Global financial collapse timeline
April 29, 2010Jon Brooks Comments OffFrom the Real-World Economics Review Blog, a timeline of warnings and events going back to 1995 and leading up to the financial crisis of the last few years. Some early warnings from various economists:
Sept, 2001
“the new housing boom is another rapidly inflating asset bubble financed by the same loose money practices that fuelled the stock market bubble.”
Aug, 2002
“While the short-term effects of a housing bubble appear very beneficial—just as was the case with the stock bubble and the dollar bubble—the long-term effects from its eventual deflation can be extremely harmful, both to the economy as a whole, and to tens of millions of families that will see much of their equity disappear unexpectedly. The economy will lose an important source of demand as housing construction plummets and the wealth effect goes into reverse. This will slow an economy already reeling from the effects of the collapse of the stock bubble of 1999, … Unfortunately, most of the nation’s political and economic leadership remained oblivious to the dangers of the stock market and dollar bubbles until they began to deflate. This failure created the basis for the economic uncertainty the country currently faces … [which] will be aggravated further by the deflation of the housing bubble. This process will prove even more painful if the housing bubble is allowed to expand still further before collapsing.”
2003
“I am very pessimistic. We are heading into something in the world which is worse than what we experienced in 1982. It will be the worst recession since the Second World War.”
“The reckless financial policies of leading western powers in the last two decades make it likely that the next seismic debt crisis will be in America, not Argentina. It can be avoided . . . only by serious efforts to bring regulation and balance to the international economy.”
“There will be a collapse in the credit system in the rich world, led by the United States.”
