Will the coronavirus lead us to another Great Depression?  To answer this question, we should look at previous recessions and their causes. The original Great Depression started in 1929.  An increase in the stock market price earnings ratio caused the market to be artificially high.  When stockholders realized that they owned stock that was overpriced, they sold.  This caused a recession.  The same thing occurred in 1906, 1965, and 2000.  You probably remember the last occurrence.  Federal Reserve Board chairman Alan Greenspan expertly managed interest rates.  We had a mild recession.  So why was 1929 so different? Republican president Herbert Hoover was not an economist.  He depended on his advisers.  They recommended an increase in government spending whether it accomplished anything or not.  This damaged the economy even more.  This is like...(Read Full Post)