the economy

[gusl]

It's hard for me to understand how the economy can bust so badly when the fundamentals haven't changed. Is it because our economy has become so virtual, so disconnected from reality? Have our past selves essentially borrowed from our future selves until they hit the credit limit?

Why does the economic behavior of the masses seem so shorted sighted, as in: why does it appear to have such a high subjective discount rate?

Comments

[selfishgene.livejournal.com]

Re the banks : Moral hazard.