Thursday, 25 September 2008
All that we know is nothing really changes
So in the end the governments had to step in and stop the significant economies of the world from going down the toilet. Suddenly people are saying that speculative trading is immoral (which it probably is but no one worried about it when everything was going well and they were making lots of money). I have lived through a stock market crash and house price crisis before. At one time I had significant negative equity in my tiny, grotty one bedroom flat in a not too nice part of London. I was discussing this with a colleague the other day and we agreed that this experience had made us much more cautious so we do not have enormous debts or generally think it is okay to live above our means. If this experience makes another generation more cautious in the future and less inclined to believe the people trying to sell them the impossible then that is not a bad thing. I think these things are just part of the natural cycle of life recorded in the Bible and probably known for time immemorial. You have seven years of prosperity and seven years of famine and you must save in the prosperous times for the famine. Shame those gambling on the money market did not take note.