3 ms·

> This is why most economists' reaction was "nobody could see it coming" and their policy recommendation response to the crisis was "even more of the same, plea

> This is why most economists' reaction was "nobody could see it coming" and their policy recommendation response to the crisis was "even more of the same, please" (deregulation, desupervision and de-facto decriminalization). The aftermath of the financial crisis seems to have been handled remarkably well though, don't you think? At least in the US the economy is doing fairly well and the deleveraging was handled admirably.

caseysoftware 12y ago
I think the metrics are doing well in that unemployment is down, the stock markets are up, and housing prices have mostly stabilized. Unfortunately, that ignores: - the labor participation rate is dropping steadily.. because long term unemployment is up. - the Fed has pumped $1T (yes, trillion) into the market each of the last 5 (6?) years. - wages have been stagnant and have only now reached 1998 levels. - education - previously a ticket into the middle class and beyond - has been devalued by poor standards but simultaneously the price tag has increased dramatically.
- digi_owl 12y ago
  But then what defines a unemployed have been games to hell and back...
ggchappell 12y ago
This seems to be true from a short-term perspective. From a more long-term perspective, factors that led to the crisis have not really been dealt with at all. Dodd-Frank is hardly Glass-Steagall. The revolving door between finance and government is still spinning. Regulatory capture is in full swing. And that means -- if I might be prophetic for a moment -- that it's all going to happen again.
crdoconnor 12y ago
>The aftermath of the financial crisis seems to have been handled remarkably well though, don't you think? Hell no. It was used as an excuse to shovel money into the pockets of the ultrawealthy. >At least in the US the economy is doing fairly well By what measure? Because if you're going to count employment, you should factor out the people who used to have decent middle class jobs and are now scraping by working at walmart.

caseysoftware 12y ago

I think the metrics are doing well in that unemployment is down, the stock markets are up, and housing prices have mostly stabilized. Unfortunately, that ignores: - the labor participation rate is dropping steadily.. because long term unemployment is up. - the Fed has pumped $1T (yes, trillion) into the market each of the last 5 (6?) years. - wages have been stagnant and have only now reached 1998 levels. - education - previously a ticket into the middle class and beyond - has been devalued by poor standards but simultaneously the price tag has increased dramatically.

digi_owl 12y ago
But then what defines a unemployed have been games to hell and back...

ggchappell 12y ago

This seems to be true from a short-term perspective. From a more long-term perspective, factors that led to the crisis have not really been dealt with at all. Dodd-Frank is hardly Glass-Steagall. The revolving door between finance and government is still spinning. Regulatory capture is in full swing. And that means -- if I might be prophetic for a moment -- that it's all going to happen again.

crdoconnor 12y ago

>The aftermath of the financial crisis seems to have been handled remarkably well though, don't you think? Hell no. It was used as an excuse to shovel money into the pockets of the ultrawealthy. >At least in the US the economy is doing fairly well By what measure? Because if you're going to count employment, you should factor out the people who used to have decent middle class jobs and are now scraping by working at walmart.