There has been continuing discussion of the Great Recession, without much understanding of the fundamental driver. I offer up the answer. Galbraith had the real answer (to all investing decisions): Genius is a rising market. Few, without insider information or a fat margin account (shorting), make money in a falling market. There are those, humble self included, who've concluded that the Great Recession resulted not so much from the banksters evil, but the now widespread availability of retail shorts. Deflation, which is all a falling market is, is self-fulfilling when everybody can drive down prices.
The fact that the market rebounded so fast and high from March 2009, as all that shorted stock was bought back is prima facia evidence.
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