Paul B. Farrell: The Real Crash is dead ahead as 2008 is forgotten

[marmar]

By Paul B. Farrell, MarketWatch


SAN LUIS OBISPO, Calif. (MarketWatch) — “Facebook will become the poster child for the current social-media bubble,” warns economist Gary Shilling in his latest Forbes column, “just as Pets.com was for the dot-com bubble.” Yes, Wall Street is repeating the 2000 dot-com crash as today’s social-media bubble crashes and burns.

Think history folks: Remember 2000-2002? The economy suffered a 30-month recession and a brutal bear market. The Dow Jones Industrial Average peaked at 11,722, then crashed, losing over 4,000 points dropping below 7,500, down more than 43%, with massive losses of more than $8 trillion in market cap.

But it gets worse: Shilling’s bluntly warning: “If we aren’t already in a recession, we’re getting very close.” Yes, he’s more reserved than Nobel economist Paul Krugman, whose latest book goes beyond hinting that the America economy is repeating the 2000-2002 recession, His title says it all: “End This Depression Now!”

But the scariest fact is that America’s warring politicians, CEOs and Super Rich can’t even see the obvious link between the 2012 social-media bubble and the 2008 Wall Street credit bubble that nearly bankrupt our monetary system and forced Congress and the Fed into bailing out our too-big-to-manage banks to an estimated $29.7 trillion in cash, credits, cheap money loans and debt relief. ....................(more)

The complete piece is at: http://www.marketwatch.com/story/the-real-crash-is-dead-ahead-as-2008-is-forgotten-2012-07-31

[xchrom]

1. Du rec. Nt

[Yeah Its Spin]

2. “just as Pets.com was for the dot-com bubble.”

So is he saying romney is behind this one too?

[kentuck]

3. I hope we don't look back and say...

"We should have fixed it when we had a chance..."

[Javaman]

5. You know we will...

humans rarely if ever plan long term solutions for society.

[JoeyT]

8. Given our history on things like this,

we'll probably look back on it and insist that it was burdensome regulation that caused the crash.

Well, not us, obviously. We're not idiots. But the people with the power to prevent the next one will probably do that.

[leftyohiolib]

4. "the future's uncertain and the end is always near"

[chervilant]

13. hmm...

Is this akin to the condescending adjuration "You're just paranoid!"? I have to wonder, you see, because those of us who predicted this economic catastrophe (well before 2008) were told that our concerns were without merit. Now, those of us who assert that the catastrophe is ongoing, and the worst is yet to come, get the proverbial pat on the head ("There, there, it's not as bad as you think!&quot .

History shows us that economic behavior continues unabated during 'hiccups' in our economic engine. Indeed, some of the most amazing inventions occurred during the Panics of 1893 and 1907 (when the Knickerbocker Trust got its pantaloons in a twist). Moreover, the uber wealthy have effective strategies for growing wealth during economic downturns.

Those of us who assert that this economic catastrophe has not yet run its course are fully aware that the uber wealthy are struggling to maintain the illusion that we're experiencing a 'recovery.' This does not make it so. Furthermore, asserting that the worst is yet to come does not mean that we are paranoid Chicken Littles. (When the proverbial caca hits the fan, I promise I won't say, "I told you so.&quot

[leftyohiolib]

18. yes the same way all the people who say the end of the world is coming will one day be right

just because you're paranoid doesnt mean they arent out to get you. the problem is with so many people saying something terrible is coming you dont know who to listen to and of course one day they'll be right and they will say , and so will you, "see i told you so."

while i fully agree with "Those of us who assert that this economic catastrophe has not yet run its course are fully aware that the uber wealthy are struggling to maintain the illusion that we're experiencing a 'recovery", but as you said it doesnt make it so
my point is something terrible is on the way and one day i will be right, people have been saying this for ever but without specifics it does no one any good

[chervilant]

22. oic

I totally misunderstood.

Of one thing I am completely confident: the next two decades will not be dull.

[reformist2]

6. Sadly, we've been in a downtrend since 2000, and only bubbles have been keeping us afloat.

First the real estate bubble, now the stimulus bubble. It pains me to say this, but nobody is coming up with long-term solutions to our economic problems - nobody on the national stage, at least.

[Egalitarian Thug]

9. The people on the national stage created these waves of economic destruction

that have allowed our national economy to be hollowed out and captured by their campaign contributors.

[CrispyQ]

12. I've lost confidence that we can change things through the ballot box.

I still maintain my ritual on the 1st Tuesday of November, but I don't do it enthusiastically or with any feeling that it will make one bit of difference.

[Bertha Venation]

15. + 1

[dixiegrrrrl]

21. Sadly, I see your point.

[Octafish]

7. The crooks never had to pay for stealing the money the first time.

Of course they'll come back for more. They own the banks.

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x4224612

[bulloney]

10. You have to have real, tangible assets behind any wealth you create.

For the past 10-20 years, our markets have just created money out of thin air with nothing tangible to back them. Hence, the bubble economies. The elite who have the inside information on when things crash and burn make out like bandits. The rest of us lose our jobs or most of our retirement portfolios, resulting in increasing concentration of our nation's wealth, which is not good.

The only way to create real, new wealth is through agriculture & aquaculture, manufacturing and mining. You're only building your economy on a house of cards when your markets are on a foundation of pyramid schemes as we've experienced in recent years.

[NuttyFluffers]

23. exactly: extract non-renewables, cultivate renewables, or add-value to tangibles. that's it.

extraction, cultivation, manufacture, that's the foundation upon which ALL services rest. the higher heavens of nothing but service economy is just that, pretending to rest on a cloud while riding a balloon; there's nothing solid, foundational, only fervent faith in one's delusion. we will keep failing until we relearn the fundamentals. and each and every time it will cost people's livelihoods and lives.

[fasttense]

11. Of course the banksters will be bailed out again. Why not?

The American people didn't want them bailed out last time either, but they did get bailed out with absolutely no strings attached.

What is going to stop our purchased politician from doing it again? What's going to stop Obama and Bohner from bailing out their campaign contributors yet again? Neither Democrat or RepubliCON parties stood up and stop the theft of our tax dollars last time. They wont this time either. Hell, Obama is right this moment developing a super secret plan to turn America into corporate heaven through the notorious trade agreement TPP.

The only thing that would stop them, is mass protest by American citizens. But Americans are just too wimpy. If only 1% of the American population would show up on the Washington mall in protest, it would scare the hell out of the politicians. But Americans just love their corporate masters and wont do a damn thing.

[1-Old-Man]

14. If you ask me the only bubble out there is Gold.

And exactly the same charlatans are taking advantage of it as did the real estate bubble.

[tjwash]

16. What would a good DU morning be without our daily avalanche of "the world is ending soon" threads?

Thanks for keeping the tradition alive

Articles like this are written mainly to scare people into accepting austerity getting shoved down our throats, so that the multi-billion dollar bonuses keep flowing among the suits at the banks.

[bhikkhu]

17. So now the bailout was 29 trillion?

every 6 months or so it seems to double, retroactively.

[dionysus]

19. a trillion trillion dollars.. it was...

[aint_no_life_nowhere]

20. Aren't the fat cats running out of things to manipulate and bubble?

Is there really anything left?

[99Forever]

24. Wish I could say this article is wrong.

But I can't.

Gonna get very ugly before this is over.