Such a crisis

 

1. Drew I think you are correct regarding the price of oil this was manipulated by speculation but the problem still remains that there are thousands if not millions of people who owe more than they can afford to pay back. This thing is not over by a long shot. Recessions take a fair old time to feed through and it is in my view too early to tell what the long term repercussions will be. We may have postponed the problem by shoring up banks for now but they are still on shakey foundations.

   Posted by LyndonB       10/14/2008  at  01:04 PM  



2. Pretty much my thinking too Lyndon.The folks who make money on money play this game every day.First it was mortgage profits to pursue. Then when they saw that getting fuzzy many went to oil for a profit fix. Then when that got iffy they..... ,Well you see where im going with this I hope. Now with the nation states putting up the collateral of the world to hold this ship together it will be intresting to see if and how long it can float.
   Anyone remember the South Park episode where the alien race made our world a TV show? Well sit back and enjoy this latest episode,It should be fun.

   Posted by Rich K       10/14/2008  at  02:39 PM  



3. True enough there are many economicly distressed areas here in the US Pieper and there is a lot of what you describe as worry and feeling adrift. When you have a pool of 300 million there will always be pools of every color of mood here. I only hope that this fear of whats next does not translate into dispare and hopelessness to the point that we cascade into the chaos of the early thirties. If I had to hazard a guess ( rubbing crystal ball ) I would say that after all the rent seeking is over between the money men and the g.o.v types that the system will rattle around for a period and then go pretty much back to “status normal”. The mises institute has some interesting charts showing why I think this.They show that pretty much every 8 to 10 years the markets make a correction followed by a couple of years of “rattling” and then start back to a progressive trend. These fluctuations are and have been pretty consistant since the beginning of the post civil war period.

   Posted by Rich K       10/15/2008  at  04:33 AM  



4. If the country wants to have a crisis they are free to do so. But count me out. I’m not gonna participate. I’m sticking to my long-range investment strategy. These fluctuations happen about every twenty years or so.

   Uh-oh. By strange coincidence, I’ll be eligible to retire in twenty years, just in time for the next crisis. 

   Posted by Christopher       10/15/2008  at  08:20 PM  

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