Posted by
Andrews on Tuesday, November 25, 2008 3:39:21 PM
I have been saying for some time that the current economic downturn is hardly the next great depression, not even comparable to the Savings and Loan crisis. It has been overhyped by the media, and politicians have played their part as well, but by and large this "crisis" is largely a media creation.
Well, I find that I am in good company.
The most recent article by Thomas Sowell says essentially the same thing. Not that it is surprising, most people with a real understanding of the economic forces at play, and without a political agenda, are saying the same thing.
Still, considering how many supposed conservatives are jumping on the crisis bandwagon, abandoning their allegiance to the free market and calling for an end of deregulation and
the adoption of a Nixonian regulatory Republicanism, I have to say it is nice to have my impression of the crisis confirmed by a first rate mind.
POSTSCRIPT
This is hardly a comprehensive list, but here are many of my posts on the supposed "crisis", going back to the first stirrings of trouble in the housing market:
And you got rich?
A Quick Thought On The Housing "Crisis"
Two Perspectives
Inventing a Crisis
Inventing a Crisis II
Inventing a Crisis III
And Here It Comes Again
To Correct Debra Saunders
Another Thought on the Housing "Crisis"
Hooray For Phil Gramm!
Confirmation
I Hate Election Years
If We Took Them Seriously...
The Crisis Ratchet
Hooray For Debra Saunders!
Maybe It Isn't a Crisis After All
Quick Economic Update
(Though my hope that people would stop panicking proved a bit too optimistic)
An Unfortunate Consequence
Bringing Some Good Out of Our Financial Problems
Direct Your Anger Properly
Some Brief Thoughts on the Bailout
Living Beyond Their Means
A Question
Face The Music, Don't Try to Buy Votes
A Final Comment on the Futility of a Bailout
A Question For Republican Politicians
$700 Billion?
Asking Yet Again
Clarification of My Opposition to the Bailout
Greed
A Little More On CEO Salaries
Greed Part 2
A Bit Disappointed
Laughable Talk About the Bailout
A Short Question
The Excuse Making Begins
More Bad Excuses
More Bad Excuses II
Well, It Was Bound to Happen...
Repeating the Errors of FDR
One More Senseless Defense
Doing Nothing
A Question
Economic Question
It Is Ending Already
(Though my predictions were too optimistic, both on the economy and the restraint shown by the Fed)
How Does That Work?
It Is Nice To Get Confirmation
Are You Serious?
I Think I Finally Got It, and... Eh
And the Excuses Begin
Things You Won't Hear on the News Until Wednesday
(And things that remain true, despite allt he gloomy news coverage)
Our Financial Problems
Critique of Krauthammer
I Must Keep Asking
Monetary Issues Made Simple Part I
Et Tu, Town Hall?
Thanks For Saving My Stocks
I am sure you can find more by following the links within these posts, so if I missed any they should not be hard to find.
POSTSCRIPT II
What makes this "crisis" truly tragic is that by hyping the "crisis" the media has driven many small investors from the market, suppressing prices and creating the crisis they wanted. However, as many of these small investors jumped ship when the market was approaching bottom, they lost quite a bit, money they could have retained by simply weathering the storm. I know it is scary to see your investments drop to 60% of their value a year ago (though it is a great time to pick up some bargain stocks), but the media is doing no favors by convincing small investors their stocks will be worthless this time next year. Though I suppose it does help sell advertising time. So much for their much vaunted role as "public servants". If they are willing to rob people of their life savings to create a crisis to help circulation (and maybe to help elect their chosen candidate), it is pretty hard to argue the media is on the side of the little guy.