Why do we always wait to the last minute.

[Machjo]

We barely heard a peep about recession until the recession hit, even though we all know that a bubble economy can never sustain itself. Only a few voices in the dark were really taling about it.

Now it seems we're about to repeat the same process. All indications suggest the risk of high inflation, interest rates, labour shortages, and debt if we're not careful how we come out of this recession. I suspect (but hope I'm wrong) that when we first come out of recession and see the first sings of moderate inflation, we'll shrug a shoulder and just be happy we're out of recession. And then, just like when the recession hit, we'll start panicking at the last minute when the inflation runs out of control.

I hope we dont repeat this process and, instead, start planning for the boom now, and start implementing the plan as soon as we go into moderate inflation as a pro-active anti-inflation policy before it gets out of control.

But, judging from what I'm reading in newspapers on line, and in forums, we're about to repeat the same mistake again, and then panick at the last minute like when the recession hit. What are you're thoughts? Are we going to wait till the last minute again?

[Alta4ever]

There is only one answer, a person is smart, people are stupid. Once the collective "forgets" so to politicians and business people, because their immediate concern is always what society is thinking now, not yesterday, and not to tomorrow, just what is happening now.

Edited July 27, 2009 by Alta4ever

[Machjo]

There is only one answer, a person is smart, people are stupid. Once the collective "forgets" so to politicians and business people, because their immediate concern is always what society is thinking now, not yesterday, and not to tomorrow, just what is happening mpw.

And that's why we're eternally cought by surprise.

[Smallc]

There is only one answer, a person is smart, people are stupid.

Actually, I would say that the opposite is probably true. It's the idea that I personally am smart, but all the other people together are stupid, that gets us into these types of messes.

[Alta4ever]

Actually, I would say that the opposite is probably true. It's the idea that I personally am smart, but all the other people together are stupid, that gets us into these types of messes.

Have you not seen mob mentality?

[Machjo]

Actually, I would say that the opposite is probably true. It's the idea that I personally am smart, but all the other people together are stupid, that gets us into these types of messes.

Regardless of who is smart and who is stupid, it's only comon sence that we put lots of stimulous money into the economy over the recession, and so that runs the risk of an uncontrolled boom once out of the recession. And inflation and high interest rates generally hurt the most vulnerable the most. So, why is no one talking about it now before the boom strikes and would rather wait till it hits and then panick about it and implement ad hoc quick fixes because we have no plan?

Haven't we learnt from the mistakes of the recession?

Our politicians should be planning for the boom now. Of course they shouldn't implement the plan until inflation strikes, but the plan should be there ready and waiting to be implemented as soon as inflation strikes so that we can nip it in the bud quickly before it runs out of control.

The media has already said we're now out of recession officially. This means it's just a matter of time before a boom strikes. Yet no one is talking about it.

[Smallc]

Have you not seen mob mentality?

Yes, and that's why the group is governed by rules. Just as dangerous as a mob, is a lone ranger who thinks himself accountable to no one.

[Machjo]

Yes, and that's why the group is governed by rules. Just as dangerous as a mob, is a lone ranger who thinks himself accountable to no one.

Sure a group can be governed to keep it out of mischief. But how do we encourage the group to look further ahead than the next meal, to actually plan ahead of events so that they don't take it by surprise all the time like the recession did, and now liek inflaitn probably will. Seriously, few are even talking about it.

[Visionseeker]

Have you not seen mob mentality?

Yes, Alberta politics has fascinated me for decades.

[Smallc]

Sure a group can be governed to keep it out of mischief. But how do we encourage the group to look further ahead than the next meal, to actually plan ahead of events so that they don't take it by surprise all the time like the recession did, and now liek inflaitn probably will. Seriously, few are even talking about it.

That's because individuals only care about what is happening now. There are people that look forward and have some idea what is coming. It probably isn't something you should concern yourself with, outside of preparing for possible problems by being prudent fiscally and in other ways.

[Machjo]

That's because individuals only care about what is happening now. There are people that look forward and have some idea what is coming. It probably isn't something you should concern yourself with, outside of preparing for possible problems by being prudent fiscally and in other ways.

Sorry, I wasn't referring to personal household finances, but rather government. Is there any politician right now raising the issue of the threat of a boom right now? I'm not aware of a single one right now. These are supposed to be paid professional politicians. It's their job to look 70 years ahead, not to mention 1 month ahead.

[Smallc]

Many of them are looking ahead. Just because they don't see the same things as you it doesn't mean that they aren't.

[Visionseeker]

It's not our response to inflation we should consider, but rather deflation.

Baby boomers are now starting to retire in droves. This most selfish and spoiled of all age demographics tends to act in a manner that protects their economic expectations. Problems is, the suceeding generations do not have the productive means to economically float the money-for-nothing, freedom-fifty-five myth that the boomers lived by.

Inflation will sleep deeply in an economy that will be marked by frequent pension failures and significantly devalued private investment portfolios.

While the markets are currently in an up-swing, the economy is not. Things are about to get much, much worse.

[Smallc]

The economy is recovering according to the Bank of Canada.

[Machjo]

It's not our response to inflation we should consider, but rather deflation.

Wrong. We should have been considering our response to deflation before the recession evenhit. Now is not the time to CONSIDER our response to deflation. Now is the time to RESPOND to deflation, and consider our response to inflation just as prior to the recession was the time to consider our response to deflation. We don't consider our response to the storm when the storm finally hits. We should always have a plan ahead of any event.

Baby boomers are now starting to retire in droves. This most selfish and spoiled of all age demographics tends to act in a manner that protects their economic expectations. Problems is, the suceeding generations do not have the productive means to economically float the money-for-nothing, freedom-fifty-five myth that the boomers lived by.

OUr demographics actually increase the risk of inflation too as more of them retire and start spending, increasing demand and reducing production. Another reason to think ahead.

While the markets are currently in an up-swing, the economy is not. Things are about to get much, much worse.

Agreed. But what will it be? An uncontrolled boom, an uncontrolled slump, or worse yet, stagflation? We'd better hope not. But everyone seems to be trapped in the here and now.

[Alta4ever]

That's because individuals only care about what is happening now. There are people that look forward and have some idea what is coming. It probably isn't something you should concern yourself with, outside of preparing for possible problems by being prudent fiscally and in other ways.

I have yet to see a mob look beyond that moment, no amount of rules gets them to look ahead, single one person out of the mob and low and behold they then think beyond the moment.

Edited July 27, 2009 by Alta4ever

[Smallc]

I have yet to see a large number of people individually that think beyond that moment.

[Alta4ever]

I have yet to see a large number of people individually that think beyond that moment.

What I am talking about is well documented, and accepted as fact.

http://en.wikipedia.org/wiki/Herd_behavior

[Smallc]

Yes, individuals act together as a group and they don't always do things smartly. It seems though that your theories about individualism are proved false by the fact that the individual is more than happy to follow the group. That article also talks about a group with no direction. Governments and businesses have direction and rules and aren't herds.

[Keepitsimple]

The economy is recovering according to the Bank of Canada.

If the economy recovers as quickly as the BOC says, and employment picks up at the beginning of next year, I can see a strong case being made to slow down and cut back the stimulus funds....precisely to help ward off inflation. If there really IS going to be a boom, then it doesn't make sense to be pumping stimulus funds into the economy at the same time. So it's possible that we won't have as big a deficit as projected and in fact, what there is might be paid off in the planned timeframe. That would be good news for Canada.....but probably more bad news for the Liberals.

[Smallc]

I agree with you. Projects that are started or have had money allocated will have to be finished, but perhaps no new ones should be started.

[Alta4ever]

Yes, individuals act together as a group and they don't always do things smartly. It seems though that your theories about individualism are proved false by the fact that the individual is more than happy to follow the group. That article also talks about a group with no direction. Governments and businesses have direction and rules and aren't herds.

I just wonder where you come up with some of this, not to be disrespectful, but at time I really have to scratch my head because it defies common wisdom.

Groups with direction will find themselves without and will act without thinking of the consequences as with what happened on the Russian Bloody Sunday. Also happened to start the revolutionary war and more recently Kent State Massacre.

Governments can get swept up in the mentality too, too see it all you have to do is look at the UN Human rights council, many just follow the herd there, they don't speak up or simply stay away.

Businesses will do the same, if company A has good idea company b, c, d, e and so on follow along.

An individual may not be happy to follow the group or may be would not follow a group if they weren't in it at that moment.

The minute you pull an individual out of the group and question them why, or give them a little education about what they are doing, they can change in a instant. Even politics is herd mentality, the creation of "brands" and so forth. Do you really think any political group wants to research and decide for yourself on an issue no they want you to just buy in to the brand without question, through their "spin on the issues" or what was known as propaganda.

Stock market booms and busts also highlight this, which co-incidentally is what this threat is about.

http://www.adsavvy.org/understanding-the-h...herd-mentality/

http://dividendmoney.com/herd-mentalit/

[Smallc]

The stock market often is able to predict the direction of economy. Stock direction is often a leading indicator of economic direction. Individuals don't have the collective knowledge of an informed regulated group. I don't know where you come up with the idea that one person will always have a better idea than many people working together. You're stuck on this idea that every group is a stupid herd, but that isn't the case. We as individuals form into groups because of the choices that we make and because of an increased ability to exert influence. We often wouldn't have that ability as an individual. There are of course times where an individual would make the better decision, but that is often not the case, as is demonstrated by the anarchy that exists in a place like Somalia. I of course, don't expect you to agree.

[Alta4ever]

The stock market often is able to predict the direction of economy. Stock direction is often a leading indicator of economic direction. Individuals don't have the collective knowledge of an informed regulated group. I don't know where you come up with the idea that one person will always have a better idea than many people working together. You're stuck on this idea that every group is a stupid herd, but that isn't the case. We as individuals form into groups because of the choices that we make and because of an increased ability to exert influence. We often wouldn't have that ability as an individual. There are of course times where an individual would make the better decision, but that is often not the case, as is demonstrated by the anarchy that exists in a place like Somalia. I of course, don't expect you to agree.

http://investment.suite101.com/article.cfm...acts_or_emotion

[Smallc]

That's nice, but it doesn't change the fact that the market is a huge influence and predictor of direction. The reality is that we live in a group. We've built much of what we have today because of things that groups have decided to do. There are situations where individualism is better, but overall, the more socialize we become as a species, the better of we become.