Tuesday, August 05, 2008

The Daily Reckoning

"On the other hand, never before in the history of the world has so much economic growth been going on. And most of it is going on outside the United States…and Europe."
"Between 1950 and 2000, the USA transformed itself from a country that made things to a country that financed things. Mothers stopped wanting their babies to grow up and become captains of industry; instead, they wanted them to go to Wall Street. That's where the money was - in finance, not in manufacture. Gradually, the engineers and machinists who used to run the automakers were replaced by financiers. And gradually, the business model changed, from making money by selling cars to making money by financing cars. And if you're going to finance cars, why not finance some houses too?"

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