Monday, August 10, 2009
Abramovitz said it....
This is from my first book....Moses Abramovitz said this 11 years ago. It is creepy in its prescience.
Parker: What are some of the lessons of the Great Depression that seem to be forgotten today or have to be continually relearned?
Abramovitz: Well, I'd say beware of a bubble economy. Now, I think it's an immensely healthy thing that this notion that you have to beware of a bubble economy has percolated so broadly, however much people are increasing their commitment to the stock market and to real estate, they all do so uneasily because they realize this doesn't have to last. That's something which was absent toward the end of the 1920s. There, the notion became dominant, a notion that is not absent today, that we're living in a new era in which the old problems of economic fluctuations are behind us, and we have a new type of economic expansion. What they then called "profitless prosperity".
This is me now talking in 2009. If only we would have listened. Don't worry, it is going to happen again. It is just a question of time.