Lot of talk on here about the morality of bankruptcy / should we behave better than the bankers / what’s the world a coming to, kindathing. This is a productive area for discussion because I believe that those individuals that arrive at a new personal ethos first, will be ahead of the curve in this adapt or flounder world.
Anybody as a kid had a fantasy of making a giant firework, anybody actually do it? Well not me, but to get analogous for a moment lets imagine the frecker just went off, and it was glorious, beyond expectation, thrilled/scared the entire neighbourhood. A big flash, a huge boom, it rocked. However as the smoke clears we see the thick kid from next door who me and my friends persuaded to light it now has a smoking crater where his head once.
Anyhow what I’m saying is that this was an event that cannot be undone or repeated. It was a chemical reaction that has changed/ altered/used up the components that were involved. There was a timeline leading up to the event, the materials were combined in a particular way, the fuse was lit and then afterwards charred limbs were gathered up and everyone had to get on with their lives best they could and promise not to be so silly ever again.
So what if HPI was a similar event? The components being fractional reserve, exotic funny money from the Asia, no regulation of institutions, complicity of government and media coupled with compelling and irresistible marketing of financial products, the destruction of pensions as an investment vehicle, the destruction of entrepreneurial activity as a conduit of wealth creation…. etc. etc.
And it went off like a giant dodgy firework and the components and condition of its creation were simply a one off event.
So whatever The McDuke of Moral Hazard and his buddies do – they cannot un-ring this particular bell. There is no cycle. The new challenge is surely to make yourself untaxable. My question is - Is it legitimate for the middle-classes to adopt chavesque strategies to avoid being eaten alive by the state?