Searching for a way to describe the current stock market meltdown? Call it the “Panic of 2008.”

In the past century, the world has seen countless financial crises, economic downturns, and market crashes. But the last major event to be called a ‘panic’ was the Panic of 1907.

If ever it were appropriate to revive the term “panic,” this is the time. (Steverman, Businessweek)

The incessant multi-year propaganda campaign about recession and ‘total failure’ is taking its pound of flesh. The ‘feel good’ efforts to make housing a right has been the primary stimulant.

Subrahmanyam is more convinced the markets are behaving irrationally. It’s not as if we’ve had a nuclear war and “real” assets were destroyed, he says. Rather, problems are in the financial sector, not the “real” activity in the rest of the economy. “The real, nonfinancial base of the economy is still fairly strong,” he says—far stronger than during, for example, the Great Depression.

It is like watching the Red River stampede caused by a sugar loving cowboy – when conditions are right the stampede is easy to start and difficult to stop. It takes a long time to recover and get things back to normal.

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