William Quincy Belle: Robert Reich: The Next Crash

Alarmist? Realist? I compare the naysayers to Alfred E. Neuman: "What, me worry?" Oh, so that's what an iceberg is. (My Titanic reference)

Published on Oct 25, 2018 by Robert Reich
YouTube: Robert Reich: The Next Crash (4:22)
Robert Reich explains why there will be another economic crash.

Mr. Reich provides an article on his web site detailing the contents of the video.

Robert Reich.ORG - Sep 1/2018
The Next Crash
September 15 will mark the tenth anniversary of the collapse of Lehman Brothers and near meltdown of Wall Street, followed by the Great Recession.

Since hitting bottom in 2009, the economy has grown steadily, the stock market has soared, and corporate profits have ballooned.

But most Americans are still living in the shadow of the Great Recession. More have jobs, to be sure. But they haven’t seen any rise in their wages, adjusted for inflation.

Many are worse off due to the escalating costs of housing, healthcare, and education. And the value of whatever assets they own is less than in 2007.

Last year, about 40 percent of American families struggled to meet at least one basic need – food, health care, housing or utilities, according to an Urban Institute survey.

All of which suggests we’re careening toward the same sort of crash we had in 2008, and possibly as bad as 1929.

more... The Next Crash

My Opinion
Economics is a complicated subject. However, considering the GOP's tax cut, the lack of changes in regulations after the last crash and the current administration's mantra of clawing back regulations, the market seems to be ripe for a free-for-all freefall. When and under what circumstances? Despite President Trump's assurance that things are humming along tickety-boo, I have more confidence in Mr. Reich's ability to assess the economy. In fact, the entire GOP's mantra of Reaganomics with its trickle-down economics completely ignores this telling summation of the Reagan presidency: In the eight years Reagan was in office, the United States went from the world's largest creditor nation in the world to the largest debtor nation. Think about that. Think about that very carefully.

References

Wikipedia: Robert Reich
Robert Bernard Reich (born June 24, 1946) is an American political commentator, professor, and author. He served in the administrations of Presidents Gerald Ford, Jimmy Carter, and Bill Clinton. He was Secretary of Labor from 1993 to 1997. He was a member of President-elect Barack Obama's economic transition advisory board.

Reich has been the Chancellor's Professor of Public Policy at the Goldman School of Public Policy at UC Berkeley since January 2006. He was formerly a professor at Harvard University's John F. Kennedy School of Government and professor of social and economic policy at the Heller School for Social Policy and Management of Brandeis University. He has also been a contributing editor of The New Republic, The American Prospect (also chairman and founding editor), Harvard Business Review, The Atlantic, The New York Times, and The Wall Street Journal.

Reich is a political commentator on programs including Erin Burnett OutFront, CNN Tonight, Anderson Cooper's AC360, Hardball with Chris Matthews, This Week with George Stephanopoulos, CNBC's Kudlow & Company, and APM's Marketplace. In 2008, Time magazine named him one of the Ten Best Cabinet Members of the century, and The Wall Street Journal in 2008 placed him sixth on its list of the "Most Influential Business Thinkers". He was appointed a member of President-elect Barack Obama's economic transition advisory board. Until 2012, he was married to British-born lawyer Clare Dalton, with whom he has two sons, Sam and Adam.]

He has published 18 books, including the best-sellers The Work of Nations, Reason, Saving Capitalism, Supercapitalism, Aftershock: The Next Economy and America's Future, and a best-selling e-book, Beyond Outrage. He is also chairman of Common Cause and writes his own blog about the political economy at Robertreich.org. The Robert Reich–Jacob Kornbluth film "Saving Capitalism" was selected to be a Netflix Original, and debuted in November 2017, and their film Inequality for All won a U.S. Documentary Special Jury Award for Achievement in Filmmaking at the 2013 Sundance Film Festival in Utah.

Wikipedia: Financial crisis of 2007–2008
The financial crisis of 2007–2008, also known as the global financial crisis and the 2008 financial crisis, is considered by many economists to have been the worst financial crisis since the Great Depression of the 1930s.

It began in 2007 with a crisis in the subprime mortgage market in the United States, and developed into a full-blown international banking crisis with the collapse of the investment bank Lehman Brothers on September 15, 2008. Excessive risk-taking by banks such as Lehman Brothers helped to magnify the financial impact globally. Massive bail-outs of financial institutions and other palliative monetary and fiscal policies were employed to prevent a possible collapse of the world financial system. The crisis was nonetheless followed by a global economic downturn, the Great Recession. The European debt crisis, a crisis in the banking system of the European countries using the euro, followed later.

In 2010, the Dodd–Frank Wall Street Reform and Consumer Protection Act was enacted in the US following the crisis to "promote the financial stability of the United States". The Basel III capital and liquidity standards were adopted by countries around the world.

2019-01-06

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