Steve Forbes, creator of Forbes magazine, is suggesting that the worst of the credit crisis is over. Forbes spoke recently with BBC correspondent Matt Frei about the credit crisis. In summation, Mr. Forbes suggested that that worst of the credit crisis has passed and governments have reacted in an appropriate way, infusing hurting banks with influxes of cash to equalize their account balances. As long as governments don’t make any more mistakes, things should be ok.
He cautions that fear is the only danger which brings back the famous line, “The only thing to fear is fear itself” to my mind. As long as people continue to participate in the economic markets and invest, things will be fine Forbes suggests. However, if people panic and hold onto their money there will be trouble in the future. This optimistic outlook is sure to be encouraging for many; it is safe to say the Forbes can be considered an expert on economic affairs. It is refreshing to see an economist predicting the light at the end of the tunel, so to speak.
I find it interesting that Forbes commented on fear being a major issue: I’ve felt since the beginning of this affair that the economic panic is more a state of mind that an actual event. Some major industries have hurt (like the auto industries, which I have previously commented on)and there have been some strange side effects (West Ham Football Club has been put up for sale because its owner lost his investments in an Iceland Bank that went under). Fear is a strong motivator of human actions, and in this case fear has prompt a large amount of panicked worry, that I feel may be looked back upon in a few years with some embarrassment.
Let’s all hope I’m not wrong.
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