[url=http://sober-speculation.blogspot.com/2010/01/there-is-no-financial-cris... is no financial crisis.
So here's what happened. When I was done with school one day I headed out, I was hungry so I took a detour to this fast food joint and ordered a sandwich and then went off to eat it in a corner when it suddenly occured to me they didn't charge me!
Yeppers evidently they weren't paying me much attention because some manager type was inspecting the store The reason I didn't realize thiswas because I was pondering this disturbing thought I had about the recent stock market crash. The fact is that nothing crashed except currency! All the people in all the companies are still there, all the technology is still there and not forgotton. Now obviously besides the fact that the dollar is known to have lost value the price of stock(in dollars) has also crashed. Now think! Shouldn't the opposite have happened? How can stock value fall more than currency? It can't!
This financial crisis is purely psychological and those who don't snap out of it are doomed to failure. Not that it matters much to me personally at this stage in my life though but my guess is that most people are fully unaware or only partly aware that most stock is currently undervalued and there will be no depression. This is so audaciously simple that it just goes over everyone's heads. All of these figures of low growth don't mean anything. Answer me this, if the growth of the last decade was 20% then what difference does it make if everything shrinks by 10% over the next decade? Answer, none! There is no crisis or as that one person whose name I don't recall right now said, it's just an opportunity.
Actually, we had done a debate comparing the recession with the Great Depression in AP Us history a couple of days ago. I, for one, did not think that the current economic recession is the Second Great Depression but it is a financial crisis nevertheless.
Why?
1. In any financial disaster, there is overspeculation involved. Look at the housing situation right now. A couple of years ago, people were going crazy for houses, my aunt bought 4 or 5 of them, and sold them. Now, foreclosures for people who can't afford them anymore.
2. Simple matter of the fact is that about 4.8% of people do not have jobs. Yes, that's not psychological. That's the truth.
3. Bank closures, or buyouts. Trust me, look at the banking situatioin right now.
4. And, I don't think you're understanding the GDP correctly.
Sure, this is not a 'major' economic crisis, but it is still one nevertheless. Tell the people that have lost their cars, houses, or anything else significant that it's purely psychological. Not only that, the Euro has been lost its value, that's a really bad thing. I think that this is the worst recession since after WWII, if I remember the article that I had read correctly.
I think it can finally be defined as a 'crisis'...