BusinessWeek ran an excellent article in the 3/19/09 issue, titled “Stock Markets: When Will the Bull Return?” The article is on the current crisis and compares it to past bear markets. One of the most interesting features is the introduction of some new research that studied other market crashes caused by banking failures, rather than business cycles. Our current crisis is the result of a banking failure, rather than a business cycle downturn, making it different from most previous bear markets. The only other recession caused by a failure of our banking system was 1929-1932.
I will be using some of the information from this article in our town hall meeting on Thursday. I would recommend everyone read this article. Click here.