Monday, August 08, 2011

As you were.

With the current GFC dominating the news I thought it would be relevant to copy & paste from my Dubai blog this post which dates from over a year ago:


Learning from mistakes?


Major factors behind the global economic meltdown:

Historically low interest rates held for a very long time.

Vast amounts of money spent or committed by governments.

Banks' tele-sales people pestering consumers with phone calls offering credit cards.

The financial industry creating 'complex financial instruments' (actually worthless pieces of paper), sold to each other and unsuspecting investors for huge amounts.

Huge salaries and bonuses for bankers and other business executives, based on short-term (this year's) profits and share prices.

Retailers offering big-ticket items at big discounts with no deposit, nothing to pay for several months and financing at very low interest rates.


How we're dealing with the global economic meltdown:

Historically low interest rates held for a very long time.

Vast amounts of money spent or committed by governments.

Banks' tele-sales people pestering consumers with phone calls offering credit cards.

The financial industry creating 'complex financial instruments' (actually worthless pieces of paper), sold to each other and unsuspecting investors for huge amounts.

Huge salaries and bonuses for bankers and other business executives, based on short-term (this year's) profits and share prices.

Retailers offering big-ticket items at big discounts with no deposit, nothing to pay for several months and financing at very low interest rates.


Insanity: doing the same thing over and over again and expecting different results.
Albert Einstein




I've never believed the old cliche 'we learn from our mistakes'. The evidence is that we don't, we just keep repeating them.

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