The Financial Crisis: Watching History in Our Time
My category ‘us impending doom’ will have to be changed to ‘world impending doom’ (or perhaps just ‘impending doom’ for simplicity), as the fallout from the US crisis goes global.
Despite the horror (like my savings losing about 30% of their value from just three months ago), it’s interesting to watch what is clearly a historical moment play out.
We know the narrative of The Great Depression in the US. Coolidge, Hoover. Black Thursday’s stock market crash. Breadlines. Tent cities.
What happened incrementally over a period of years gets lost to history in this narrative.
While we don’t yet know if the crisis will result in another Great Depression (the Greatest Depression?), the day-to-day workings of the crisis should give us a moment to reflect on the historical moment.
While the people of 1929 weren’t as instantaneously alerted to the movements of the markets and their currencies, some factors would have been similar. The sinking feeling as one reads the newspaper over the latest market drop. The discussions with friends - about topics you’ve never discussed before, like if you should move your money, look for a new job. The feeling of perhaps general helplessness in affecting change, whilst watching a series of individual movements create a larger, systemic change.
We didn’t go from the Crash to tent cities in one easy movement. It took day after day after day of things sometimes getting better, but more often moving towards an unknowable bottom.
Did some people save themselves with a risky, but wise transaction? Did some families plan to move their money from banks just a day too late?
Will the history books remember the day that Iceland’s economy threatened to collapse? Or could it become lost in what might be a series of national tragedies?
This all sounds rather dramatic (and, hopefully, unwarrantably pessimistic), but what I’m interested in the the opposite of that: the day to day, banal decisions that make up what becomes history.
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