At the Asia Times, if I understand his point correctly, Spengler argues that Asia needs the US to be irresponsible because Asia isn't irresponsible enough to create massive wealth.
One of the big questions now is how much lower the market will go. The big indexes are just now getting to the point where I think they should be if growth since the early nineties had been of a health sort instead of irrationally exuberant. (Of course I'm pulling that entirely out of my derrier. There is no good reason to use the early nineties as a starting point. Nor is my estimate of healthy growth based on any economic theory.) If the markets keep falling, I'm going to start to enter the territory of `oh crap! this is bad!'
Maybe I'm too cynical, or maybe things are just too early to see the full brunt, but it doesn't look anything like the Great Depression to me. It may build to that overtime if everyone starts unloading their stocks, as so many people put `savings' into investment vehicles rather than banks where savings should go, it might be akin to the good old fashioned bank runs that kicked off the Great Depression. But on the other hand, I think most people, especially those that really need it, have their money in banks insured by the FDIC. And we have Social Security. At least in the US, we're not going to see the widespread starvation and destitution of the early and mid-thirties.
Not that this means it's going to be fun.
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