"A wide gulf, therefore, is set between the ideas of lenders and the ideas of borrowers for the purpose of genuine investment; with the result that the savings of the lenders are being used up in financing business losses and distress borrowers, instead of financing new capital work.
At this moment the slump is probably a little overdone for psychological reasons. A modest upward reaction, therefore, may be due at any time. But there cannot be a real recovery, in my judgment, until the ideas of lenders and the ideas of productive borrowers are brought together again; partly by lenders becoming ready to lend on easier terms and over a wider geographical field, partly by borrowers recovering their good spirits and so becoming readier to borrow. If the diagnosis is right, the slump may pass over into a depression, which might last for years."
Déjà vu! The 2008/09 crisis seems like the one witnessed in 1930s. More here.
