Thursday, December 3, 2015

The 0% Faustian Bargain: Solvency and Sanity

By faking it non-stop, the sheeple traded their solvency and sanity for "just a little while longer"...

"Help me, it's a Black Swan event"

My mother explained the ubiquitous love for the consumption-oriented status quo, in a straightforward way that no Harvard PhD could possibly understand...unless risk is imminent, people won't change. They will continue to live their lives as they are accustomed to living, even if they know it will likely end badly. We're a denialistic species to the core. 

"No one can predict the inevitable"
In other words, there are no Black Swan events in Finance, there are just greedy morons taking on too much risk and making up sophisticated excuses afterwards. Which points to three types of risk: inevitable (i.e. in the future), imminent (now) and ignored (i.e. in the past).

The risk we faced post-2008 was the worst kind of risk - it was ignored risk. Because you can't "predict" what has already happened. But then along came Bernankenstein and the League of Goldmans Sachs Central Banksters, offering desperate sheeple 0% poverty capital in exchange for their future, so they took it. They went ALL IN on the status quo in a way that precluded them from managing the inevitable risk that was heading for them like a freight train i.e. corporate outsourcing risk, subsidized by 0%. They traded their solvency and sanity for "a little while longer".

Solvency can be fixed. Sanity, not so much.

“There is a difference between being broke and being poor. Being broke is a temporary economic situation, but being poor is disabling frame of mind, and a depressed condition of one's spirit...”
― John Hope Bryant