Just like hurricanes, storms on Wall St. may seem like the end of the world, but they're not.
They're saying this is the worst financial crisis since the great depression, and I suppose in some ways it technically is, but, it's a long, long way from being as bad as the great depression.
This started twenty-five years ago with Ronald Reagan and Alan Greenspan when they de-regulated the financial sector and began artificially stimulating the economy by manipulating the fed funds rate. It's the primary reason I'll never agree with the people who call Reagan a great president.
The good news is, that like with hurricanes, we are strong enough to recover from this and we are wise enough to learn from these experiences and take measures to prevent them in the future.
You'll hear a lot of frantic chatter over the next several days, but don't lose heart. The basic economy is fundamentally sound, even if these ancillary financial groups are not.
2 comments:
My industry has been severely impacted by this not-so-severe downturn. I'm glad I'm still employed, and can still pay my mortgage. For now.
Your poor industry has been through so much besides just the economy. from the outside it's pretty bewildering, I can't imagine what it's like from the inside.
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