Honesty in Wyoming
posted by Trevor Loudon at
5/14/2010 11:36:00 AM
Friday, May 14, 2010
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It is really eerie to watch the public European reaction to the requirements of fiscal austerity. Entitlement and dependency cultures are dangerous things to create. It was obvious if you ever listened to Maggie Thatcher: "The problem with Socialism is that you eventually run out of other people's money".
Now we'll see how adults handle the situation where somebody takes away their lollipop.
The dangerous part is that people come to believe they are "entitled" to things for which they haven't really worked, "virtual manna from heaven", as it were. There are already ugly rumblings in Spain over a measly few billion euros.
The dangerous point will be when the crash comes to the US, as the US is really no different from Europe and its administration has been working hard to make sure of the increase in the dependency culture as that provides votes for Democrats.
There is a "paranoid" theory that says this is exactly what the administration is setting up. That is pretty far fetched, unless you tie in that May 6 instant plummet in the Dow as a demonstration of something to somebody. That the market immediately recovered was noted in one source momentarily as a Fed response to the crisis. Interesting that they were prepared to act, isn't it?
I am currently a sailor, and I can tell you nothing has changed.
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