Robert Schiller, the Yale economist who predicted both the dot.com bubble and the housing bubble, discusses the crisis. Money quote:
The big question: Is this 1987 again… or is it 1929 again. I’m actually fearful that it’s 1929 again… There is much more of a fundamental shock to confidence and much more worry set off among investors.
November 9th, 2008 at 10:49 am
The bleakness and panic that people felt in 1929 is probably very close to what many people are experiencing now. We’ve lived in an economy where, for so long, everything seemed attainable. To suddenly have that turned off and drastically altered is indeed a shock to even the most prosperous folk out there. Everyone wants to know that they’re going to have enough to survive, but no one wants to go through their days counting every single penny. It almost feels like some freedom has been lost in having to be overly conscious of every move we make, taking into consideration how even the littlest thing could affect us financially.