2008 crash deja vu: We’ll relive it, and soon

[marmar]

2008 crash deja vu: We’ll relive it, and soon
Commentary: New bubble is hotter, bigger than the last one

By Paul B. Farrell, MarketWatch


SAN LUIS OBISPO, Calif. (MarketWatch) — Warning, the stars are aligning, again. Much faster. We’re repeating the run-up to the 2008 meltdown, leading up to the next election.

Yes, another crash is coming, unavoidable, just like 2008. Not because our totally dysfunctional government is collapsing into anarchy, thanks to the 261,000 Super-Rich Lobbyists. Not just because our monetary system is run by the Bernanke Printing Press Company. And not just because a soulless conspiracy of Wall Street CEOs cares nothing for democracy and the public interest, only for their stockholders and their year-end bonuses.

Another crash is coming soon because we’re back playing the same speculative games as we did for years prior to the 2008 crash. When we collapse, it will be because America’s leaders never learn the lessons of history. Never. In a BusinessWeek editorial, Peter Coy and Rouben Farzad described the bubbles:

“It’s as if 2008 never happened. Once again the worlds investors are pumping up bubbles that will probably explode in their faces. After the popping of a real estate bubble led to the first global recession since the 1930s, world markets are frothing like shaken Champagne. Pundits claim to have spotted price increases that are unsupported by economic fundamentals in assets ranging from U.S. farmland to Israeli biotech to Australian housing to Chinese cemetery sites. Commodities have soared. Global junk-bond issuance hit a record in the first three months of the year … this is the granddaddy of them all, an almost-encompassing bubble right at the heart of monetary systems.” .............(more)

The complete piece is at: http://www.marketwatch.com/story/2008-crash-deja-vu-well-relive-it-and-soon-2011-04-26?link=home_carousel

[RandomThoughts]

1. I'll be listening to music.

Pink Floyd - Wish You Were Here
http://www.youtube.com/watch?v=QCQTr8ZYdhg

And I am due beer and travel money and many experiences.

[Demeter]

2. Yes, but Thank God and Bernanke, The Zombie Banks Are Safe!

(maybe)

[txlibdem]

3. Funny how we Dems had the House, Senate and Prez but didn't ban those crooked deals

Gosh, if I was a cynical person I might begin to think that we have only one political party, the Corporate Party of America - CPA.

[Fearless]

6. +100000

[bhikkhu]

4. Lessons not learned, and probably still ignored:

Oil demand has exceeded supply for some months now (in spite of what the Saudi's have said): http://omrpublic.iea.org/

Perhaps its been less of an obvious issue here since 2008 because all the growth in demand has been in China and India, while the US has actually responded reasonably to high prices, by reducing consumption. Nevertheless, we compete with all the other countries for the limited supply. If there were no speculators it wouldn't matter - there's not enough oil, and its vital for economic activity, so it will be competed over.

None of that really encourages finger-pointing or "Just Anger", so there's no satisfying simple way out. Basically we'll all use less and pay more, and everyone in the world is in the same boat.

[libmom74]

5. One point I disagree with.

I don't believe the CEO's are clueless I think they are complicit. They always seem to make out just fine (actually better) after they crash the markets. And notice the convenient timing predicted (right before the 2012 elections).

[SkyDaddy7]

7. They won't make out better if it happens again...

There literally is no money to help them this time...And we will pay deeply! This time it won't be just a deep depression "like" recession it will be NO ECONOMY AT ALL! It would be the end of Capitalism & Democracy! It would be pure HELL for EVERYONE!

The Rich people would be in the same boat as the rest of us because money would be worthless...Really just paper & numbers on a computer screen!

[Yooperman]

8. Yep...

This one could be worse.... as so many people are still out of work from the last collapse.

Good Luck we are going to need it....

Peace,

YM