Constant's pations

If it's more than 30 minutes old, it's not news. It's a blog.

Wednesday, December 20, 2006

Thailand's Market Losses

Notice the recovery-% wasn't as high as the first losses.

Unlike 1997, some have less wealth to lose, and are not in a position to get bitten.

* * *

Trap: Higher Burden but Lower Ability

You may need more of what you have less experience with using, especially having been beaten down in the wake of Sept 2001.

Financial meltdowns occasionally appear. The greatest danger is to lose one's mind. If this meltdown continues as did 1997, beware those who dress themselves as the solution -- they have a reputation for making a solution out of nothing.

If they had a solution, they would have prevented the problem. If the problem worsens, their duty becomes higher to justify confidence in their claims. However, during panics, people are less inclined to challenge things. Beware, the irrationality that inflated the Thai economy is unwinding, along with what was attached.

Recall 9-11. Congress loosely debated things. You were warned that people would abuse power, and they did. The same is possible during financial meltdowns. We will have to see how things unwind, or if they are contained.

One small thing can destroy the world financial system. It almost happened in the 1990s. Because of 9-11, many things that should have been addressed were not. Some think 9-11 is related to the US running out of options. If that is true, then going forward, the question is: What might the US have to do next to tape things back together. Anything.

Your mind is your only ally. Beware those who offer a solution -- it may be their solution, not what is good for you. All people are capable of betrayal just for money or something less. You may see nasty sides of people you had not imagined.

The end of this will not be "the" end. You will then have to clean up the mess you're stuck with. Get ready.