Wednesday, December 03, 2008

Those Who Don't Know History Will Indeed Relive It...and a Third Bush to Repeat?

Our economy is a mess. The economic formulas I learned in college captured the fact that our economy could go into a recession (1970s) and depression (1930s). The economic models most firms used only input 25 years of data. The past 25 years were ones where the economy basically only grew with few setbacks. So, many investors and lenders concluded, lend away, gamble away, it is all good. It seems the fact that market growth could decrease never occurred to today's youngsters. When it did, things collapsed faster than a frat boy with access to a free keg of beer. Ironically, all that money spent on new Economics textbooks probably was wasted. We should have kept the old textbooks that teach about recession, depression, and the fact that the stock market can be both up and down and way down. So, you youngsters complaining about the world we left you: hey, in 1941, the United States was the world’s 16th largest power. So don’t complain that by the time we all retire, we’ll be leaving a nation that is only the world’s 15th largest power.

Speaking of what, are you ready for the return of Jeb Bush? Jeb may run for Senator, and then, who knows: President? Bush III: Because we just can’t look away and have to see the carnage.


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