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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Wyätt Gwyön who wrote (11268)	4/3/2004 12:37:16 PM
From: russwinter	Read Replies (1) \| Respond to of 110194

<the incremental gains to Westerners from cheap credit (granite countertops, a new H2, his and hers iPods...). > I recently read Charles Kindleberger's terrific 1979 book on manias and panics, and he addresses the concept of "overtrading", I believe that was the term? In effect, he says that people give up their standard of living very reluctantly, and certainly not through rational behavior. He cites examples such as British labor unions, etc. So taking the overtrading theory to the present day, Kindleberger (and I) would argue that Americans will engage in totally irrational behavior (and encouraged by the Wizards) and beg, borrow, and steal in order to maintain the I Pod lifestyle. Kindleberger than infers that a panic/crisis (Train Wreck?) is usually the "resolution" to this.