Another depression is inevitable – it’s just a severe form of what happens in the down phase of the business cycle. We just don’t know WHEN.

I’m a big believer in cycles. Everything in nature operates within repeating cycles and there are short cycles within longer cycles. The economy is created by people so we cause the cycles to occur by our nature. A really long economic cycle would be the rise and fall of an entire civilization. Within that, there are shorter cycles that represent major shifts in methods of production/use of energy/etc. Within those, there are business cycles where the economy first overshoots then undershoots asset values, employment, etc. This again is an oversimplification. These cycles have been “manipulated” by the Federal Reserve for the last few decades in an effort to prevent a meltdown. The meldown has not been prevented though, just postponed and the potential for problems multiplied.