Why We Might Be on the Verge of Another Financial Crash

[xchrom]

http://www.alternet.org/economy/why-we-might-be-verge-another-financial-crash



The denial of fundamental economic principles is setting the world up for another Great Crash.

Although wages have been flat or declining since the West started following Thatchernomics and Reaganomics in the late '70s and early 1980s, the stock market has risen to all-time highs. Billions—hundreds of billions—have been made by individuals on Wall Street.

Meanwhile, over 60,000 factories have closed in United States just in the past 14 years, and over 50 million Americans are either unemployed or underemployed.

In Europe, with the exception of the Scandinavian countries who are ignoring our economic advice, the situation is very similar. Other then Germany, which is becoming a major extractor of wealth from the rest of the EU, European countries and Great Britain are following the same fallacy that has been driving U.S. economic policy for more than 30 years.

[merrily]

1. Not to mention that Glass Steagall remains repealed

and banksters are selling mortgage derivatives again (still?).

Bless the fooking job cr-eaters and the anti-labor folk, in and out of government.

[djean111]

2. "Other then Germany, which is becoming a major extractor of wealth from the rest of the EU"

I was teaching a software class in Denmark when they took a vote on joining the EU. I asked my class how they felt about that, and they said there were some advantages, but that they did not want to use the Euro, and they especially did not want Germany in charge of anything to do with Denmark's money. Denmark still does not use the Euro.

Footnote to that - we passed a voting place in Copenhagen, there were a few people with signs, and they were out-numbered by CNN personnel. Got back to the hotel, tuned the TV to CNN International, and this was presented as a huge demonstration, lots of tight camera angles. Never believed anything I saw on CNN since, really.

[DeSwiss]

3. The last one never actually stopped.

- They just slow it down with our great-grandchildren's money....

K&R

[center][/center]


Thinking Backwards

[blkmusclmachine]

4. Sadly, yes.

[MannyGoldstein]

5. Spot on. nt

[Edim]

6. A very good article. nt