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How The Fed Triggered The Arab Spring Uprisings In Two Easy Graphs

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had a little argument with a banker over the w/e regarding this.I realise this view is not unusual on here,but in the outside world,few like to think there's a downside to printing money when they're levered up to the gills and the school fees/mortgage/car payments are due.

I have this theory that I have called 'insider fallacy' It came to me when my car was written off in an accident and the guy came to tow it away. I noticed that he wasn't wearing a seatbelt as we drove back to my house and on the face of it that made no sense- after all, this guy spends his entire day at road traffic accidents!- so you would think that he- above all people- would be aware of the danger.

But I realised that his thinking went a bit like this; he was the guy who came along after the accident happened- this was his role. So the idea that the accident could ever happen to him was, in his mind, not really possible. In terms of road accidents he was an 'insider' you see, not a potential victim like the rest of us. :D

I suspect a similar mindset prevails amongst the bankers- they, being on the 'inside' of financial matters can never be adversely affected by them- that's what happens to 'outsiders' the mug punters they regard as victims.

This is why the masters of the universe never saw it coming- they, as insiders, were immune to financial disaster- or so they thought. :D

The ultimate example of insider fallacy is practised by the con man, who persudes his mark that they are on the 'inside' of the deal, that they have unique insight into the nature of the situation- just at the point where they are in fact outsiders. being ignorant of the actual deal in which they are of course the victim.

Bernie Madoff's genius was to persuade his marks that they were on the inside of his operation - they all suspected he was playng fast and loose with the rules, that he was some kind of crook, but all thought he was their crook. :lol:

Edited by wonderpup

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I remember years ago,about 2004/5 being a business brekkie in london where the speaker was the CEO of a significant High St bank.I asked a couple of questions about the housing bubble,and unless the guy was the best liar I've ever met,he was sold on the ponzi.totally.

....he was bonus driven ...easy money from the bubble and no need to think except "house prices always go up"....if he had checked his History of Banking he would have noticed every Bank Crash involved a bursting bubble in the property market ....not very bright...but of course they were all in it together and it was sacrilege to talk 'negative' during the boom and be regarded as a nutter and traitor ...who are the nutters and traitors now....?......their punishment yet to be delivered in our weak democracy.... :rolleyes:

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I'm willing to believe it, but you know what they say about correlation and causation. I was expecting Liam Halligan's byline on that article.

The price-of-bread chart 1848-2011 is far fetched. I wonder how they chart the price of staples in North Korea over the past 50 years in correlation with the number of revolutions against the Kim-Jong dictatorship? I suppose the figures for the USSR would be easier to throw up on screen.

Jury still out ... until it starves.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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