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Nobel Prize-Winning Economist Says World Avoids 2nd Great Depression

Governments around the world jumped to pump billions upon billions of dollars into the economy over the last 12 months and in doing so has managed to avoid the “2nd Great Depression”. Or at least that is the opinion of Economist Paul Krugman.

Paul Krugman says that the world global crisis is over but the recovery is still a couple of years away perhaps even longer and does not expect a “Phoenix like” recovery. Source: 2nd Great Depression Avoided

Is the crisis really over? If the last 6 weeks in market performance is any indication then it is. Yet I have my doubts. I continue to believe that the world markets still do not reflect the number of unemployed nor the new economy that is emerging. The big money wants things back the way it was and now not later which I believe is what is driving the current uptrend.

Eventually we will all know for certain. But for now I will continue to stand on the sidelines watching gold mining stocks like Northgate Minerals (NYSE: NXG) and Yamana Gold (NYSE: AUY) and alternative energy company Ener1 Inc. (NASDAQ: HEV) while waiting for the next shoe to drop.

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