'The Worst Recession for Over 100 Years'
If this is the case, why aren't governments around the world responding more forcefully to this crisis?
In any case, this is the assessment of Ed Balls, longtime top economic adviser and closest ally of British Prime Minister Gordon Brown, made at a Labour conference in Yorkshire. He was talking about both, the British and the global recession:
The reality is that this is becoming the most serious global recession for, I'm sure, over 100 years, as it will turn out. [...]If the Obama administration had made this kind of assessment, its strategy for dealing with this crisis surely would have been more ambitious and hence more adequate.
The economy is going to define our politics in this region and in Britain in the next year, the next five years, the next 10 and even the next 15 years. [...]
These are seismic events that are going to change the political landscape. I think this is a financial crisis more extreme and more serious than that of the 1930s, and we all remember how the politics of that era were shaped by the economy.
If you believe James Galbraith, the US stimulus will only work if the bailout succeeds at getting credit flowing again, which is pretty unlikely, given that the Obama administration, just like the Bush administration before it, still seems to be determined not to confront some of the core problems characterizing this crisis.