The Upside of a Down Economy
Jonathan Cloud October 12th, 2008
There’s not much good news in the slow-motion global market crash we’ve witnessed over the past couple of weeks, but what is positive is the growing recognition that what matters is not the mostly fictitious Wall Street economy of credit default swaps and mortgage-backed securities but the “real” economy and the disastrous consequences of deregulation for the folks on Main Street. The fact is, as NYU economist Nouriel Roubini has pointed out, ordinary people have pretty much run out of money, stopped buying cars and homes, watched their retirement savings get cut in half, and begun to pull whatever they have left out of the stock market. We are witnessing a worldwide panic that will not be halted by Wall Street bailouts or technical manipulations of the money supply; we need fundamental reform of the economic system, and a reinvestment in infrastructure, jobs, and sustainable energy and other technologies.