Saturday, February 14, 2009

Predicting the Crash: BusinessWeek

This remarkably prescient commentary comes from a BusinessWeek article published in 2000:

"But to many sober economic historians, the current situation is too
reminiscent of the economic boom of the 1920s, when inflation was low and
productivity was high. Meanwhile, led by the new technologies of the
day--automobiles and electronics--the stock market soared. "There are strong
parallels, all of which make me worry," says Barry Eichengreen, an economist at
the University of California at Berkeley who is a leading expert on both the
Great Depression and the international financial crises of the 1990s. "If you
believe history repeats itself, all the ingredients are there for a stock
market-led downturn."

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