Thursday, December 11, 2008

Short Term Memories

One of the features of the current financial crisis, and everyone before that I have seen, is that the latest whizz kids will have been in school when the last one happened. Talk to the banks and investment/merchant banks and private equity boys and you'll note that none of them remember the lessons of 1987 because none of them were working then. Anyone who might remember has long since been made redundant or made to take early retirement in our mad dash to worship youth.

One close friend who worked in banking was told by his manager in the mid 90's that he intended to get everyone over 40 out of his division. My friend was 42 at the time so put his head down and said nothing. He survived but his boss has long gone!

The next big surge in will come in about 20 years time as the current management teams are replaced by the kiddies at school. Hope I can survive financially that long so I can take advantage of the inevitable bull market and am still smart enough to see the warning signs before the inevitable crash occurs.

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