If there's been a crisis in a market, you don't tend to have a new crisis in that market until the people who went through the last crisis aren't in the system anymore.
Sentiment: NEGATIVE
In a crisis, markets always look to see who is the next-worst off and proactively begin shying away from them.
The markets are much more interested in America's long-term trajectory than they are in feeling that there is an acute short-term crisis.
A long-term crisis, after a certain point, no longer seems like a crisis. It seems like the way things are.
What we need to understand is, one, that there are market failures; and two, that there are things like asset bubbles and irrational exuberance. There are periods of booms, bubbles, and manias. These things, if left to themselves, can lead to crashes, to busts, to panics.
In all of the movies and films you see, people are always in crisis because that's what we watch. We watch them deal with crisis and resolve it.
People often panic when the markets go down and sell off their stocks - but then they aren't in the game when the markets are doing well.
Not every business cycle has a financial crisis. Frequently they do.
There is a basic lesson on financial crises that governments tend to wait too long, underestimate the risks, want to do too little. And it ultimately gets away from them, and they end up spending more money, causing much more damage to the economy.
Some things never change - there will be another crisis, and its impact will be felt by the financial markets.
Crises are part of life. Everybody has to face them, and it doesn't make any difference what the crisis is.