friday range, page-38

I stumbled on an old issue of Harper's the other day (dated July 2006). Had a very good explanation of the then impending housing crash. There was an anecdote in it that said that if you went back ot the day Jesus was born and saved a single penny - at 5% interest compounded annually - you would have a solid gold sphere 150 million times bigger than earth.

That's the root cause of all crashes imo. 5% growth isn't sustainable in anything for any length of time - GDP, yield, profits, house prices, inflation, population. Yet people come to expect and demand a lot more, and governments keep trying to achieve endless growth as though its a mathematical possibility.

I will try to post article this weekend as was very interesting, simply expressed and obviously prescient. Will have to scan it as its not accessible on-line.