I was at Yorkdale Mall yesterday. Going through to see if I can find a peacoat. Does not seem to me that people are forgoing their Christmas shopping anytime soon. Economic crisis? What economic crisis? Yorkdale was packed and people were spending.
That's why recessions are sometimes blown out of proportion. People aren't affected as much as economists say. We have a credit crisis, but the only spending that's affected is spending on big items - houses, cars, furniture.....are standards of living going to plummet because you can't buy a new car?
If anything, it's a great market for people looking to buy their new houses. Real estate is plummeting, and it's a buyer's market. For first time buyers that is - what good will lower house prices do you if the house you're trying to sell is dropping as well?
On a household level, people just aren't that affected by macro issues. Unless I see barren malls and empty restaurants, I won't believe any of this crisis nonsense. The economy will right itself. Unless of course, the government overreacts as usual, and starts to implement more centralised regulation. You see, the Communist system of market control does work!
Of course, I'm not saying this crisis is soft. I've seen my investments go to shit. So this is a serious situation. But I'm a believer in the free market system. What's wrong is the greed that's pervaded the North American financial environment. Dammit.......if we were in China, these people would be guilty of capital crimes. Execute a couple to set an example. See who still wants to f*ck around.
Economists are like historians. They come up with all these impressive theories explaining what happened after the fact. They're useless when shit is actually happening. Give them 10, 20 years and they'll be able to provide a great analysis, but as far as advising people what to do in the moment? Absolutely useless. Yes, I do have a degree in Economics - the more you learn, the more pretentious the discipline seems.