Where the rot started
........And a few bullet points to remember.
And who's handy work was this?
And from this point on Wall Street followed the example set by the governments super mortgage quango, and after the dotcom crash they were on the look out for new areas to invest the Asian wall of money, which with low interest rates blew the bubble.
And was it the great and the good who spotted the bubble? was it the politicians, the academics? did a group of 364 Economist write a letter to the Times? yes there were a few who warned and they tended to be on the Austrian wing of the Economic argument. And what about the journalists where were they?
Governments should get themselves out of the market place, they only lead to major price distortions that have to be readjusted at a later date, as we are finding out now.
The recession is just that a giant price adjustment and when its settled we will be able to move forward. Reflating the bubble will not work, the age of the dollar standard is over, this is the end of an era. Its not the end of the free market system or capitalism, that's just wishful thinking from those perfect humans who have perfect ideas for the better society.