Tuesday, October 07, 2008

A Bipolar Economy?


During the present glum destructive nature of the economy, histrionic panic should be avoided. It’s similar to treating an economy with bipolar disorder. Suffering a crash after a prolonged ‘high’ or manic episode. Going from euphoria to despair. During the years of boom and mania, there was inflated opinion, increased self-esteem, carefree joviality, boorish behaviour, over-optimistic ideas and reckless acts without thinking of the consequences. Now we stare in the face of depression. The market suffers the bipolar opposite feelings of recession. Suffering with guilt, lack of self-esteem, feelings of worthlessness and a bleak and pessimistic view about the future.

Politicians need to communicate and co-ordinate. Any psychiatrist will tell you, inconsistency and uncertainty are to be avoided. Casino party capitalism has no chips left to place on the table. Initial stabilisation must occur, and confidence in the Treasury is now paramount. I hope they prescribe the correct treatment at the right dose!

7 comments:

Arthur said...

Insightful piece, Michelle. Do you think Alistair and Gordon need psychiatric input??

QUASAR9 said...

lol Michelle,
and they promised no more boom and bust,

well at least we shan't see bankers and investors throwing themselves out of the window, because of their losses

You can always count on Gordon to bail them out

simon said...

100% agree.

BTW Australia is well positioned to avoid a recession according to world authorities.

A conservative banking sector, as well as a large budget surplus, combining the fact that we supply the worlds leading growth economies with resources (eg China @ 12% etc)- makes us the worlds largest gravel pit...and a solid investment

So we trade in substantive things rather than speculation...

It is Speculation that causes economic "Bi polar" disorders...


Did you also know that Wall street paid 33 BILLION dollars to executives as bonuses last finacial year?

the TOTAL world contribution to African aid was 27 billion...

food for thought..

:o)

Anonymous said...

this is the most boring blog EVER!

simon said...

not at all!!! :o(

merry christmas!

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Dr. Liz Miller said...

It is sad, if not surprising, that a psychiatrist resorts to stigmatising metaphors.

Couldn't you think of another, more original way of describing boom and bust?