For historical purposes, I would to be on the record for a few musings that I hope will find there way into Google’s search indexes so as to be preserved for my children to read one day (kind of like cryogenics for your thoughts).
Lately, I have been reflecting on the absolute madness of what is going on in virtually every market imaginable (stocks, bonds, real estate, etc.). One day, a hundred years from now, kids will be reading about this stuff in their history classes - or, perhaps having things beamed into their heads telepathically. They will perhaps wonder: ‘what were they thinking?’ The overwhelming answer will be: “they weren’t”
My pipe dream for the day, which usually involves time travel or playing in the NFL, is that someone could get through to the pigs at the trough in the government before Old Major and Napolean take over.
- This bailout stuff is a bad idea - borrowing to de-leverage? does this sound a bit screwy to anyone? A Wall Street personality was on NPR the other day saying that if there was no bailout the recovery in banks would take 10 years. My thought: “so…?” All we are doing with this bailout stuff is creating more moral hazard, more future problems that perfectly embodies the spirit of “push it off to the next generation - at least we won’t be here for the shit storm” that has prevailed in recent years.
- America will forever be addicted to leverage - two generations (soon to be three) have come of age where the culture of “buy now, pay later”, “you deserve it”, and “..but all the other kids have one!” is ubiquitous. It’s hard to remove something from your DNA - it’s just kinda there.
- Our country had many years of freedom and prosperity - both will diminish in the future. However, we should be thankful that we had any at all - remember, several generations passed in countries like the former Soviet Bloc where subsistence and repression was a way of life. More government control (by default if anything else with all of the spending and administration) means less freedom. More restricted markets mean less overall prosperity.
- The size, scope and level of government intervention is analogous to pouring oil into the drinking water supply - America will soon resemble the nations of western Europe as they currently are - old, stodgy, bloated, bureaucratic and functionally obsolescent in terms of creating higher standards of living and being a beacon for those with high aspirations.
- The American Taxpayer will soon be an indentured servant all the way around - to his government, to foreign governments and to foreign and domestic corporations and financial institutions
- The American Entrepreneur is being cast aside -when was the last time President Obama or any of these other so called political ‘leaders’ paid any meaningful verbage or time to small businesses and entrepreneurs? My question to them is: “where is your future tax base going to come from?” (you can’t tax the foreign companies and countries that are buying up America by the day Mr. Obama) What will inevitably happen is that the entrepreneurs (and other producers) are going to be expected to pick up the slack for everybody else- all the government spending and programs will be heaped on the “producers’ by those that produce nothing - this makes me sick to my stomach. State and local governments take every chance they get to stomp and spit on small businesses - whether it is hiking their taxes, passing encumbering ordinances or taking land through eminent domain for “public good”.
I don’t want this to sound too much like a whiny rant. I generally hate it when people present problems and do not put forth solutions. My solution is simple: when you find yourself in a hole, the first thing to do is STOP DIGGING.
I finally decided to write a comment on your blog. I just wanted to say good job. I really enjoy reading your posts.
I found your site on Google and read a few of your other entires. Nice Stuff. I’m looking forward to reading more from you.
Hi there,
I looked over your blog and it looks really good. Do you ever do link exchanges on your blog roll? If you do, I’d like to exchange links with you.
Let me know if you’re interested.
Thanks..
Do you do blogroll exchanging? If you want to exchange links let me know.
Email me back if you’re interested.
Hello. I was reading someone elses blog and saw you on their blogroll. Would you be interested in exchanging blog roll links? If so, feel free to email me.
Thanks.
Adam,
It’s really hard not to get pissed–indeed, livid–in this current environment if:
1) You’re an honest guy who cares about this country, or, indeed, the state of the world.
2) You actually understand some economics. (The real stuff, not fenced in party ideology)
3) You are a small entrepreneur and see the rampant corruption in all quarters and how you are getting absolutely shafted by working your ass off trying to make a better life for yourself, your family, and indeed the world, through your actions.
As you and I both know a lot of people who are in favor of these morally bankrupt shenanigans like the Wall streeter you heard on NPR or the auto union guy, or the politician, knows full well that what they’re proposing isn’t really good for the country. It simply benefits them at the expense of everyone else.
On the other hand, I’m sure some of these people really are just clueless nitwits and perhaps honestly think what they are advocating is actually good for the country; but for the most part, let’s not kid ourselves. They’re mostly just going with whatever argument sounds logical on the surface to justify putting other people’s money (or power/votes) into their own filthy pockets.
I unfortunately agree with everything you’ve said in this post. I wish I had a more sanguine view, but I’d have to drink spiked kool-aid first.
Personally, I don’t think you’re/we’re whining at all. We’re seeing what’s really going on, and acknowledging it. Indeed, anyone who doesn’t feel sick to their stomach is either dishonest or needs to understand the issues better (i.e., get a clue).
(Ayn Rand wrote an essay once called “Why Businessmen Need Philosophy” in the book “Essays in Objectivist Thought.” There hasn’t been a more apropos time in US history that that’s been more true).
Here’s an article I read the other day that sent my blood pressure up a few notches because it said pretty well exactly how I’ve been feeling. I despise how the government just arbitrarily determines what “rich” is, so they can stir up envy and jealousy, even when a lot of the so-called “rich” are hardly that. (Yours truly included).
http://www.lewrockwell.com/roberts/roberts264.html
Now that my bitchfest is over, on a more personal level, I hope business is going well for you, even if the government intends to r*pe you the moment your success blossoms.
Regards,
Dan
Adam,
Your post and my response to it last night has been on my mind till this morning.
I don’t have much to add except to say that I thankfully found something you said which I disagree with. Specifically, “They will perhaps wonder: ‘what were they thinking?’ The overwhelming answer will be: “they weren’t”
I think the overwhelming answer will actually be that they were OVERthinking.
Overthinking is what got us into this mess and will continue to make it worse.
Overthinking by overeducated ivy league theoreticians who concoct overly complicated theories that have no basis in reality.
If you DON’T think too much, you realize, immediately, that you can’t solve a problem of too much leverage and debt with even more of it.
But if you OVERthink, you can come up with a million bogus complicated schemes to “fix” the problems we face.
So, there, I now feel better that we disagree on at least SOMETHING.
Dan
Dan,
I was waiting for the other shoe to drop!
Good point - over complexity and neat mathematical models tidy up things just good enough to hoodwink the masses.
What do you think is going to happen to all the public and private retirement and pension funds invested in the complex derivatives and private equity and hedge fund charlatans? My guess is that life is going to be drastically different for those beneficiaries.
I can’t help but wonder what lost city of gold will be chased after next.
In less than four weeks I will be in Omaha, at perhaps the last bastion of capitalism left. My hope is to be recharged when I return.
Adam
Enjoy the coke and the dairy queen while you’re there.
And have a big, fat T-bone steak before the big government bans that too.
Regards,
Dan
Just happened upon your site today. Very interesting, I learned some interesting things. Lance
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