Lets fix the world economy. But is it actually broken?

By Steve Biddle, in , posted: 20-Oct-2008 15:15

Maybe I am being a little bit naive but can anybody actually tell me what is actually broken in the world economy? Much like the 1987 sharemarket crash and dot com boom we went have been though an enonomic boom cycle fueled of people's greed. The meltdown came. The free market we live in has now corrected itself and there is nothing to fix because nothing is actually broken.

Real eatate prices rose significantly, not because of the usual supply and demand but because of greed. People paid inflated prices for property not based upon it's actual worth but what they could onsell that property for. People lived outside their means on cheap credit, countries borrowed significantly more than their GDP figures could withstand, companies bought debt off other companies because they were greedy and could see big profits for themselves. Much like property, oil prices rapidly rose, again not because of supply and demand but because of speculators who believed they could make money. There was no shortage of oil. There won't be for a long time.

Did anybody serious believe that this bubble wasn't going to burst? If not you should have. While there are probably economists who strongly disagree I think you can compare a free market to Darwin's theory of natural selection where the strongest will survive and the weakest will fail. A bad business model can only last for so long before it gets wiped out..

Like a big night on the town the hangover is here for the greedy people who drank too much of the free booze.

Those who were smart shouldn't have to worry too much to worry about because you're probably sitting back smiling and saying "told you so" to everybody else.

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How to remotely control your heat pump from your phone for under NZ$25

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sbiddle's profile

Steve Biddle
New Zealand

I'm an engineer who loves building solutions to solve problems.

I also love sharing my views and analysis of the tech world on this blog, along with the odd story about aviation and the travel industry.

My interests and skillset include:

*VoIP (Voice over IP). I work with various brands of hardware and PBX's on a daily basis
  -Asterisk (incl PiaF, FreePBX, Elastix)

  -xDSL deployments

*Structured cabling
  -Home/office cabling
  -Phone & Data

*Computer networking
  -Mikrotik hardware
  -WAN/LAN solutions

*Wireless solutions
  -Motel/Hotel hotspot deployments
  -Outdoor wireless deployments, both small and large scale
  -Temporary wireless deployments
*CCTV solutions
  -Analogue and IP

I'm an #avgeek who loves to travel the world (preferably in seat 1A) and stay in nice hotels.

+My views do no represent my employer. I'm sure they'll be happy to give their own if you ask them.

You can contact me here or by email at stevenbiddle@gmail.com