But it gets worse: Shilling’s bluntly warning: “If we aren’t already in a recession, we’re getting very close.” ...Bottom line: if you are a risk-taker, maybe you can beat the market to the punch, before The Real Crash overwhelms Wall Street, like it did in 1929 and in 2000 and in 2008. Because next time, even though our too-big-to-manage banks expect they’ll get bailed out, the reality is that they’ll go begging for bail-out billions and Congress won’t do it again, without forcing a newer, tougher Glass-Steagall law on the banks.
Congress shouldn't have bailed anybody out the first time. It creates a moral hazard and those who engage in the bad behavior are not held to account. As a consequence, they'll just do the same stuff all over again. That's what's been happening. "If you don't learn from history, you are doomed to repeat it."
No comments:
Post a Comment