Friday, March 21, 2008

When the chickens come home to roost, where will they sit?

To paraphrase Volker, we've created too many bubbles on top of bubbles. One day those chickens (tip to Wright) will indeed come home to roost. What a mess that'll be if we don't get our house in order soon.

We desperately need to change the leadership in Washington and usher in a return to responsibility at the Fed. Objectivism is wonderful. In theory. And could be in practice. But not when you preach it out one side of your mouth and then look the other way at potential distortions and bubbles, a la Greenspan and company, and their leaders.

My thoughts for this morning anyway.


gregory said...

i wonder about this, the chickens coming home to roost thing... nothing rational about how the system maintains, certainly "fundamentals" are not enough to cause problems, always a new work-around is created

i have been thinking/feeling for a different explanation, and have decided to use the henry ford maxim, if you think you can, you can, if you think you cannot you cannot... meaning, the bloody economy is the cause of nothing, but is the effect of the habit of confidence

as long as we think we can, the economy out-pictures this, in whatever way

systems are less important than belief, in short

Scott Crawford said...

Gregory, Thanks for peeling away at this. Good way to re-view it. Necessity is a mother of some strange and unexpected invention at times.

Mayhaps the chickens are the moral issues that must be dealt with in one form or another.

Those, too, can shape-shift of course over time, depending on confidence/sentiment levels.

Vision for the day: Henry F. riding up front in the engine of the little train that could.