| bigjon said: Ok, my point was this crash is not any worse (so far) than the 1987 crash. We recovered from that just fine. We had a recession in 90-91, but we then made it to the 90's. The feds job is to minimalize the lows of the business cycle, they failed this time. It was be a bad recession, not a depression. If you look back at 1929 you will few similarities... the only common factor is market losses. (a in the 20's they did have isolated housing market crashes)
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Recessions are a healthy portion of every ecconomy and without them investors don't incur the moral cost from taking on large foolish risks. Had the federal reserve not reduced interest rates to record lows to "minimize the lows" from the dot-com crash it is likely that we wouldn't have faced as large of a problem in the financial sector due to the collapse of the sub-prime lending market. It is the Federal Reserve's moronic secondary mandate to "minimize the lows of the business cycle" which has gotten us into the mess we're in today!
