Friday, June 18, 2010

Running out of other people's money

Summer seems to make it difficult to get concerned about anything. All those important causes whether personal or work related will wait for September. That's always been my attitude anyway and it seems to be true of the stock market and everything else as well. The media often sets the tone for what should be at the top of our collective agendas. Right now the World Cup is the big story here, but close behind is the impending G8/G20 traffic disruptions and security costs in the Greater Toronto area. Close behind that is the catastrophe in the Gulf of Mexico, but all of it does not seem that important because its summer.
Everyone has forgotten the economic crisis of 2008/09 that created market turmoil, job losses, portfolio losses and on and on. Most people think the problem has been solved, the bailouts worked, good times are just around the corner, the governments of the world have things under control. The coming G8/20 meetings will be the icing on the cake and will demonstrate to the world that everything will be hunky-dory. Some people think that this apparent pause the economic crisis is just the calm before the real storm.
Johan Norberg is a Senior Fellow at CATO and he sounds like that TV ad Canadians are accustomed to viewing from the ING guy "Fredrick" who cautions people to "save your money". Norberg has some sobering comments in this CATO video from last month:


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