Magical thinking is dangerous
by Adam Taggart
Chris Martenson’s Peak Prosperity
“If you’re rich you get a bailout. If you’re poor you get a handout. And if you’re middle class you get left out. ” That’s not a sustainable way to run the system, exclaims investment strategist Keith Fitz-Gerald.
A cancer at the core of our current economy is the magical thinking, “no pain, all gain” philosophy, pursued by those running it. They are doing all they can to remove the consequences of failure from the system — blind to failure’s essential ‘waste-clearing’ function in a healthy free market.
Without the discipline of Darwinism, the individual actors in the system make all sorts of malinvestments that would never make sense in an efficient marketplace. But since the losses from these inane pursuits are socialized, there’s no incentive to stop making them. At least, up until the point where the class who’s back is burdened with paying for the socialized messes finally breaks.