Anyone watch this?
I thought it was brilliant, watching that then thinking about the future for the economy in the USA and here in the UK, it dosent look good does it.
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The Flaw
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Posted 6 months ago #
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I saw it and found it very interesting. Lots of thing there i hadn't heard on the news.
If i understood it correctly (which i probably didn't) we're going through the same financial pattern as happened in the Depression, which means we've got years of steady improvement to look forward to???
Posted 6 months ago # -
I only saw the last hour. But i didn't see the bit where they said what the 'flaw' with Greenspans model was. What was/is the flaw?
Posted 6 months ago # -
“I made a mistake in presuming that the self-interest of organizations, specifically banks, is such that they were best capable of protecting shareholders and equity in the firms.”
http://asociologist.wordpress.com/2008/10/27/greenspans-flaw-not-just-significant-also-ginormous/
As I understood it another fundamental is that over the last 30 years the true earnings of an average worker have not risen and the gap between that and increasing consumer spending has been made up by borrowing. In other words we all settled for debts instead of pay rises.
I think the difference now to the depression is that in the depression they just let all the banks go to the wall, taking everything/body with them. I think half of US banks went bust.
Posted 6 months ago #
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