Thanks to Wikicommons.
The present economy can be harrowing let alone worrying about the future. Luckily at The World in 2011 Festival there were economists willing to do the worrying for us.
Alex Pollock, a fellow of the American Enterprise Institute for Public Policy Research, thinks we are living in the wake of three collapsed financial bubbles:
- Real Estate
- European Dept
- Central Bank Confidence
The last broken bubble in confidence is due to a growing concern that the Federal Reserve and other central banks globally are not as omnipotent as everyone believed. Basically, Wall Street just found out that the Easter Bunny isn’t real.
Due to this Pollock predicts a “bull market in bureaucracy” as governments scramble to regulate problems they perceive in the economy.
Furthermore he doesn’t think these regulations will have much luck at reducing systematic risk in the banking system as
We can’t define it AND we don’t know it when we see it.
But hey the futures not all bad. Pollock did emphasize that the financial crisis is just waves on the ocean hiding the current of progress underneath.
