Monday, February 25, 2008

Fear and loathing in 2008

This is what I'm afraid of:


Unlike 1929... we don't have overcapacity in manufacturing, we have "just in time" and "global supply chains"

Unlike 1929... we don't have the world's largest oil reserves, we're the biggest importer

Unlike 1929... we don't have a currency backed by gold

Unlike 1929... we don't have a first class railroad infrastructure

Unlike 1929... we don't have working mass transit for most cities



Like 1929... we do have a banking industry that went out of control

Like 1929... a lot of people have their life savings tied up in paper assets (stocks)

Like 1929... people think that things are only going to take a minor dip and keep going up

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