By all accounts, the nation’s financial system hasn’t been this dangerous for the reason that Nice Despair within the late 1920s and early 1930s. The inventory market has been just like the Tower of Terror at Disney World, plummeting practically 800 factors in a heartbeat, some distinguished firms want to the federal authorities for a really giant life jacket, others are being snapped up by the competitors at comparatively discount charges, credit score availability is tightening, and all people is questioning the way it will have an effect on them.
Instances like what we’re in pull again the curtain on a construction’s flaws – very like Dorothy did within the Wizard of Oz – and drive us to take a deeper have a look at the issues. Our concern is actually uncovered, driving us to seek for its root. Fast fixes and band-aids that solely deal with floor issues – just like the $700 billion federal authorities bailout that was just lately handed – may present some non permanent reduction however are nowhere close to a long-term reply.
What’s compounding the scenario for People and for an rising variety of folks across the globe is that there isn’t a fast repair. A variety of this stems from the McDonald’s mentality that many people have. We’re hungry, so we drive to a quick meals joint, order our meal by way of the drive-up, pay for it on the first window, choose it up on the subsequent window, after which scarf down the fatty, salty, considerably empty energy as rapidly as we will.
An occasional fast journey to the drive by way of is a pleasant break from one’s cooking chores and it is definitely handy nevertheless it would not be a good suggestion to make greasy spoons your day by day vacation spot to gasoline your physique. Ever see filmmaker Morgan Spurlock in 2004’s controversial Tremendous Dimension Me?
Effectively, we and our nationwide financial system are at about the identical level Spurlock was after consuming three squares a day at McDonald’s for 30 consecutive days with out figuring out – inflated, busting out of our collective pants, hypertensive, and an inside mess.
After years of hedge fund, cash market, and portfolio managers driving the financial system and artificially boosting a whole lot of firms’ shares – and thereby rocketing some CEOs’ compensation into the stratosphere – out of greed and a want to rake in monstrous efficiency commissions, we discover that this financial mannequin is lastly beginning to collapse underneath its personal bulbous weight.