So, I think we are in this economic mess because of the Dutch.. they seem to have invented economic hysteria back in 1637. But, it wasn’t houses back then.. it was.. wait for it.. TULIPS. That’s right, everyone poured all over their money into tulip speculation.. some Tulips were worth more then a year’s wages. Of course, the bottom fell out when everyone woke up one day and realized they were just FLOWERS.
And so it goes.
I would suggest everyone read this: http://en.wikipedia.org/wiki/Great_depression
Especially before you start crying about the government spending $700B bailing out banks (and insurance companies (AIG) (Banks use insurance to store money)). This is exactly what Government didn’t do last time… and Ben Bernanke has spent most of his life studying the Great Depression.. strangely enough. Right or wrong, for better or worse.. that is what we are doing.. we shall see..
Anyway. This a seriously complex problem that I know very little about.. but I do find it interesting.. especially the fact that no one seems to know anything about it.
