Another Cassandra: Jeremy Grantham wrote
this article in July of 2007, before the market had started to come down.
...as yet the equity market seems totally unaffected with volatile and risky stocks still making the running. Although the brontosaurus has been bitten on the tail, the message has not yet reached its tiny brain, but is proceeding up the long backbone, one vertebra at a time.
I have often been too bearish about the U.S. equity markets in the last 12 years (although bullish on emerging equity markets), but I think it is fair to say that my language has almost never been this dire. The feeling I have today is that of watching a very slow motion train wreck.*
Seems to me capitalism has been put to the test again. We already have had recessions in the past but most of them were brought about by war or disease. This current recession is brought about by 'greed' and unnecessary wealth accumulation.
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