... in my view, the big crisis is ahead of us. It may come in 4 or 5 years' time, maybe only in 10 years' time, but the total breakdown of the system is ahead of us and it will devastate the global economy. (4:18 on)
You have to decide whom to believe. Including Steve Keen, it's said that only 12 professional economists worldwide foresaw the crunch, although there are 10 - 15,000 practising in the US alone. So the majority verdict is useless. To me, Faber has the ring of truth.
The good news, such as it is, is that we may have a few years to prepare.
As to perceived turning points, I looked at this last December:
Faeces - that's chilling. Though we've been rabbiting on about it, the reality of where we are is chilling and it will be felt form the middle down and then slightly up into the UMC who'll either join the Mandies or sink with the rest of us.
ReplyDeleteOn that note, how's your BH Monday going?
Hi James. Working (paper, paper) and clearing out rubbish from the house. As to the stockmarket, I've said more than once I fear it may halve again in real terms; but that is of interest only to those who have money to invest. As the following post says, most income and so (presumably) most money currently being saved, is at the very top end of US society. I think this inequality threatens the stability of society.
ReplyDeletehttp://www.nakedcapitalism.com/2009/08/guest-post-the-savings-rate-has-recoveredif-you-ignore-the-bottom-99.html