You think 2008 was bad, wait and see what the next economic collapse has in store for all of us. The economy, US and Global, is in a proverbial state of pissing into the wind. Debts are out of control, with no solution in sight, politics are out of control, with no solution in sight, the economy is out of control, with no solution in sight. I hate to say that optimism is for suckers, but as time drags on it may be true.
Pessimism, even with all of its negative connotations, may be the world we now live in. No longer do we have free reign as an optimistic institution. The world we grew up in, prior to 2008, could be seen as “anything can happen”.
Well, apparently something happened and that happening was the direct downfall of the Global Economy. Now, with government and society in dire financial straits you would think that a lesson would have been learned, decisions would have changed, and rules would have been re-written. Nope, it may be safe to say that little to nothing has changed. A good word to summarize our continuous state of denial is insanity (“insanity: doing the same thing over and over again and expecting different results” – Albert Einstein). So, is another collapse inevitable?
To answer that question take a look at the article, How the Rich Will Lose Half Their Money, by Paul B. Farrell. Farrell quotes the famed economist, Marc Faber, as he recants his prediction of the 2008 collapse and his foreshadowing of what’s to come. Faber predicts that the stage is set for a collapse, one greater in scale and magnitude of 2008.
How can this be possible? It’s possible because of blatent oversight, greed, and the collective naïve of parties involved.
“Unfortunately, since Wall Street simply went back to business as usual after the 2008 Crash, fighting all reforms, a new crash is not only easy to predict in the 2013-2014 period, we can also predict that it will be far more deadly for Wall Street banks, the American economy, taxpayers, investors, consumers and retirees.”
This collapse, even in plain sight, will be different. Billion dollar bailouts will not happen, quantitative easing will have little utility, and inflation will run rampant. So when you look back prior to these events just remember a few things that could have been learned after The Great Recession.
1) Nothing is too Big to Fail
2) Printing money will always cause more harm than good (Look at the history ofcurrency)
3) Overconfidence will make us all vulnerable
So take these three things and let us pray that The Great Recession will not lead to The Greater Recession.