Is The Sky Really Falling?
When you’re a doctor, you see lots of patients. You also talk to other doctors who see lots of patients. And a very interesting thing is happening among both sets of people that I thought I’d share with you. I’m curious about your opinion. Many people are setting aside six months cash, on hand, out of the bank and also buying gold coins (marked and unmarked) and guns (registered and unregistered–remember New Orleans?). I had a friend tell me that her boyfriend who is a banker was thinking of pulling his cash out of the bank. A spokesman on Fox News said that a bomb shelter would be a good idea.
For quite some time, the press said the economic sky was falling and yet just a gander around indicated that the sky most definitely was NOT falling. People were eating out, shopping, driving new cars, etc. Around the time of the election and banking crisis, the numbers of home defaults rising, business seemed to be slowing, the market was up and down like a roller coaster and gas prices were sky high. People were feeling the squeeze. Still, the economy goes up and down, banks are insured, most people are doing the right thing. Talk of a next Great Depression sounded irresponsible.
Are we headed for a New Great Depression?
There comes a point where the absurd becomes absolutely rational, but no one wants to believe the evidence because the implications are so horrifying. It’s called denial. Denial can be as destructive as generalized anxiety and conspiracy theorizing. One extreme pretends that threats that do exist, don’t. The other extreme sees threats where there are none.
Have we reached an economic point where it is rational and sensible to have cash in a box, under the bed? Have we reached the place where some gold on hand would be helpful should everything tank? What do you think?