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  • Why We Need a Recession  [View article]
    Gisi,

    As I alluded to in the article, I believe that the easy money policy brought out the worst in us by enabling us to become self-indulgent. If you study history you notice that people adapt to prevalent conditions after only a few years of their existing; it seems to take those few years for paradigms to be broken and new ones accepted. Two and a half decades of easy money made us think life was easy and it was time to have fun and enjoy it. Few of us remained skeptical and didn't over-indulged, but those of us remained skeptical were the first to see the trouble brewing.

    I doubt any other nation or people would have maintained their sanity through 25 years of "easy money, anything goes".

    The "stock market magic" paradigm is still alive in spite of much evidence that it should be dead; people can't wait for an excuse to get back into the stock market and get back to easy money. The other prevalent paradigm right now is the "US Dollar and US Treasury safe haven" play. These too will die, but it will take time. My next article will probably be about paradigms.
    Jan 08 23:36 pm |Rating: 0 0
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