Wednesday, December 5, 2012

Something is seriously out-of-alignment: Modern Societal expectations and Global Capital Markets

CP is laying off 4500 workers.  Citi is laying off 11,000 workers.  This is at a time when unemployment is raging in many sectors and geographies across the globe.  Meanwhile, in other regions, the realities are that there are significant shortfalls in staffing and resourcing  (i.e., professionals in western Canada).  All the while corporate earnings, and corporate cash holdings are at an all time high.  And individuals and families see the need to hold multiple jobs to 'make ends meet".

Something is seriously awry.  Consumer debt continues to be at elevated levels.  Savings are essentially non-existent.  But wait ~ expectations of standard of living continue regardless of the underlying costs (actual or realized) that are not in alignment with the income generated, or the depletion of capital realized.  This is not a sustainable path, and generally, revision to the mean forces do not pay attention to fairness or equality.  The reason why nature holds a (seemingly) ridiculously high redundancy rate is because - that's what's needed to provide to continuity.  In its simplest sense, a bank leverage of 160:1 is the exact opposite relationship that nature employs - based on assumptions of failure.  Maybe our systems still need to learn that lesson.  Watching and Learning.  Walking On.

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