Doesn’t look good according to the chart below. This pain could go on for a few more years yet.
Of course charts don’t predict the future, but they do give an indication of a system dynamic. the problem for the world is that the system is not adapting.
There has been no change in the way of governance – politicians and business leaders continue to pad their pockets instead of doing their job. Politicians hide behind the excuse of “serving their constituents” when in fact they are serving the companies or people that pay them off. Business leaders hide behind the excuse of “profit maximisation” when in fact the ultimate beneficiaries of their shareholdings would rather a more ethical business practice.
What can we do? We can change our own behaviour, our own consumption habits, our own investment decisions. Will we?
Chart from the 2012 Economic Report of the US President published by the Whitehouse for the Congress chapter 4 “Stabilizing and Healing the Housing Market”.
Red = The Great Unwind: start 2007; Blue = New England bust: start 1989; Orange = California bust: start 1990; and Green = The Great Depression: start 1930.
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