Paul Krugman looks today at the parallels between the "Great Depression" and what we are seeing at present in the banking sector. He is clearly worried that the lessons learned in the 1930s seem to have been forgotten
Mr. Bernanke and his colleagues at the Fed are doing all they can to end that vicious circle. We can only hope that they succeed. Otherwise, the next few years will be very unpleasant — not another Great Depression, hopefully, but surely the worst slump we’ve seen in decades.
Even if Mr. Bernanke pulls it off, however, this is no way to run an economy. It’s time to relearn the lessons of the 1930s, and get the financial system back under control.
New Zealand regulators should also be taking note.....
