“I can’t believe what is going on…it’s unbelievable,” said a companion last night. We had a group of Americans for dinner. “I never thought I’d see the day…”
We thought he was referring to the disappearance of investment banking….or to the bear market on Wall Street. Yesterday, the Dow lost a further 348 points, as investors awaited a bailout. Oil dropped $4.56. The euro slipped down to $1.38. And gold fell like a corpse – down $46.
De…de…de…de…flation. Unemployment is rising. House sellers are getting ‘desperate,’ says the Seattle Times, because buyers are stalling. Car dealers are closing down their lots.
“Well, that’s what you get at the end of a credit expansion….” we replied.
“No…I’m talking about politics. Have you seen that woman Sarah Palin? I liked her at first. At least she was refreshing. But they have to coach her on every question. She’d be out of her depth in a bathtub. It’s pathetic…
“And do you know that the odds that she would have to take over from McCain at his age are 1 in 4? What was he thinking? Imagine her at the head of the world’s biggest economy…and biggest military? It’s scary…what are they thinking?”
We gave our theory: that people come to think what they must think when they must think it. For example, there was a time when the United States really was a nation governed by laws. The steady rule of law helped it grow into the world largest superpower. But now, it’s got more debtors than creditors…and more people beholden to the government than free men. Now, people just want a quick fix; the law be damned.
for The Daily Reckoning Australia