Thank you for an informative and well written article.
I will join the blame chorus!
My blame falls upon the prevailing economic understanding.
The theories have not been able to mirror what has happened in the real world. Consequently the economic indicators did not flash warning lights as the gap between “paper value” and real (production) value gradually widened.
Of course somebody exploited this by selling various sorts of junk, but had the economic understanding and the economic indicators been functioning there would not have been an overwhelming amount of loos cash that chased ever higher returns, returns that were without connection to the rate of real value creation.
The old industrial societies have gradually lost competitiveness ever since globalization started.
We look at share prices as indicators of national economies, but the firms and their shares are international!
It is today scientific documented that only those firm activities that are situated in a country benefit that country!
The basis for prosperity has seeped away from our national economies!
For a deeper understanding of this read:
http://unifiedscience2.blogspot.com/2011/07/origin-of-long-term-growth.html
No sane doctor would just continue giving blood transfusions without doing anything about the injury that causes the continued bleeding!
There are still an awful lot of loos “paper value”/money and debt out there, and as long as interest rates are kept unrealistically low the markets will continue to gyrate wildly.
Continuing to keep interests artificially low is the same as robbing ordinary people and the comming generations.
No sane doctor would just continue giving blood transfusions without doing anything about the injury that causes the continued bleeding!
