I’ve posted Entry #29 to my weekly Investing: The New Rules column at the Death by 1,000 Papercuts site. It’s called Seinfeld Economics: An Economic Crisis About Nothing.
Juicy Excerpt: We turn this huge something — trillions of dollars of phony money running through a society in which millions of important decisions are made every day that require an calculation of how much money we have — into a nonexistent nothing in our minds.
That’s why it was able to sneak up on us like that and grow so large before we were able to see it. Had we not turned stock overvaluation into a nothing, we would have been talking about it and coping with it all along. When prices started getting too high, we would have written articles warning investors that stocks were not worth the being charged for them anymore. That would have brought prices down. And so the monster would have been kept in its cage. But by pretending that the monster was a nothing, we let him grow and grow and grow and grow.
feed twitter twitter facebook