Finally a noted economist says outright that the markets have experienced a crash. In The Great Crash of 2008 Robert Reich points out that, as of the close on December 1, markets have dropped 47 percent since the peak of last year, which is in the range of the Great Crash of 1929.
Reich also is right that more credit won't solve the problem, because debt loads are unaffordable relative to stagnant incomes ... and now we are hit with a severe economic downturn. That's what you get when the nation's resources have misallocated for years on end -- a bubble economy, bubble markets, and a Great Crash.
Look for the bad news to continue.
Source:
"The Great Crash of 2008"
Robert Reich's Blog, Monday, December 01, 2008
http://robertreich.blogspot.com/2008/12/great-crash-of-2008.html
