<!––>Kiplinger’s has put together a list of 10 things that you, fair consumer, can expect from our new post-wall-street-apocalypse economy. Should you be scared? Maybe.
Here’s a quick summary of the article, which can be found here:
1. A much less leveraged economy — Cash will be the thing to have.
2. More modest rewards — Less risk-taking means slower growth, slower appreciation of property value, etc.
3. A feast for bottom fishers — If you’ve got patience and cash, there will be a feast for you amongst the wreckage.
4. Fewer financial firms – Big banks are swallowing the smaller ones.
5. More government oversight of financial markets. — They’re gonna be watching.
6. But a revival of private financial firms – Kiplinger’s doesn’t think that investment banks are gone for good.
7. Simpler forms of securitizing debt – Nor do they think that the secondary mortgage market is gone for good. They say it will be back, but it won’t be as ‘exotic’
8. Greater scrutiny of executive compensation — Shareholders are annoyed. Very annoyed.
9. Higher taxes and/or a bigger federal deficit – Someone has to pay to run the bilge pump.
10. Higher long-term interest rates — You saw that one coming, didn’t you?
Hey, it turns out that the new post-apocalyptic economy is pretty much just the old traditional economy — but with a debt hangover.