Will We Have Another Depression?

NineShifter Deborah Hoffman of Culpepper, Virginia, asks whether we will have "a major economic change" in the third decade.

She writes, "I have a BIG question for you. Do you think we will have a major Economic change in third decade? 1906 or maybe 1907 was a major Collapse as was 2007 or 8."

Deborah is right about the 100 year parallel. Our prediction of the Great Recession, printed in The New York Times Jan 6, 2006, proved correct.

Here's the deal: Like 100 years ago, we did not fix the banking system for the 21st century, setting us up for another big economic shock.  And Gordon Brown, former Chancellor of the Exchequer (Treasury) and Prime Minister of the United Kingdom, wrote last month we will have another big economic downturn because we have not fixed the banking system. Good title, "Stumbling Towards the Next Crash."

Photo from my grandfather's house looking towards the lake. His summer lake home was built in 1933, during the Depression.