Instead we are now living in the middle of a full-blown economic meltdown. And what is worrying is that unlike 1929, 1987 and 2008, there is a strong and immediate underlying fundamental economic cause rather than a malfunctioning of the financial system, to which those crises can, in the first instance, be attributed.
That’s why it’s not that much of a problem. The facts have changed, prices change, and?
We know why they’ve changed too. We even know that once the cause has passed – as it will – then there will be a recovery. The very fact that we’re not standing around wondering what the hell just happened is why there’s reason to be cheerful. Once it has all passed there will be slightly fewer people, we’ll have the same amount of capital we did have, the same level of knowledge and so on.
No, I don’t claim the interim is going to be all that pretty but the fact that we know what the cause is is exactly what makes this time different. Better different rather than worse different.