WE’RE ALL DONE! The latest Krugman editorial… March 22, 2008
Posted by unemployedalcoholic in Business, Domains, Investing, economy.add a comment
Brilliant economist and op/ed. columnist for the New York Times Paul Krugman has a way of dumbing down comlex, overarching economic issues into brief and elegant commentaries so that even intellectually challenged, ADD people like myself can get a whif of what the hell is going on and which way the financial winds are blowing. The latest article is a short and insightful discussion on where we currently stand economically, and where we may end up a few months from now, unless serious economic policy shortfalls and banking trust issues are dealt with: Partying Like It’s 1929.
What Krugman is basically saying, is that the economic failsafes implemented by Congress after the Great Depression have either been legislated away, or circumvented by clever financial engineering. What Krugman fears, and what we should all indeed fear, is that the current credit (i.e. confidence) crisis continues (it already started with last week’s BSC fiasco) as we enter a catastrophic period of failing trust (the worldwide economy at this point is just one big system of trust, of course), and potential bank runs. Neither is Krugman very supportive of the measures currently being taken by Paulson and major banks to avert the looming economic disaster as the lessons of the past have been forgotten or ignored.
More on the same: A Demon of Our Own Design (on the perils of financial innovation)
Another great Krugman editorial about the subprime crisis from October 2007. (Gone Baby, Gone)
This is afterall, supposed to be a blog dedicated to the domain name industry, no? So, what do you think this means for us fellow domainers? It certainly seems like the worldwide economic situation will get worse before it gets better, but when the storm does blow over (sooner or later everything blows over…), will we come out on top with our potentially priceless yet currently undervalued (and UNDERDEVELOPED) assets, or will our industry backed by nothing but computer code, virtual realities, and ambitious dreams fall and crumble once more, and maybe this time for good?
