Random Ramblings

The following is a bit of a shotgun blast of thoughts; I am in the midst of a week-long work seminar, and my brain is not functioning well enough to be cohesive.  Garth's post over at Greater Fool is excellent today, as well.


The most frightening moment in my entire life occurred in a Grade 12 Social Studies class, which is now about 8 years ago.

However, I still remember it like it was yesterday.

Our teacher, who's name I no longer recall, posed a question I thought to be rather simple:

"How many of you think people should be able to do whatever they like, as long as it does not harm anyone else?"

I was one of three people, out of a class of over 30, who raised a hand in agreement.  If this doesn't concern you, then you are already beyond help.

Now, one can make the argument that a lot of people in that class were either high or didn't care, which is probably true, but that shouldn't have amounted to the 90+% of them who supposedly disagreed.

That brief moment has helped me understand why everything in our world is the way it is, and why I am the way I am.

It's also one of the many reasons why I am a member of the Ludwig von Mises Institute, and encourage anyone with an open mind to explore what it has to offer.

Just a thought.

In other news, the TSX appears like it may make a run for 13,000 or possibly even beyond.  At this point, it doesn't matter.  We have seen some pretty hefty corporate earnings on essentially zero revenue growth.  This means that margins are peaking, which is not what happens in the middle of a "recovery".

Also, there's a reason my mailbox is inundated with junk from payday loan companies every week, and my bank constantly calls to offer me newer and exciting ways to become enslaved to them.  For the record, I have never had a line of credit, nor have I a use for one.

Growth in Consumer Credit Collapses by 50%

With real estate, it doesn't matter if we avoid the massive decline that has already begun, because even if valuations were to flatline and maintain existing levels for the foreseeable future, the large number of people who have been living beyond their means by sequentially rolling their consumer debt into their mortgage, expecting to continue using the double digit appreciation seen over the last decade (due entirely to one-time modifications of lending practices) to "pay it off" are going to be in serious trouble.

As I have said before, there are only two ways to succeed financially, and only one way that you can control. Luck and hard work.

On a side note, I am not a permabear.  I just call it like I see it.  If you had asked me my opinion in March of 2009, I would have told you to put every single penny you could find into the market.  If you had done so, you'd likely be up 2000% today.