The relentless fall of the stock market this week has bridged over from disappointment, through depression (personal Prozec depression) to fear -- fear of a Hoover-style depression. Not simply the fear of losing money, but the fear that the economy could possibly enter a decades-long economic depression.
The money supply is contracting quickly as billions of dollars of stock market value slips away into nothing. Everyone feels poor, and who is going buy something expensive? Everyone is going to wait, and the whole nation -- perhaps the whole developed world will sink into a a fearful sulk.
Those of us who live in the Detroit metro area can be afraid that our housing values are going to crash even further if the auto companies go bankrupt. As the recession began, at least we could console ourselves that export markets were strong. With the dollar on the mend, and the foreign economies crashing also, it is hard to be upbeat.
No comments:
Post a Comment
What do you have to say?