Warning: this content is older than 365 days. It may be out of date and no longer relevant.

The credit crisis we’re currently enduring has been a long time in the making. Arguably, you could stretch all the way back to 1971 when President Nixon removed the United States finally from the gold standard, making our currency a fiat currency. Since then, and especially since the late 1980s, we’ve been inflating our currency and sloshing around cash from one bubble to the next, as investors chased yield and strategy shifted from long term to short term.

Consider the bubbles we’ve had:

  • Defense spending
  • S&L
  • Dot-com
  • Real estate

Each bubble larger than the last.

It’s like… like the United States has been bar hopping, and the real estate bubble was the final bar before last call. Then someone stood up and yelled “Drinks are on me!” only we don’t know who. Doesn’t matter, drinks are on someone, so drink up!

The credit crisis is the hangover for 37 years of excessive drinking at the fiat currency bar. As the song goes, you don’t have to go home, but you can’t stay here…

Did you enjoy this blog post? If so, please subscribe right now!

Understanding the credit crisis 1 Understanding the credit crisis 2 Understanding the credit crisis 3

Get this and other great articles from the source at www.ChristopherSPenn.com

Subscribe to My Free Weekly Newsletter

Subscribe to My Free Weekly Newsletter

Sign up now to the free Almost Timely Newsletter, released every weekend with the latest news about marketing, technology, analytics, data science, and AI.

  • This field is for validation purposes and should be left unchanged.

You have successfully subscribed to the Almost Timely Newsletter!