The point of no return
Naked capitalism has a post titled about rich wealth, but what got my interest was the discussion on the point of no return on fiscal budgets, or rather, what is considered the point of no return.
Truly, he describe's today's wealthy, and they are not the wealthy of yesterday, doctors, lawyers, etc., but people involved in creating the biggest bubble in history and reflects that somehow these people won't be the wealthy of tomorrow or at least would have problems becoming wealthy, awe, too bad...
I bring up who the wealthy are and everytime I look, I see a lot of problems with ability to analyse the markets. There was this massive bubble to ride and it seems to me that practically anyone could have done well and there were few exceptional skills. There were some, but butt stupid and grossly incompetent analysis also did well in many cases.
In any event, what he describes as the point of no return seems highly optimistic to me. It looks based on more recent history and not taking into consideration today's circumstances that are different.
And that also brings me to an interesting discussion I had with a friend, who made these comments when reviewing the article:
I am certain that the solution to our problem is not borrowing more money. I cannot see the logic in solving individual debt problems by having the nation behave the same way as a whole. at the same time we are oppressing our employers who will pick up their marbles and play in another sandbox if we're not careful.
I am just wondering if the whole thing will come down and what life will be like for my kids. Most people don't know about hadrian's wall. It's where the roman empire walled off england from the blue devil (scots) and gave up. It's their last stand before it collapsed 1500 years ago. They had central heat, sauna, running water, urinals, somehow civilization went back to outhouses for 1200 years after it. Every major empire has fallen from within, they don't get overrun, they collapse under their own weight, egypt, greece, rome, spanish, british. You build until it's not sustainable.
I think that assessment is true and now the question becomes will the weight be reduced to prevent a collapse or will the path that just keeps adding to the weight load continue?