This morning I was talking to an entrepreneur who has been so buried in his work that he didn’t realize what the economy looked like. Cool product, sort of Garage Band on FaceBook, but what a time to be looking for money! Citibank can’t borrow money (except from the government), so I’m pretty sure pre-revenue start-ups will be in a tough patch.
We’re really seeing the shit hit the fan in real live America. What must it feel like to spend your entire working life to put away a few hundred thousand in the old 401(k) and have a house that’s gone up so that you’re damn near a millionaire in 2006 at age 63 and ready for a happy retirement? 2 years later, you’re upside down on the house, and the 401(k) has fallen over 50%. Holy crap! That must grab one’s attention.
I continue to be amazed that no one is shooting up the banker that did the mortgage or the broker who advised to buy and hold US stocks and all the other nonsense that’s been spoon-fed by billions in advertising by the morally bankrupt finance, insurance and real estate (FIRE) businesses. It is difficult to imagine just how different the US economy will look after this debacle. We’re definitely past the age of the unregulated free market triumphalism that has haunted us since Reagan, but it’s hard to figure out what will take its place.
1 comments:
I am amazed at how many pundits continue to talk as if this next thing (bailout, etc) will turn this thing around... like by Christmas. The major news folks seem to think if they don't say it, it won't happen.
Meanwhile, I am studying what worked well in the depression...one thing seems to be to open a speakeasy.
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