Search
 

Days of Reckoning

The 2008 market collapse was triggered from the bottom up. Today, this is a top down affair.

By Tony LoPinto | Updated on August 09, 2011

Days of Reckoning Two weeks ago I voiced my anger and utter frustration with the “Amateur Hour” going on in Washington. What sparked my concern was the public hyperbole that erupted on both sides of the aisle, and in the White House. President Obama said in a prime time news conference in his starkest terms yet that, “ the US is on the brink of a default that could trigger an economic upheaval.” Well, Mr. President, the dominos that are falling across the global financial markets have triggered a mood akin to September 2008. But this is not the same. The 2008 market collapse was triggered from the bottom up. A housing market bust triggered a day of reckoning for a host of financial ponzi schemes that were, by the way, not recognized or acted upon by Standard & Poor’s. Today, this is a top down affair, with a government incapable of getting its house in order and unable to kick-start its economy. Alas, this time around, we have a serious and growing lack of trust and a sovereign debt issue. In Washington yesterday, I observed the gang blaming the other side, and the White House scrambling, unable to calm growing fears. This time, S&P took action and downgraded US debt. Go figure. And the bureaucrats will not be able to slap down Wall Street, because the blame is squarely and firmly on the shoulders of government. Or should I say, the lack of it.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.