Comments on: Savers shoulder the inevitable burden of bad loans http://blogs.reuters.com/great-debate/2010/11/05/savers-shoulder-the-inevitable-burden-of-bad-loans/ Sun, 19 May 2013 08:24:46 +0000 hourly 1 http://wordpress.org/?v=3.4.2 By: yr2009 http://blogs.reuters.com/great-debate/2010/11/05/savers-shoulder-the-inevitable-burden-of-bad-loans/comment-page-1/#comment-33385 yr2009 Fri, 05 Nov 2010 14:31:08 +0000 http://blogs.reuters.com/great-debate/?p=8574#comment-33385 "If true, real GDP will be around 15 percent lower in 2018 than it would have been in the absence of the crisis. Together with the extra millions of unemployed, that is the measure of the real cost of the financial crisis." The crisis was just the death by natural cause of the financial bubble that helped create the false prosperity reflected in past great GDP figures. You can call it 'false growth'. The scary part is that the same mentality, interests and politics, which inflated that bubble are still dominant - both in WS and in DC. “If true, real GDP will be around 15 percent lower in 2018 than it would have been in the absence of the crisis. Together with the extra millions of unemployed, that is the measure of the real cost of the financial crisis.”

The crisis was just the death by natural cause of the financial bubble that helped create the false prosperity reflected in past great GDP figures.
You can call it ‘false growth’.

The scary part is that the same mentality, interests and politics, which inflated that bubble are still dominant – both in WS and in DC.

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