\'To every thing, turn, turn, turn\' - Beatles

To every thing there is a season, and a time to every purpose under the heaven:

A time to be born, and a time to die; a time to plant, and a time to pluck up that which is planted; A time to kill, and a time to heal; a time to break down, and a time to build up; A time to weep, and a time to laugh; a time to mourn, and a time to dance; A time to cast away stones, and a time to gather stones together; a time to embrace, and a time to refrain from embracing; A time to get, and a time to lose; a time to keep, and a time to cast away; A time to rend, and a time to sew; a time to keep silence, and a time to speak; A time to love, and a time to hate; a time of war, and a time of peace.

I have always loved this song. It simply explained that in life, nothing is forever. Every thing after boom will be gloom and doom. It is natural, and the cycle is forever.

We have 20 years of Reagonomic deficit spending. Now the debts are so huge that not a chance the economy can suffer from deflation. But the bubble is poping so how much paper money will need to be injected into the bubble to keep it from deflated? Then if this bubble was kept in the original shape, were the holes being plugged?

What about next time some thing poke a hole?The clear answer from historic events will tell us that the bubble will be bursted one way or the other. All will go back to equalibrium, go back to the natural form.

In that sense, housing will be 3 or less times of personal earnings. Stock price will be 5-7 times of company earnings. Financial power will be shared and militart power will be waned.

It is natural, no matter how hard people or politicians give it a try.So the life time philosophy to take care finance shall be savings at boom and gradual spending at doom.

Savings, that is for the capital formation. Capital formation is the driver for the prosperity. Today, US saves very little if any. FED today has a policy to discourage the saving.
Some day, I hope not too far away, we will start savings. The society will start savings. We will all live within our means and build a future for next generation.But how far away will that be?

A time to get, and a time to lose; a time to keep, and a time to cast away? It may be the time to cast away.....

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