Well Wall Street Carnage

[kandrathe]

I was talking about the scale of the crisis. it wasn't very clear you are right). I think it is something new.

I don't think so. My view of this crisis is that freedom sometimes has consequences. Banks and companies have the freedom to fail. What is unfortunate is that at some point, failure at the very largest of companies will bring down the entire house of cards. This article in the Washington Post high lights more of the technical aspects of what caused this crisis. Something I hadn't realized was how much China and it's monetary policy has affected the global economy. In this case the false illusion of rapid growth with low inflation due to China's under priced currency and goods. The Greenspanian policy of allowing asset "bubbles" (e.g. Tech Stock, Mortgages) to occur, and then correct after popping may not be as sage as once thought.