Deleveraging in real time

More than a year ago, I was predicting that deleveraging would really hurt when it gets on the scene. If you've not been paying attention recently, the ugly thing has arrived. We thought that since we had suffered more than our share since 2008, it would be time for a reprieve, but not so fast... A second market correction is underway, Greece is losing its shirt and, with it, Europe is losing its ways. America is spooked because it finally see its reflection in these new “Eurofollies” that are being played just before our eyes.

Get real folks, we've been having that huge party among other “developped nations” while we were finishing to plunder the rest of the world. Now, there is less and less to steal and we may have to start counting on us. What a concept, uh! Our kids and grandkids may have to learn a manual trade instead of becoming another trader, engineer or cosmonaut, and perhaps go back tending the fields. I don't know for sure, but even though I'm the strongest optimist around, I know that this one will hurt a lot. We'll simply need to deleverage, that is do as much with much less and rediscover contentment. Not such a bad idea after all.