“Crowds need lies, not truths; they are incapable of living with the infinite complexities, paradoxes, nuances, and gray areas of the truth. Mobs belittle the truth to the point that it no longer resembles itself.
- From the truth that stocks can rise for long periods of time came the lie that they will always do so.
- The truth that consumer spending can boost an economy became the lie that consumer spending is all an economy needs.
- The truth that consumer credit can boost consumer spending became the lie that credit can replace actual savings.
- The truth that the Fed can manipulate the economy in the short run became the lie that the Fed could control it over the long run.
- The truth that the economy in some ways resembles a giant machine became the lie that the economy functioned mechanically and could be understood statistically.
- From the truth that foreigners are generally willing to accept U.S. dollars in exchange for valuable goods and services came the lie that they must always do so.”
Financial Reckoning Day P. 240