The Dot Com Bubble was painful, but we survived. Less than a decade later we are trapped in the Overleveraged, Overreaching Financial Institutions Bubble. This is a truly fearsome bubble. But we will survive.
It is time now to warn you of our next bubble. That siren you hear is your alert to the Productivity Swap Bubble. You heard it here first.
Unlike “credit swaps,” productivity swaps are easily recognized. What’s more they are something we all do every day. It makes Tom Sawyer’s fence-painting deal with Huck Finn look like, well, child’s play. The numbers crunchers, though, have done an excellent job of hiding the truth.
Productivity has always been the linchpin of America’s economic prowess. Our workers, our technology, our business processes have made the U.S. get ’er done like no one else on Earth. Or so the experts have said, from the good old days of the manufacturing economy right on into the service and information economy. Who are they trying to kid? Continue reading The Next Bubble: Your Toil-Your Trouble