From The Gowdie Letter (Australia) –
While instability is easy to spot in the physical world, it is much harder to identify in the financial world. In fact, the appearance of stability actually blinds the vast majority to the financial system’s growing instability.
The way I see it, when compared to the global financial system, the shanty town structure looks rock solid.
Adding more layers of risk to an inherently faulty structure or system is a disaster waiting to happen. The problem is, the longer the structure remains upright, the more people think it’s safe…until it’s not.
The 2008 meltdown in the US housing market was a classic case of stability leading to instability.