Here’s a cheerful thought for this “supposed-to-be-the-biggest-shopping-day-of-the-year”. According to Bill Bonner of the Daily Reckoning financial newsletter, after the fall of Rome property prices declined for a thousand years. He doesn’t have a footnote, but they usually do their homework. This of course is rather contrary to the modern “wisdom” (delusion might be a better word) that “property prices always go up” and “the market will certainly come back.” Ask the ancient stockholders who traded on the Roman stock exchange about that.
Comes now the news, from numerous sources including the New York Times, that the actual out of pocket cost of the various financial bailout schemes being advanced by the goobermint is approaching $8 TRILLION. As I often say, nice work if you can get it, but this is starting to boggle the mind. This is the biggest “public works” project in history. It is bigger than World War II. Bigger than all the dams on our rivers, and highways across our land.
Ah well, I am glad that most of the food on my Thanksgiving table came from local farmers, that my mortgageis with a credit union that does not sell its loans but keeps them at home and thus the interest benefits the local economy. I am grateful that my house is super-insulated and energy efficient and that I have lots of edible landscaping. I am glad that many of the people I know and love are making similar changes in their lifestyles. I worry about the many people who are unable, or unwilling to adapt to the coming realities. By working together, we can strengthen our local communities in the face of this on-coming category 5 financial hurricane.