Robert Shiller writes in a Bloomberg commentary today that the US is in danger of facing another Great Depression. And while he lauds the Obama Administration for "stronger efforts to date" than during the Depression, he calls for more stimulus spending: In the face of a similar Depression-era psychology today, we are in need of massive pump-priming again. We appear to be in a much better situation due to the stronger efforts to date. Still, there is a danger that, because of a combination of faulty economic theory and inadequate appreciation of human psychology, as well as deep public anger, we will not continue with such stimulus on a high enough level. We desperately need to be persistent, keeping our government response adequate for the problem at hand on a sufficient scale and for sufficient time. Earlier this week, Shiller discussed the financial crisis and the current recession as compared to the Great Depression with his fellow Yale economists John Geanakoplos and Richard Levin (also president of Yale). They also compared the current government response to the government efforts during the Depression, and deficits and stimulus spending (Levin calls World War II the stimulus package for the Depression) from both periods. Some of the conversation is a repeat of a February panel in which these three economists were all participants. If you have already viewed that discussion (available here ), you can skip to 15 minutes in on this video (which has the added benefit of skipping most of the Yale back-patting, if that is unappealing for any reason). You can read Shiller's Bllomberg commentary here.