Below is the DJIA chart for the last 3 years. Note that exactly in October 2008 to the day the DJIA was in the same place. That is why I am saying that whatever has been done until now to spur economic growth it has not been working. All of the last three years’ work was done to transfer debts from private sector to public sector. Of course during this process the financial sector managed to look good for a short while and this justified more “partying”.
But now all of this is blowing up in our faces in the most horrible way. In 2008 the world was coming after a decade of good times. Now it is coming after three years of crisis.
Somehow I think this time will hurt more.