RE:Confidence Crisis"I remember all the armchair experts freaking out, '' everything is going to zero '' ...or '' it's different this time ''."
Last time governments could lower interest rates several points to zero to stimulate demand and deficit spend. They won't be able to lower interest rates any further in the next downturn and they are already up to their eyeballs in debt. There will be no cushion from fiscal or monetary policy in the next downturn. They will have to cut spending into the next downturn deficits soar. Total debt is also higher the '08 crisis.