The Great Recession

[idomeneus]

Someone coined the term "The Great Recession" to describe the current economic conditions and the term fits. There's a lot that could be said about where things are and where they're going. So far I've just shared my thoughts with Shannon, but perhaps I will start posting them here

Comments

[airstrip]

I think a lot of people can't afford the loss of value, especially when their business model requires that it be there. Roubini thinks the banks are insolvent, that if the assets were marked to market, they'd be deep in the red. Politically, it's a poison pill because we can't efficiently adjust our labor markets; these adjustments basically require putting people out of a job and hiring new people (at a cost) at a lower wage

[airstrip]

If it sounds like all I'm saying is that we're going to be held at gunpoint and robbed, well, that's because it's true. In reality, we all got robbed about two years ago and now the only question is how to make people's mental and real accounting reflect that fact.