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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsPaul B. Farrell: The Real Crash is dead ahead as 2008 is forgotten
By Paul B. Farrell, MarketWatch
SAN LUIS OBISPO, Calif. (MarketWatch) Facebook will become the poster child for the current social-media bubble, warns economist Gary Shilling in his latest Forbes column, just as Pets.com was for the dot-com bubble. Yes, Wall Street is repeating the 2000 dot-com crash as todays social-media bubble crashes and burns.
Think history folks: Remember 2000-2002? The economy suffered a 30-month recession and a brutal bear market. The Dow Jones Industrial Average peaked at 11,722, then crashed, losing over 4,000 points dropping below 7,500, down more than 43%, with massive losses of more than $8 trillion in market cap.
But it gets worse: Shillings bluntly warning: If we arent already in a recession, were getting very close. Yes, hes more reserved than Nobel economist Paul Krugman, whose latest book goes beyond hinting that the America economy is repeating the 2000-2002 recession, His title says it all: End This Depression Now!
But the scariest fact is that Americas warring politicians, CEOs and Super Rich cant even see the obvious link between the 2012 social-media bubble and the 2008 Wall Street credit bubble that nearly bankrupt our monetary system and forced Congress and the Fed into bailing out our too-big-to-manage banks to an estimated $29.7 trillion in cash, credits, cheap money loans and debt relief. ....................(more)
The complete piece is at: http://www.marketwatch.com/story/the-real-crash-is-dead-ahead-as-2008-is-forgotten-2012-07-31
xchrom
(108,903 posts)Yeah Its Spin
(236 posts)So is he saying romney is behind this one too?
kentuck
(111,110 posts)"We should have fixed it when we had a chance..."
Javaman
(62,534 posts)humans rarely if ever plan long term solutions for society.
JoeyT
(6,785 posts)we'll probably look back on it and insist that it was burdensome regulation that caused the crash.
Well, not us, obviously. We're not idiots. But the people with the power to prevent the next one will probably do that.
leftyohiolib
(5,917 posts)chervilant
(8,267 posts)Is this akin to the condescending adjuration "You're just paranoid!"? I have to wonder, you see, because those of us who predicted this economic catastrophe (well before 2008) were told that our concerns were without merit. Now, those of us who assert that the catastrophe is ongoing, and the worst is yet to come, get the proverbial pat on the head ("There, there, it's not as bad as you think!" .
History shows us that economic behavior continues unabated during 'hiccups' in our economic engine. Indeed, some of the most amazing inventions occurred during the Panics of 1893 and 1907 (when the Knickerbocker Trust got its pantaloons in a twist). Moreover, the uber wealthy have effective strategies for growing wealth during economic downturns.
Those of us who assert that this economic catastrophe has not yet run its course are fully aware that the uber wealthy are struggling to maintain the illusion that we're experiencing a 'recovery.' This does not make it so. Furthermore, asserting that the worst is yet to come does not mean that we are paranoid Chicken Littles. (When the proverbial caca hits the fan, I promise I won't say, "I told you so."
leftyohiolib
(5,917 posts)just because you're paranoid doesnt mean they arent out to get you. the problem is with so many people saying something terrible is coming you dont know who to listen to and of course one day they'll be right and they will say , and so will you, "see i told you so."
while i fully agree with "Those of us who assert that this economic catastrophe has not yet run its course are fully aware that the uber wealthy are struggling to maintain the illusion that we're experiencing a 'recovery", but as you said it doesnt make it so
my point is something terrible is on the way and one day i will be right, people have been saying this for ever but without specifics it does no one any good
chervilant
(8,267 posts)I totally misunderstood.
Of one thing I am completely confident: the next two decades will not be dull.
reformist2
(9,841 posts)First the real estate bubble, now the stimulus bubble. It pains me to say this, but nobody is coming up with long-term solutions to our economic problems - nobody on the national stage, at least.
Egalitarian Thug
(12,448 posts)that have allowed our national economy to be hollowed out and captured by their campaign contributors.
CrispyQ
(36,509 posts)I still maintain my ritual on the 1st Tuesday of November, but I don't do it enthusiastically or with any feeling that it will make one bit of difference.
Bertha Venation
(21,484 posts)dixiegrrrrl
(60,010 posts)Octafish
(55,745 posts)Of course they'll come back for more. They own the banks.
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x4224612
bulloney
(4,113 posts)For the past 10-20 years, our markets have just created money out of thin air with nothing tangible to back them. Hence, the bubble economies. The elite who have the inside information on when things crash and burn make out like bandits. The rest of us lose our jobs or most of our retirement portfolios, resulting in increasing concentration of our nation's wealth, which is not good.
The only way to create real, new wealth is through agriculture & aquaculture, manufacturing and mining. You're only building your economy on a house of cards when your markets are on a foundation of pyramid schemes as we've experienced in recent years.
NuttyFluffers
(6,811 posts)extraction, cultivation, manufacture, that's the foundation upon which ALL services rest. the higher heavens of nothing but service economy is just that, pretending to rest on a cloud while riding a balloon; there's nothing solid, foundational, only fervent faith in one's delusion. we will keep failing until we relearn the fundamentals. and each and every time it will cost people's livelihoods and lives.
fasttense
(17,301 posts)The American people didn't want them bailed out last time either, but they did get bailed out with absolutely no strings attached.
What is going to stop our purchased politician from doing it again? What's going to stop Obama and Bohner from bailing out their campaign contributors yet again? Neither Democrat or RepubliCON parties stood up and stop the theft of our tax dollars last time. They wont this time either. Hell, Obama is right this moment developing a super secret plan to turn America into corporate heaven through the notorious trade agreement TPP.
The only thing that would stop them, is mass protest by American citizens. But Americans are just too wimpy. If only 1% of the American population would show up on the Washington mall in protest, it would scare the hell out of the politicians. But Americans just love their corporate masters and wont do a damn thing.
1-Old-Man
(2,667 posts)And exactly the same charlatans are taking advantage of it as did the real estate bubble.
tjwash
(8,219 posts)Articles like this are written mainly to scare people into accepting austerity getting shoved down our throats, so that the multi-billion dollar bonuses keep flowing among the suits at the banks.
bhikkhu
(10,724 posts)every 6 months or so it seems to double, retroactively.
dionysus
(26,467 posts)aint_no_life_nowhere
(21,925 posts)Is there really anything left?
99Forever
(14,524 posts)But I can't.
Gonna get very ugly before this is over.