The Biggest Fall in 60 Years - The Daily Reckoning
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Why Investors Never Learn - The Daily Reckoning
dailyreckoning.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from dailyreckoning.com Daily Mail and Mail on Sunday newspapers.
The Greatest Problem of Investors
“The financial memory,” argued John Kenneth Galbraith, “should be assumed to last, at a maximum, no more than 20 years.”
Why 20 years?
This is normally the time it takes for the recollection of one disaster to be erased and for some variant on previous dementia to come forward to capture the financial mind. It is also the time generally required for a new generation to enter the scene, impressed, as had been its predecessors, with its own innovative genius.
Just so. But Mr. Galbraith authored these words in 1990, some 30 years ago…
Before the internet came of age. Before social media. Before the Federal Reserve could clear the memory centers… compress the attention span… and addle the judgment.
The Real Source of Inequality
“WAGES for the top 1% skyrocketed 160% since 1979,” reports the left-slanting Economic Policy Institute (EPI).
The same post informs us:
Wages for the tiptop 0.1% jumped a dizzying 345% across that 41-year space 345%!
What of the 90% beneath them… who hew much of the nation’s wood… and draw most of its water?
Their wages increased a mere 26% in the 41 years since 1979.
That is, 90% of America’s wage collectors have guttered along, while its top earners have gone skyshooting past them… showing them their dust.
But why? Is it because the 90% climbed down the ladder of social mobility in 1979 and loafed?