Grieg wrote:Like many people these days you assume that it must be one extreme or the other whereas in reality the stock market (and the economy) spends the majority of it's time not at those extreme ends but slowly gaining or losing ground. The cycles are normal and natural.
Actually, deep inside, I share the same optimism. Similar but only domestic crisis was seen at the US a couple of decades a go. The lessons learned lasted a few years. This time the crisis is global tho, but nonetheless, like last time, we probably end up back to the growth track eventually.
But then there's the other side as well. I wouldn't call what happened in Iceland as "normal". It might be natural to the system to behave like it did, but it sure went from the other extreme to the other in a quick fashion. The same root cause and instruments that almost bankrupted Iceland is milling in the US and in the EU as well. What happened to Iceland will happen here as well. Only that remains is how bad of a hit it will be in the end.