From the NEW YORK TIMES:
It feels eerily familiar: Stocks are plummeting. The economy is slowing. Politicians are scrambling to find solutions but are mired in disagreement.
Many Americans are wondering whether they are in for a repeat of the financial crisis of 2008.
The answer is a matter of fierce debate among economists and market experts. Many say the risks are lower today — at least in terms of an immediate crisis — because the financial system over all is healthier and there are fewer hidden problems. But the experts add that there are reasons to worry, and they do not rule out a quick downward spiral if politicians in the United States and in Europe cannot calm investors by addressing fundamental financial threats…
Click here to read the full article.
EDITOR: The above is largely nonsense. The real cause of the market fall is fear that the recession may grow worse and, at best, will linger on for a decade or longer. A significant uptick in employment would immediately send the markets soaring.
Note what the FINANCIAL TIMES says today: “
Recovery can only come through creation of jobs, and this boils down to the need for fiscal stimulus… in other words, a second Recovery Act, and this one for a trillion dollars and in large part for infrastructure repair and creation.
People sitting home and drawing unemployment is a waste of talent and energy. Painting bridges, building highways, generating a better electrical grid, and making health care more efficient is putting money to good use. Borrowing money isn’t a bad thing in itself. It is how the money is put to use. If it creates more benefits in the future than the cost of servicing and paying the debt, then it is successful.
