Global Recession - Malaysia in Denial

It's funny when an anticipated event will still caught people by suprise if it did really happened. That's what happened when the US faced an economic meltdown eventhough pundits have warned on this as early as 2006. What the global community was caught off guard was the severity of the recession. Many economists predict the recession will be as worse as the 1930's depression. Please note that the 1930's depression has led to world war two. 

A recession can be defined as a significant decline in economic activity spread across the economy and last more than a few months or by technical terms two quarters of the year. Recession impacts the real GDP, real income, employment, and industrial production. A sustained recession may led to an era of depression. 

With the global financial crisis looming, it is suprised when the top honchos that led the financial matters in this country are saying that we will not be affected as much as the other countries. This statement reminded me about a quote Harry Truman once said about recession 'Recession is when a neighbour losses his job. Depression is when you lose yours.' Malaysia has not yet felt the full brutal effect of the global wave of recession and therefore we are still in denial. The wave will reach our shores next year and we have to be prepared for it as it can be worse than we have ever encounter before. 

Global recession near the corner?

"The Great Depression was a dramatic, worldwide economic downturn beginning in some countries as early as 1928.[1] The beginning of the Great Depression in the United States is associated with the stock market crash on October 29, 1929, known as Black Tuesday and the end is associated with the onset of the war economy of World War II, beginning around 1939." - source Wikipedia

This info I got from wikipedia really freaks me out in one way or another. There has been talks in the newspaper, magazines, that if the trend of oil price increase continues, it will trigger a economic recession all around the world. This will also led to a another great depression similar to what have happened in the 1940's.

As people always say, history tends to repeat itself. If we were headed to another global recession, is it also possible that we will be heading towards another world war? This is another info I got from wikipedia:-

"Germany's Weimar Republic was hit hard by the depression, as American loans to help rebuild the German economy now stopped. Unemployment soared, especially in larger cities, and the political system veered toward extremism. Repayment of the war reparations due by Germany were suspended in 1932 following the Lausanne Conference of 1932. By that time Germany had repaid 1/8th of the reparations. Hitler's Nazi Party came to power in January 1933". - Wikipedia

So, basically due to the recession, Hitler managed to get in power due to unsatisfied citizens at that time trying to cope with rising inflations. Sounds familiar right? The number of unemployed in German grew; poverty on the rise, people starved on the streets. In the crisis, people wanted someone to take the blame and Hitler offered them the solution, and Nazi succeeded in taking power. After Hitler comes to power, the next thing he did was to divert the attention of the german people from the crisis that they have and focus it on expanding the german empire by invading other countries. Therefore, World War two unfolded. As I said again earlier, history tends to repeat itself and I greatly hope that this one would not.