Theoretical? Abstract? Removed?
It’s been over 9 months since I emailed some friends a snarky-yet-frighteningly-incisive piece laying out the intricacies of the current sub-prime-and-the-kitchen-sink crisis. Fast-forward to today, where the NYT tells the exact same story, detailing the tragic implications that this human propensity for denial has had on school districts, municipal authorities and local governments (and of course, all of their attendant constituencies = us) around the globe.
A sad taste of the destructive ripple:
…the transportation authority has already announced it will raise subway and train fares next year because of various fiscal problems, and may be forced to shrink the work force and reduce some bus routes. Some analysts say fares will probably rise again in 2010.
People have always wanted to be the exception. To not, as someone recently said, “be average” but to be “above average.” This means timing the markets. Escaping risks that, while explained to you, don’t really apply to you. This is not new. But, what has changed is the scope and the degree of interdependence that results from this behavior.