Join Date: Oct 2005
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Originally Posted by Cupocity303
From what I understand, basically it was about 3 separate bubbles. The housing bubble that peaked in 2006, the financial bubble centered on leverage and exotic financial products that peaked around 2007, and then there was also a emerging markets bubble, centered on Russia, China, India, Brazil that peaked somewhere 2007 and 2nd quarter of 2008.
And in 2008 all of them started to unwind quite badly.
We're also a majority service economy. Manufacturing, technology, agricultural are all secondary. And too many people went into the wrong careers that are service based. Instead of going to engineering where they would make things, they went into financial engineering. Too many people with a MBA degree, instead of going into farming. More people go into non-productive jobs than Productive ones, where you make things and sell/export them to other countries, which contributes to the trade deficit.
So it's not just that there was all this capital allocated in the wrong things like people building too many houses, it's also that there was a enormous misallocation in human capital with people going into the wrong careers.
And then there is the whole business about interest rates Blah! I'll give this a look. You have a link to the full version?
I think the order was as follows:
emerging markets bubble, centered on Russia, China, India & South America
This occurred during the Clinton Presidency. I believe Clinton was the first to use US taxpayer money to bail out foreign markets
dot-com bubble 1995–2000 - Clinton
The Housing Bubble burst in 2007 - Bush Era
The Financial Bubble burst in 2008 - Bush Era
I sent you a files0nic link to the full
Last edited by arraamis; 11-26-2011 at 12:01 AM.