Risks to your money
Friends tell me how the economic crisis has begun to threaten their ability to make a living and pay their bills. They're worried. I'm worried.
Three British thinkers suggest three reasons for the crisis -
1) According to philosopher and mathematician Alfred North Whitehead, a person commits
the fallacy of misplaced concreteness when he mistakes an abstract belief, opinion or concept about the way things are for concrete, physical reality.
Translation: "All I can say is, beware of geeks bearing formulas," Warren Buffett.
2) Adam Smith suggests
. . .being managers rather of other people’s money rather than their own, it cannot well be expected that they should watch over it with the same anxious vigilance with which the partners in a private company frequently watch over their own.
Translation: Governments and business don't mind spending and losing your money.
3) "The current pandemonium on the Wall Streets of the world is not due to a failure of the free market. It is due to a failure to observe the rules of the free market." The government's role in this stuff reminds me. . .of Milton:
Chaos Umpire sits,
And by decision more imbroils the fray
By which he Reigns.
Translation: The US and UK governments have helped to create the crisis and their strategies to deal with it will create a bigger crisis which will make them bigger and more powerful.
Held in thrall by a theory that bears little relation to concrete reality - we can spend our way out of debt and we can reward failure and punish success - and determined that government will become the be-all and end-all, they admit - “You never want a serious crisis to go to waste" (Rahm Emanuel, Chief of Staff to U.S. President Barack Obama).
UPDATE: Crisis cancelled. President Obama now tells us that the crisis is "not as bad as we think". Never mind that Congress was told that the catastrophe was so dire it had to immediately budget a trillion dollars to spend America out of it. You recall that most members of Congress did not even read the bill and the President's promise that the American taxpayer could review the bill online for five days was deleted like a phone message from an old girlfriend in the rush to approve it by Valentine's Day. Not to be rude, but is this new update the kiss-off? Is there any reason to believe anything that a politician says?