When jumping off a cliff, first make sure there is a bottom...

[Javaman]

http://www.nakedcapitalism.com/2009/04/world-economy-falling-faster-than-in.html

World Economy Falling Faster Than in 1929-1930

Barry Eichengreen, an expert on the Great Depression, and Kevin O'Rourke, take issue with the notion that the current downturn is less severe than the Great Depression. While the slump in the US is not as bad, that mis-states the global picture.

Note that many economists expect the US to suffer less than the big exporters, namely China, Germany, Japan. The reason is that the economic adjustment required of surplus nations is greater than that of debtors. Similarly, in the Great Depression, the US, then a major exporter, was harder hit than the overconsuming importers such as Britain, who defaulted on their debts.

The one bit of cheer is that this time around, government action is more aggressive, but it remains to be seen whether it is sufficient.

(check out the world stock market chart at figure #2) yikes!

[On the Road]

1. I Had Never Thought About the Difference in the Trade Balance

That could be very significant. It also means that protectionism could help rather than hurt this time around.

[L. Coyote]

2. I gave this some deep thought

When jumping off a cliff, first make sure there ISN'T a bottom...

[Terry in Austin]

3. Coyote moment

The secret is not to look down... Wile E. does it every time!