That satirical headline is more true than you might think. I found Mathew Maavek’s article “We Are In A Bad Fix” here:

In this article Mr. Maavek has explored the “peaks” that are now in the news or will be. Topping his list is the “peak” of financial irresponsibility shown in the upper echelons of the world’s financial community. Its perhaps one of the best multi-paragraph overviews of the credit issue, that seems to be a crises to many observers. And I agree as the credit companies made some poor pre-calculated choices in the offerings and terms to consumers in order to sell packaged loans as securities to others. There is some rot in the portfolios now and more to come.

But what follows is even more thought provoking. Mr. Maavek looks into:

  • Peak oil, which we are all sort of familiar with unless living under a rock,
  • Peak urbanization which looks at the probable consequences of half of the planets population living in urban areas,
  • Peak grain, which is a certain issue as grain is the calorie giant in human existence,
  • Peak water that describes the situation about fresh water for people, food production and industry,
  • Peak fish that seems to be much worse or farther along than realized.

It’s a superb article lightly covering the topics everyone will become aware of over the coming years.

But the point shown, yet not quite described, is the money that will be lost as contractions in markets occur. That money you put in the bank that becomes the bank’s, the borrower’s the securities creator’s and the securities buyer’s will shrink back to – maybe – just you. That takes a lot of money out of the market place for buying, selling and investing.

I can easily see the “peaks” in all of these areas and agree at least in part that they are of grave concern. I appreciate that Mr. Maavek hasn’t wasted our time telling us what to think. In truth I am provoked and wondering what to think, which seems to be what I should do. On the other hand I have to wonder what other ‘Peaks” are out there and which will impact first, how quickly the come, and if they economy is resilient enough to adjust. Oh my! Seriously.


1 Comment so far

  1. Greg McSwiggan on April 24, 2011 10:36 AM

    Admiring the time and effort you put into your site and detailed information you provide. It’s good to come across a blog every once in a while that isn’t the same unwanted rehashed information. Great read! I’ve saved your site and I’m including your RSS feeds to my Google account.

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