Great Depression remains the worst crisis

As per the Economist, that dubious distinction belongs to the Wall Street crash in 1929 and the consequent fallout that was the Great Depression. Not surprisingly, the worst incidents since that one are all related to the 2008 global financial crisis. The near bankruptcy of Greece, the housing collapse in Ireland and the banking crisis in Iceland are all products of the excesses and asset bubbles that had formed before 2007-08. Since then, there has not been much of a meaningful recovery seen in most of the developed countries of the US and Europe as output has stagnated and unemployment rules high. The only form of support has been loose monetary policies unleashed by central bankers. Rather than solving the problem, these have only raised the prospect of higher inflation in the future.