Wildman Jim Cramer has written absolutely the best piece I've seen to date on the Wall Street meltdown---how we got there, what happened last week and where we're headed. It takes a bit of time and concentration, but well worth the effort. We owe it to ourselves and children to try to understand as best we can causes of this mess so we can avoid some of it in the future.
My only criticism of the piece is that it completely ignores the devalued dollar's contribution to the formation of the commodoties bubbles---housing, gold and oil, and the rise in inflation. I believe, as my friend John Tamny at RealClearMarkets, that this Bush Administration policy is at the heart of our economic woes.
I'll be back with more commentary later. Meanwhile, I'm heartened to know that Cramer is not fond of Hank Paulson (my least favorite of the bunch), Ben Bernanke or Alan Greenspan. (me neither).
Cramer opines, rightly I believe:
I don’t care what the stock market did late last week or what it does in the next few days. That age, the Master of the Universe Era, is over. Too many people were too badly burned by taking too much risk to repeat that trick again. That has practical implications for everything from private schools, Range Rover dealerships, and Sotheby’s auctions to SAT tutors, newsstand operators, and shoeshine guys. It will also have an impact on the Zeitgeist. Greed is good? Not anymore. I’m nobody’s innocent, but I think we’ll see a more chaste culture emerge from all of this, on Wall Street, and perhaps beyond. Caution will be the new daring. Safe will be the new sexy.
Yes, Jim, it's true for Wall Street. But as you rightly note in your article lots of people on Main Street stayed the fiscal conservative course and will be rewarded for not running with the fast crowd.
Wasn't that basically what our mothers taught us in junior high?