Thus it's always good to periodically examine one's premises. It's made me more certain than ever that we as a nation have drifted so far from rational economic moorings that a monumental financial disorder cannot be avoided. Worldwide financial risk seems high. But indifference to the potential effects on U.S. markets is a hallmark of U.S. investors. People naively believe that in this new era, markets will always recover.
Bear markets are a thing of the past.
A little fine tuning of interest rates by an all-powerful Federal Reserve can cure any economic ill. Alan Greenspan is a modern oracle. In reality, lowering interest rates may temporarily forestall the inevitable bust but not necessarily for long. Mr. Greenspan may still be the scapegoat for the greatest crash in history. Today, Austrian economics remains a little known economic school.