Another term for it is Ponzi scheme…
…Or house of cards.
I just read a TERRIFIC article in, of all places, Business Week, that’s the best—nay, maybe the only—insightful look into the world economic crisis that I’ve seen. Apparently even some business-types are starting to see what I’ve been saying since college in the late 80s—this whole fucking “globalization” thing—they make everything and we provide financial “services,” shuffling paper like a Vegas dealer washes the deck—is a HOUSE OF CARDS. Hello!?! Isn’t this something a twelve-year-old could figure out???
It’s amazing how stupid people can become when they get dollar signs in their eyes. Warren Buffett once famously said most of them couldn’t run a lemonade stand, and he’s right.
Mind you, I find the Business Week author’s “solution” uninspired—fiscal stimulus: isn’t that how we got into this mess?—but he’s at least got the diagnosis right. That’s half the battle. And he does say one important thing: “The global economy has to go through a readjustment process that will be difficult even if policymakers can restore confidence in the financial system.” Amen. As they say, no pain, no gain. Get ready for a lot of pain, Americans making $50,000 a year who just bought $400,000 houses on top of leased Lexuses and Infinitis for the driveway. You’ve earned it.