The New Economy

I am no economist, and I do not consider myself an expert at managing my own personal finances, but I would like to offer a few observations about this new economy we are entering. The one that is global, lightning fast, and crucial to our ability as humans to share our stories with one another.


In 2008, when the global meltdown occurred and it was primarily due to the irresponsibility of big banks and Wall Street barons who were leveraging against what amounted to valueless mortgages, we all gained. Of course, the short term loss was great, and my heart goes out to people who lost their retirement money, and those who are still jobless. But perhaps some who were once laid off have gotten even better jobs since!

Anyway, my optimism is not baseless. If there was no internet, I might be a bit more pessimistic about our prospects. After all, it was not until the war effort ramped up in the 1940s that we really ever got out of the (first?) Great Depression. But this time around, even as the world was seemingly collapsing around us in 2008 (so far as stock values indicated), I spotted a glimmer of hope. 

Why? Because this is what markets do: they respond to feelings of confidence that people have. I sensed that because of the internet, and our increasing reliance upon it as a communication tool, we would be better equipped to restore a shared sense of confidence. Now, the internet has not done a whole lot at this juncture to save the housing market, and truth be told its' prospects will probably continue to be dim for another year or so, but rental markets are gaining some dynamism and we need not mourn the loss of big houses if the families who once occupied them are happy somewhere else. 

Additionally, there is reason to believe that this Great Recession will finally begin to dry up in the next year or so: the world is becoming transparent, so value will inevitably become standardized.