I’ve posted Entry #10 for my Investing: The New Rules column at the Death by 1,000 Papercuts site. It’s entitled The Monster That Ate the U.S. Economy.
Juicy Excerpt: Consider the alcoholic. He ruins his health. He loses his job. His money is washed down the drain. His wife walks out on him. His kids cannot stand him. Was there ever a moment in which he formed a deliberate intent to cause all this self-destruction? Of course not. The fellow was feeling a little down, he took a few extra drinks for the temporary comfort they brought him and then over time it became a habit. So it is with Buy-and-Hold and our economic crisis. No one planned to let stocks get overvalued by $12 trillion. The level of overvaluation that was certain to crash our economy just sort of snuck up on us, you know? These things happen from time to time down here in the Valley of Tears.