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Nouriel Roubini: could Covid-19 spark the greatest depression?

After the 2008 crash, a forceful (though delayed) response pulled the global economy back from the abyss. We may not be so lucky this time

The front page of the Brooklyn Daily Eagle newspaper with the headline 'Wall St. In Panic As Stocks Crash', published on the day of the initial Wall Street Crash of 'Black Thursday', 24th October 1929
The front page of the Brooklyn Daily Eagle newspaper with the headline 'Wall St. In Panic As Stocks Crash', published on the day of the initial Wall Street Crash of 'Black Thursday', 24th October 1929 Photo: Getty Images

The shock to the global economy from Covid-19 has been both faster and more severe than the 2008 global financial crisis (GFC) and even the Great Depression.

In those two previous episodes, stock markets collapsed by 50% or more, credit markets froze up, massive bankruptcies followed, unemployment rates soared above 10%, and GDP contracted at an annualised rate of 10% or more.

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