Do you recognize this line? If so you may be a fellow “Battlestar Galactica” fan. I won’t give away any secrets of the hit series but the oft used phrase feels applicable to the financial crisis that engulfed the world last year and is perhaps awaiting its second (or perhaps third) movement.
The parallels to our financial system with the themes of Battlestar Galactica are frightening, a constant evolution of finance that eventually destroys itself and then rebuilds just to destroy itself again….can the cycle be broken?
Last year the parody website and newspaper, The Onion posted a parody piece titled “Recession-Plagued Nation Demands New Bubble To Invest In” (link above). While all good humor requires some truth, this piece is actually prophetic. Our Federal Reserve system has set us on a cycle that won’t be broken unless someone stands up and says “enough”. The fix is not easy (which is why we haven’t fixed our problems, we’ve covered them up) and will hurt, but severe pain that is short-term is preferable to pain that is chronic and never ending.
All of this has happened before, it will happen again.
Scott Dauenhauer CFP, MSFP, AIF