Comparing now with the '30s

Seems to be all the rage among pundits - and indeed there are some eerie similarities. But the explanation for a not-so-terrific recovery might center less on the possibility of a double dip recession - or worse - and more on the inevitable ups and down of a post-bubble economy. From USA Today:

Typically, after once-in-a-generation-type declines, powerful rebounds tend to occur, but the trajectory is never straight up. Relief rallies are often followed by big dips, which are then followed by fresh rallies and sell-offs. New highs often don't materialize for years, if at all. Ten years after super-pricey tech stocks crashed in 2000, the Nasdaq composite remains 56.8% below its record high. Similarly, Japan's benchmark stock index, the Nikkei 225, is down 75.8% since its stock and real estate bubble burst in late 1989.

[CUT]

Working through the problems caused by the wealth destruction due to the real estate bust, 8.5 million lost jobs and the worst stock decline since the 1930s will take time. The initial economic rebound may prove fleeting, bears argue, which could cause stock prices, which have been rising on the hopes of a sustainable recovery, to head back down if those expectations are not met.