Is an Economic Depression Impossible Now?

Let's examine a serious question.  Is an economic depression impossible in 21st century America? Some famous people are saying we will not have a depression.

“Enough with the hysteria,” Cramer said during Tuesday’s Mad Money, we’re not going to suffer another Great Depression.  More Detail.

Is he right?  After all the US government can print money and has shown a willingness to do so.  We have a Congress that loves to bail companies out in order to increase the power and scope of the federal government.

In addition, we have a Federal Reserve that has shown they are willing to add trillions of dollars to their balance sheet to fight a serious economic downturn.

But printing money has consequences too.  In time this may result in runaway inflation.  If it goes to hyper inflation the economy is destroyed as people with savings in paper money are simply wiped out financially.

Will we have a depression or hyper inflation down the road after the deflation we are now experiencing runs its course?  Nobody knows.

But I do have one serious question.

For all those who are sure that with the smart people and printing presses we have now that a depression is not possible, my question is how did we get into this mess to start with if we have all this figured out and under control?

J. Cogburn