Why We Buy Into the Herd, Even When It's Not Good for Us

WP ^ | 07/20/08 | Michael S. Rosenwald

[Gondring]

Yes, that's a terrible program. Thanks, but I thought you were talking about the current financial situation. Never mind :^)

Well, NFIP is part of "the current financial situation," and just one aspect of the way our economic system is in flux, away from the taxpayer, and the struggle is between socialist system or a fascist system. We need to tell the Dems (who push for the former) and the RINOs (who push for the latter) that there's a third alternative--going back to sanity and focus on the taxpayer.

And the current Freddie Mac/Fannie Mae situation involves devaluing our currency and racking up public debt, with the $25 billion (AP article), for example. Don't think that's free, even if it's just increasing the debt not raising taxes directly...and don't think that three-card monte makes it go away...the taxpayer feels the burden.

I agree with Marc Faber, in that taxpayer money shouldn't be used to prop up Freddie Mac and Fannie Mae, but that they should carry the burden through stock devaluation rather than dollar devaluation. But the whole system is a mess, when we saddle taxpayers with risk that is far out of proportion.

[groanup]

I think you’d like this thread.

Sorry I'm so late responding. Been out of town for a few days with no TV, no cell phone and no computer.

In Ned Davis' book "The Triumph of Contrarian Investing" which I highly recommend, he cited a particular study that found that people are much more comfortable being with the herd and wrong than being alone and right.