The ultimate result of shielding men from the effects of folly
is to fill the world with fools
Coined the phrase “Survival of the fittest”
The most terrifying words I've seen written so far about the growing crisis
...were penned by Yves Smith:
So the whole idea that the financial crisis was over
is being called into doubt.
Recall that the Great Depression nadir
was the sovereign debt default phase.
The Great Depression was composed of two separate panics.
...in 1930 people thought they'd seen the worst of things.
Unfortunately, the economic conditions created by the first panic were now eating away at the foundations of financial institutions and governments, notably the failure of Creditanstalt in Austria. The Austrian government, mired in its own problems, couldn't forestall bankruptcy; though the bank was ultimately bought by a Norwegian bank, the contagion had already spread.
To Germany. Which was one of the reasons that the Nazis came to power.
It's also, ultimately, one of the reasons that we had our second banking crisis, which pushed America to the bottom of the Great Depression, and brought FDR to power here.
Not that I think we're going to get another Third Reich out of this, or even another Great Depression. But it means we should be wary of the infamous "double dip" that a lot of economists have been expecting.
...I don't see much chance that a bailout is going to work.
The Atlantic via Business Insider
The problem with socialism
is that you eventually run out of other peoples money