"The valuation of the stockmarket is an important national – and international – issue. All of our plans for the future, as individuals and as a society, hinge on our perceived wealth, and plans can be thrown into disarray if much of that wealth evaporates tomorrow. The tendency for speculative bubbles to grow and then contract can make for very uneven distribution of wealth. It may even cause many of us, at times, to question the very viability of our capitalist and free market institutions. It is for such reasons that we must be clear on the prospect for such contractions and on what should be our individual and national policy regarding this prospect."
Friday, 18 July 2008
Looking at the violence that kicked off as a result of the drop in the market reminded me of this bit from Irrational Exuberance: