Friday, July 16, 2010

My ah-ha moment for the year....


According to this graph, sourced originally from Dailyfinance.com, 10% of the people in America controlled 90.3 % of the wealth in stocks, bonds and mutual funds in 2007. Wonder what that percentage is now? They seem to be on track to control 100%, leaving nothing at all for the rest of the 90% of the people - except for housing equity and cash savings, and we know how much of that there is going around.

Interested in an enlightening talk about the relationship between a Ponzi economy, deflation, depression, and peak oil? Check out Stoneleigh's presentation (minus the slides) to the Transition conference. Yes, you do have to listen an hour + presentation without visual aids. Buck up - I did it, and it was worth it.

4 comments:

Mia said...

Stoneleigh's presentation was definitely my ah-hah moment for the year. Well worth the listen. I think we are heading for some more financial pain sooner than most people seem to think. Yes, resource depletion is going to affect us in ways most people can't comprehend. But before we get there, I think a rather large recession/depression is going to cause a lot of people a great deal of pain. I saw the writing on the wall a couple of years ago and got out of debt as fast as I could in preparation. I'm glad I had the time. Stoneleigh's talk just gave me the push I needed to hurry up and get myself as self-sufficient and resilient as possible for a future filled with a great deal of uncertainty.

Robin Walker, Transition Evesham Vale said...

The talk by Stoneleigh is certainly an important contribution to the thinking on Transition, but on its own it can be quite frightening and very depressing - I spent a week with my head in a spin, and I know it has had a similar effect on others. There is a helpful follow up discussion from the Sunday at the conference by Rob Hopkins and others http://www.youtube.com/watch?v=H2lx3ZLmQj4&feature=player_embedded, and some thoughtful analysis and debate from Shaun Chamberlain at http://transitionculture.org/2010/06/14/my-conference-shaun-chamberlin-on-stoneleighs-peak-oilfinance-talk/
These put Stoneleigh's talk into perspective, and helped me come to terms with the implications.

Peak Oil Hausfrau said...

Yes, there is something very personal (and therefore scary) about the financial crash for many people - somehow less remote than hearing about peak oil or climate change, which people have trouble relating to their own lives.

There is a certain set of people who think, "well, if it's that bad, then they won't be coming for ME...." I think this could be potentially disastrous, head-in-the-sand approach.

don bates said...

Re: your comment about housing equity: According to a graph on Automatic Earth a few days ago, net US housing equity is very close to zero. I've read that elsewhere, also. So you can scratch that from your list of what little we have left.