"Seven lean years" was too optimistic

[pscot]

The economist author of a 2009 publication forecasting seven lean years in the U.S. now says that may be too optimistic.

Jeremy Grantham of GMO LLC said in a quarterly note Wednesday that one-third of the way into those seven lean years shows that “my worst fears about the potential loss of confidence in our leaders, institutions and ‘capitalism itself’ are being realized. The economist called for “debt to be made less attractive to everybody: it really is a snare and a delusion.”

“So my advice for the last two months of the Presidential Third Year (typically the short-seller’s nightmare) is to continue to keep your head down. And, more to the point, keep it down for the foreseeable future,” Grantham said.

http://blogs.marketwatch.com/thetell/2011/08/10/seven-lean-years-may-be-optimistic-author-now-says/

[jtuck004]

1. "The economist called for “debt to be made less attractive to everybody: it really is a snare...

...and a delusion.” Yup.

Debt not only controls the borrower, but it allows the asset owner to magically, and invisibly, inflate the price
in pursuit of profit.

And we follow along like little sheeps. Or maybe more like fish, thinking we are just reaching out to eat that worm...

Debt can be extremely useful, but I wonder if it is more dangerous than we know. Radioactive. We should teach little
children that bankers, especially investment bankers, should be avoided like crack dealers on the sidewalk.

I do apologize for any insult to crack dealers, though I am sure you must develop a thick skin to work retail like that.

Please believe me when I say I would rather sit down to eat with you than with a banker. Especially an investment banker.