‘Don’t Panic, Stocks are Safe!’

Published 10 May, 2012, 01:45, CEST+1 | By the trader

Just a reminder. Economist Professor Irving Fischer explains that the stock market crashed due to high expectations- not high stock prices. Too many speculators were playing the stocks with borrowed money, resulting in a run on the banks. 80 years later, the banks are speculating with borrowed money and investors are running away from them.