Well, Over-Speculation And Over Leveraging Again
I miss Bluesox, who was a former member here from Boston in the Finance industry. Being an accountant, I am technically his mortal foe on valuation purposes ,but I loved arguing with him over the future of Capital markets and Capitalism itself. Beyond politics, my first love is Economics and we are seeing a classic example of Supply surplus with weak demand. Yes, the great recession was started with too much hype over Supply side economics, but the current situation really shows that there is merit in my side of the debate as well. We have been disinflating for too long, relying on a steady demand that was not matching supply surpluses in Chinese labor or Oil, and ultimately there's a large problem in our market that was not resolved with the 2008 Financial bailouts, leverage. We still have to much debt on our balance sheets, inbued with federal stimulus and federal reserve low lending rates.
I know I am speaking a little too technical for most readers, but it is really amazing to see something this happen as theoretical ideas would point.
The bigger question now is how do you solve this issue?
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