The Crash

I am currently reading a book called The Great Crash 1929 written by
John Kenneth Galbraith.

The lesson I am taking from this easy to read flowing recount of an
epic period in economic history is how we as a society pay very little
value in economic history.

While history is almost never the exact same it sure can be similar
with important nuggets of information.

What is most interesting is how quickly the public and media have
distanced the world economies from depression. I must say if that was
the only pain needed to correct decades of bad living then I am in the
wrong camp.

I sit here overlooking the Sydney harbour and ask myself can it be
that I have gotten it so wrong. Is my economic compass from an ancient
world where balance is restored with busts equal to the booms no
longer relevant.

Has all this quantitative easing or simply credit expansion changed
the game. Are financial engineering tools replacing the business cycle.

All throughout history these claims have come and then they have gone
as the natural order of society has in the end dominated with it's ebb
and flow of gradual progression. Within this cycle are great periods
of human innovation as well as periods of human degradation on all
levels.

So as I sit and ponder I realize that my process of analysis is
probably well on track and the balance will be restored the only
question remains WHEN.

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