August 30, 2010
|Economist David Rosenberg.|
David Rosenberg, market guru, has officially declared that the US economy is in a state of depression, and he sees the economic superpowers woes worsening.
On the heels of that bleak forecast, the statistics for existing home sales for July were released and the numbers were ugly. The weak housing market collapsed. Reflecting the worst slump in American history, existing housing sales had plummeted a stunning 27 percent and there’s no sign on the horizon that sales will stabilize any time soon.
The bottom line, argues Rosenberg and others: the US economy has collapsed into another Great Depression.
Citing the period from 1929 to 1932 and the eerie similarities, Rosenberg said, “We may well be reliving history here. If you’re keeping score, we have recorded four quarterly advances in real GDP, and the average is only 3 percent.” The same happened during the early 1930s stock market rebound of 50 percent after the 1929 crash.
The Great Depression followed the brief economic upswing.