Why didn’t an ostensibly more rational larger older generation of investors offset a youthful dumb generational flight to crap price run up of something like Hertz by selling this obvious crap, crap as obvious to Krugman as to any other moron who should have heard the term Chapter 11 (A thing I used to practice.)?
Krugman, bless his heart, answers my prayer here, that he will find a way to fuck this article up royally even more, and trots out Keynes! His account follows Keynes' about abnormal times numbing otherwise rational market paricipants. Here's Krugman's reference to Keynes' Ch 12, a free gift from both Krugman in his article, and now from me here.
I say, on the other hand, that it is because this may be a case of generational dumb and dumber, not just, or merely, a Keynesian abdickation of judgment in an abnormal time.
It is a sign of a thesis of mine, that what are call generations here (which I don't believe in really at all) don't go in cycles at all, but rather just get dumber and dumber and dumber still, regardless of normal or abnormal times or crises.
It is not a case of a two generational family group called "the Normals", comprising a Papa and Mommie Normal, and then comes along a Little Ab Normal flight to crap boy. Papa and Mommie had bought and held Hertz, even as little Ab was bidding it up.
Similarly, as in The Big Short, the big smart players on Wall Street not only floated and underwrote mortgage backed securities, but they also held them. As Lewis noted, they themselves were also the dumb money.
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