Microsoft Chief Executive Steve Ballmer likens economy to depressions of 1837, 1873, and 1929

Greetings !
 
I recently came across an article on Steve Ballmer and his views on current economic crisis. Although it is a US Centric view, its still useful to know the views of the powerful CEO’s so that we can prepare ourselves . One should always hope for the best and prepare for the worst as is rightly said. Please find the article below.
 
with warm regards
 
Suresh Ramani
 
 
 

Microsoft Chief Executive Steve Ballmer sketched a dire portrait of the world economy on Friday, likening it to market conditions in 1837, 1873, and 1929, each of which involved bank failures, high unemployment, and a depression.

"This is a once-in-a-lifetime economic crisis," Ballmer told a retreat of House Democrats in Williamsburg, Va. "There is a lot of history around that, and frankly if you stop and think about it, 1837, 1873, 1929, 2008, it’s almost exactly a whole lifetime between each of the major economic difficulties that we face."

Ballmer said that economic growth in the last 25 years was fueled by innovation, globalization, and debt–and that the current levels of debt were unsustainable. "In 1929, for example, just before the stock market crash, the private debt-to-GDP ratio was 160 percent," he said. "Last year, private sector debt as a percentage of the GDP: 300 percent, far more leverage."

His warning of a protracted downturn that could become a depression comes amid a stock market that is down by more than 40 percent from its October 2007 peak, and housing prices in many metro areas that have been falling consistently since July 2006–a feat not equalled since the Great Depression.

"In my view, what we now have will be a fundamental economic reset," he said. "The economy is going to have to re-establish itself at a level of spending that reflects the real value of underlying assets before we can all start growing again at a healthy rate."

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About Suresh Ramani

I am a CEO of a Technology Solutions Provider "TechGyan" ( Gyan in Sanskrit means "knowledge") . My Company is based out of Mumbai, India . My Company provides Solutions to Customers ( Local & International) around Microsoft Platform. In 2009, Microsoft nominated me as a Most Valuable Professional (MVP). During week ends I provide Redevelopment Consultancy to Societies in Mumbai . The details of the same are listed on www.tdrmumbai.in My hobbies are reading Management Books . Like most of Indians , I love game of Cricket and Hindi Songs.
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