No comparison is possible with the current deep recession and downfall of metal prices vs. earlier recession in 1929-1932.
Why ? The world has changed dramatically since then:
1) Far more people, most of them having greed to move up in the food chain (from bike to scooter to car to SUV), esp. China and India but also the western world has a far more substantial middle class which will continue to spend (no comparison possible)
2) Infrastructure now existing to its full extend (roads, buidlings, melters, production entities, planes -or is it smelters for our BMW friend on this very board-), can be enhanced if we like.
3) Schooling, far more people with skills, strong education and longlasting experience (but fire the MBAs on Bay Street, excellent opportunity now)
4) Improved Efficiency, mainly through innovation and plain Information Technology (so long for GMAC)
5) Trackrecord of having shorter economic cycles than decades ago, would it be 30 yrs for a bullmarket to change to severe bearmarket, since 2003 we are there again within 5 yrs, recovery schedule will take less time than everybody expects, Kondratieff cycles have shortened up.
6) Political will and knowledge, not to be over-estimated, but for sure we know better how to shape a L type of recession into a U-type recession than yrs ago.
7) We now have more than before the will and motivation to get things going. Negative motivation is best (we do not want to loose what mankind has established for better or worse)
The only thing we miss is the nostalgic ethics, of which RN is the best proof that was once there, is now long gone. If we are able to re-establish ourselves in this area, we may see some more profound development soon. Irwin, pls. make the example and quit your lousy job.
