Five Things You Need to Know: Greece Debt Rollover, Why Semantics Matter
Also, 5,000 years of debt, the fear of failure, and bizarre Internet predictions from 1995.
"It's been three years since the collapse of the last economic bubble, so it's probably time to start worrying about the next one," reasons Jonah Lehrer at Wired's The Frontal Cortex blog. The rest of the post is very good, worth reading, and focuses on how science and brain researchers are looking for ways to understand why we create and/or participate in asset bubbles. What drives us to recklessly speculate? But what I want to focus on is that first sentence. Read it again: "It's been three years since the collapse of the last economic bubble, so it's probably time to start worrying about the next one." That sentence speaks volumes about social mood. Most of us would read Lehrer's piece today and glide right over that sentence as a simple statement of fact -- it's been three years since the last asset bubble, time to start worrying about the next one. Oh, but this was not always so! It is doubtful that statement would have been written (and passed over by the majority of readers without remark) in the 1990s, or even as recently as 2004.
Of course, Socionomics informs us of the real reason asset bubbles occur, and how human behavior, the desire to speculate, or even its opposite, the trend toward risk aversion we are seeing now, is driven by unconscious herding impulses that are continuously rising and falling in wave patterns that can be modeled. The irony is that whenever a statement in the media blithely assuming the formation of asset bubbles appears, it typically means they are far, far away. After all, the reason we are so concerned about asset bubbles right now is precisely because we are herding around risk aversion and the desire to not create them. Understanding this from the Socionomics viewpoint is helpful and informative in a very applicable way.
5. Newsweek Predicts: "What the Internet hucksters won't tell you."
Making the viral rounds again these days (it seems this article resurfaces every so often) is a 1995 piece about the Internet by Clifford Stoll. What's so great about it? Well, nuggets like this, for one thing:
The truth is no online database will replace your daily newspaper, no CD-ROM can take the place of a competent teacher and no computer network will change the way government works.
How about electronic publishing? Try reading a book on disc. At best, it's an unpleasant chore: the myopic glow of a clunky computer replaces the friendly pages of a book. And you can't tote that laptop to the beach. Yet Nicholas Negroponte, director of the MIT Media Lab, predicts that we'll soon buy books and newspapers straight over the Internet. Uh, sure.
Given the benefit of 15 full years of hindsight, it's an amusing string of predictions. Online databases are, in fact, replacing newspapers, a variety of online teaching aids are effectively replacing competent teachers in some places and computer networks have forever changed the way government works -- in Washington DC, Iran, Egypt, to name but a few -- and changing government in very profound if unpredictable ways. I am even as I type this charging a Nook tablet reader here next to my desk, a tablet device I will later use to read the Wall Street Journal and a book by William Gibson I downloaded last week.
Of course, passing around this article and bringing it up here is not intended, at least not explicitly intended, to point a finger at Mr. Stoll and mock the audacity of his pessimism about the Internet... even if he did use the phrase "Internet hucksters" which, to be fair, of whom there were many, especially during the late 1990s and early 2000s. The more remarkable thing about the piece is that it illustrates how extraordinarily difficult it is to make predictions about things 15 years into the future. Even more to the point: It is almost always fruitless to take a pessimistic slant against technology and how it will impact our lives.
Oh, and Mr. Stoll didn't miss on all his predictions. This one will probably carry an air of familiarity about it:
What's missing from this electronic wonderland? Human contact. Discount the fawning techno-burble about virtual communities. Computers and networks isolate us from one another. A network chat line is a limp substitute for meeting friends over coffee. No interactive multimedia display comes close to the excitement of a live concert. And who'd prefer cybersex to the real thing? While the Internet beckons brightly, seductively flashing an icon of knowledge-as-power, this nonplace lures us to surrender our time on Earth. A poor substitute it is, this virtual reality where frustration is legion and where-in the holy names of Education and Progress-important aspects of human interactions are relentlessly devalued.
That sentiment is almost prophetic. And I'm not so sure he's entirely wrong about the fact many of us may feel increasingly isolated by the technology we use, our iPads and iPods and social networks. But I am not so much pessimistic about this as intrigued by it. It is likely that this is merely an obstacle for technology to overcome, not an obstacle fundamental to its existence as Stoll and many others even today suggest. I won't dare to make a prediction about what that obstacle may entail 15 years into the future.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.