Is this a banking crisis or a recession?

[Eric J in MN]

If we call it a banking crisis, the implication is that Congress should pass a bill giving $700 billion to banks.

If we call it a recession, the implication is that Congress should stimulate the economy in traditional ways, like buiding roads and extending unemployment payments.

[roamer65]

1. Classic credit crunch, leading into an inflationary recession/depression.

A very nasty double whammy.

[Dreamer Tatum]

3. Credit crunches are not inflationary, they're deflationary eom

[roamer65]

4. This one is inflationary.

http://www.shadowstats.com/alternate_data

See the inflation chart. Current inflation by the 1980 measurement is above 13%.

M3 money supply is currently at 14% growth and will surge over the coming months.

[Dreamer Tatum]

6. A credit crunch stabs money demand in the heart

And commodity prices are falling hugely. Don't let consumer prices fool you...once the recession is truly in
gear, prices will tumble.

[FarCenter]

2. See "Panic of 1893"

http://en.wikipedia.org/wiki/Panic_of_1893

[depakid]

5. It's both