Monday, March 17, 2008

Greenspan looks ahead

Alan Greenspan thinks the current financial crisis is likely the worst since World War II. (Whether that translates into worst economic crisis, he doesn't say.) But he also makes this interesting point:
The contraction phase of credit and business cycles, driven by fear, have historically been far shorter and far more abrupt than the expansion phase, which is driven by a slow but cumulative build-up of euphoria.
In other words, get ready -- the crisis may be over before you know it.

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