Financial Crises and Real Growth
By Arnold Kling
Forget the talk of recession. The world is about to enter a new era in which miracle drugs will conquer cancer and other killer diseases and technological and scientific advances will trigger unprecedented economic growth and global prosperity.
When I think about it, I can remember a lot of financial crises in my lifetime.
–The Penn Central Railroad bankruptcy, which froze the commercial paper market
–The Savings and Loan Crisis
–The stock market crash of August 1987
–The Long-Term Capital Management collapse
–The dotcom collapse
–The post 9/11 crash
None of these turned out as badly as doomsayers predicted. Keep that in mind when you read the bearish forecasts about the impact of the subprime crisis.
Long term, my money’s on Alex.