I am reading an article in the AFR (Australian Financial Review) with my morning coffee how Blackstone were the absolute geniuses who bought all these distressed properties at the peak of the GFC. With the benefit of hindsight they look like hero’s and of course one can easily pin the story that they had done their homework and understood the mechanics of quantitive easing better than their competitors.
My overriding philosophy is that there always is a balancing opposite Coincidentia Oppositorum.
You can argue that the easy money era leading up to the 2007 GFC was the crisis opposite, but it wasn’t. It is important to analyze the deeper symbolic significance of the GFC, it was brought about by the abundance of money. It was people trying to live an alchemists existence. Financial engineering was the elixir to riches and an easy life. Useful production was not important we were consuming for consumptions sake. However the remedy thus far for this affliction has been even more abundance. What we have is an already distorted flow of energy become more unbalanced. The universal laws of energy flow will not tolerate this disequilibrium and will do all they can to achieve balance.
Civilizations and their economies ultimately seek wholeness where not only do they achieve balance but moreover they seek transcendence. Simply achieving balance on its own will dissipate energy blockages but it won’t achieve the required growth to ensure that there was a purpose for the hardship and lasting lessons learned.
What I am saying in a long winded airy fairy way is that the Blackstones of this world may not be so lucky next time round when they seek to play the saviour role during what I anticipate to be the coming financial crisis.