Sunday, November 16, 2008

It's the economy stupid

I'm old enough to recognize that even Chicken Little, if he sticks to the script, will one day turn out to be right. That doesn't make him a genius, that makes him a patient card player with a lot of time on his hands.

But I think Peter Schiff believed his dire predictions about the stock market and the housing boom were accurate, which of course they proved to be.

Of far more interest in these clips is the pie-in-the-sky predictions of the other panelists, some of whom literally laugh at the man and ask if he wants a razor blade (to cut his wrists) as they discount his warnings.

It's a ten minute clip, but three or four minutes of it will give you the gist.

Good bleepin' luck trying to change the tune mid-dance or convince people a downturn is ahead. Human nature is just dead set against that thinking when all seems well. You'd have better luck telling Romeo Juliet's slept around - it just plain can't be done.

For this reason I think recessions and downturns are inevitable. Even if a government had the power to stop these natural ebb and flows of the economy, the government of a Republic can't - or more honestly, won't - risk the wrath of the public by denying them their illusions.

hat tip

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