Basically, It's Over
A parable about how one nation came to financial ruin.
Click on the title to this post to go to the parable referenced above. This is the most important parable you will read in 2010. Just who is the author of this parable? Before I reveal his name please know that on almost any given day you can find articles saying similar things, sometimes by people who deserve respect, sometimes by those who don't.
This article however was written by Charlie Munger. Many of you may not know Charlie, but I'm willing to bet you know his counterpart....Warren Buffett. Charlie Munger is the Vice-Chairman of Berkshire Hathaway and is arguably one of the greatest investor minds in history, you can visit his Wikipedia page here.
It is because of WHO Charlie Munger is that this parable is so important. Charlie was born in 1924, he is an investment genius and understands economics better than most everyone on Wall Street and all politicians. Thus this parable about the demise of Basicland, AKA America is so powerful and such a big story. Imagine if Michael Jordan came out and said that the NBA was no longer the most competitive basketball league and in fact if it didn't change dramatically soon would be ruined. This would be a huge story, yet the Michael Jordan of finance has penned a parable saying "It's Over" and nobody noticed. Its not even a busy newsweek, yet nobody is talking about Charlie Munger's parable and its implications for our future. Does it not bother anyone that he mentions a year, 2012.
Munger uses the parable to strongly support another old schooler, a gentleman by the name of Paul Volcker - he refers to him as "Benfranklin Leekwanyou Vokker". I've supported the Volcker reforms and it feels good to know that I'm in good company.
I urge you to read this parable and pass it on to everyone you know.
Scott Dauenhauer CFP, MSFP, AIF
