All Posts Tagged With: "stock market collapse"

The nice thing about an economic depression is that it cures a depression. Stocks collapse. Businesses go broke. Speculators jump from tall buildings. Wages fall. Prices drop. Interest rates sink. And then, with the cost of assets, labor and credit at rock-bottom levels, the scrap dealers, recyclers and entrepreneurs get to work.

Much of the recent stock market collapse can be explained by panicked forced selling, rather than fundamentals. Sure, we’re going to have a long, deep recession – especially in certain sectors of the economy. But you must also keep in mind that stocks are denominated in paper money. Central banks and governments are fighting this credit crunch with the greatest wave of inflation in history…