Out of pure spite, I just did a check on my earlier mentioned savings scheme. As you may recall, I originally placed 75.000 SEK in early 2002 and after peaking at 90.000-something, its value had fallen to 63.000 SEK on 6 October and 57.000 SEK on 10 October. The latest reading was 54.775 SEK – I suspect that Friday’s bloodbath isn’t included in this – to which we should add that the Swedish krona has taken a bit of a hammering because the krona, unlike the Danish krone, isn’t pegged to the Euro.
Anyway, if a serious economist reads this, I have a question: I’m not an economic historian, but I recall reading somewhere – Galbaith’s “The Great Crash”? – that dramatic fluctuations (including big rises in stock indexes) are part of the kind of crisis we are in – this was why I didn’t put too big an interest in the triumphant reports of stock market resurgences in later weeks. Am I right? And: What exactly causes these bust-and-boom-and-bust movements?
Okay, that was two questions.
PS: Just for the record: These are not my only savings. Besides pensions schemes, I have some 100.000s tucked away in other schemes. And I live in a rented apartment.