A Simple Look at the Bubble

[Sukerkin]

http://www.capitalismhitsthefan.com/

This seems to be a simply understood and cogent look at the roots of the Bubble that has caused us so much pain {and which is going to get worse I fear}.

As many know, my original background was as an economist and I found myself nodding in agreement to most of what I heard in the sample clip on the site.

 

[Sukerkin]

As an aside to the above, here is a look at some interesting figures that illustrate just how broken (in the sense of being out of balance) the debt-driven system has become:

http://www.marketoracle.co.uk/Article21623.html

 

[5-0 Kenpo]

An interesting viewpoint, to be sure. I do think it's a bit oversimplified though, in that it doesn't take in the government's contribution to the problem.

One other issue that I have is that, judging solely from the second link, his solution is to tax the rich and ultra-rich. This would do nothing to solve what he says is the real problem, stagnating wages. All it would do is force working class people to depend on government largesse, which would be subjected to the need of politicians to be re-elected, not the needs of the people.

That's why I love the fact that economics is a social science, rather than a hard science. Human psychology plays a big role in the economy. It will ultimately be up to the consumer / worker to get businesses to do what many would consider morally correct behavior, through the use of their economic power. No law can force that.

Of course, when we look at things such the education of the people (run mostly by who, the government), these things will never change.