Wednesday, February 07, 2018

People think of "SHOCKS" to a system as the only thing to worry about

What if we had a problem that was a bit slower in manifesting itself as a BIG issue. What if it were "more" like the frog in boiling water problem.

What is our solution of increasing debt to fix a problem of debt was exactly the wrong prescription.....but we didn't know it because we seemed to go back through "normal" as we did it...and so we felt "good" about our prescription....but what if what we were really doing was just setting up a long and slow oscillation.

Look at the video below of the Tacoma Bridge disaster....there is no doubt that people recognized the situation was not only unusual.....but quite dangerous. But it wasn't a case of a "shock", so much as a wind that just happened to create forces that set a dangerous oscillation at the harmonic resonance of the bridge......

Could economic situations ever be similar?


Here is a more dramatic news show describing the event:


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