Stat counter

View My Stats

Friday, April 2, 2010

Unanticipated spending acceleration events

I can see the financial post mortum in 75 years. The question will be "How could this have happened?" The sentiment will be that somehow someone should have been aware of the crazy out of control spending of borrowed money. There will be all sorts of analysis looking into contributing and modifying events, defining whether specific regulations, control systems, or safety measures might have been effective in preventing the run up of debt and resultant bubble bursting.

I see this to be like the investigations of the unexplained acceleration events associated with automobiles. When the various black boxes are interrogated and all the systems analyzed, the cause eventually appears to be the driver continued to press the accelerator. Similarly, when we are driving our economy at 80 mph toward a cliff, we need to take our foot off the gas and press the brake.  

No comments:

Post a Comment