Of Two Minds – This Is a Financial Extinction Event
Though under pressure from climate change, the dinosaurs were still dominant 65 millionyear ago–until the meteor struck, creating a global “nuclear winter”that darkened the atmosphere for months, killing off most of the food chain that the dinosaursdepended on. (See chart below.)
The ancestors of modern birds were one of the few dinosaur species to survive the extinctionevent, which took months to play out.
It wasn’t the impact and shock wave that killed off dinosaurs globally–it was the “nuclear winter”that doomed them to extinction. As plants withered, the plant-eating dinosaurs expired, depriving the predator dinosaurs of their food supply.
This is a precise analogy for the global economy, which is entering a financial “nuclear winter”extinction event. As I’ve been discussing for the past few months, costs are sticky butrevenues and profits are on a slippery slope.
Just something jolly to get you going on a beautiful Sunday morning. Personally, I think we can come back quickly if we change our institutions. But that will take a while.