September 23, 2011 § Leave a comment
Here we go again! The sky is falling and the economic system that we know and rely on is on the verge of the abyss. Bullshit!
The fact is that any financial, economic, political or social system rides the wave of confidence. Confidence is based on trust. If you don’t trust your neighbor, are you going to trade with him or her? If you did trade it wouldn’t take much for the deal or future deals to go sideways.
In our current financial system there is a lot of trust put into the words of a few people. If these people lose our trust, the the system depresses.
If the players don’t trust each other, then maybe we need to change the players.