I’ve been following the chaos in the financial markets pretty closely this week.
Anyone with half a brain knows that upward cycles do not last forever, and yet somehow the banking and real estate industries managed to convince themselves that this time it would be different, aided and abetted by a business-friendly government that didn’t care what happened so long as the economy was “strong”. On every level, from the consumer buying a house they couldn’t possibly afford to the whiz kids who turned those crappy, unsustainable mortgages into a huge stinking mass of debt and derivatives, it was about greed and the desire to have more, now, even if you weren’t sure how you could pay for it, and nobody comes out looking particularly good.
I can’t blame the government for feeling the need to step in and do something, I suppose, but I’m also not happy about their selective elimination of moral hazard from the equation.
Sat. Afternoon Update: Mark Cuban asks:
Does everyone realize how much bigger a disaster last week would have been had Social Security been privatized?
That would have been very scary indeed.