In 2011, we’re emerging from a decade of global “value destruction and reallocation,” or what economist Joseph Schumpeter called “creative destruction.” The bursting dot-com bubble was followed by the housing bubble. Consumers and financial institutions used unprecedented financial leverage, justified by irrational assumptions, to inflate that bubble until it, too, burst. Then, in the wake of the 2008 “financial panic,” a policy based on Keynesian fiscal stimulus required the government to take on additional debt even as consumers and financial institutions deleveraged. Now, the failure of those policies to deliver quick results has triggered a tectonic shift in thinking. Increasingly, people are realizing that “free markets” are subject to substantial real-world risks, while attempts to “manage the economy” lead to even worse problems. What have we learned? What lies ahead? What are the implications for your life, your career, and your investments? We’ll provide the answers.
- The New Consumer Psychology
- The Great Real Estate Bubble of China