I have been reading this book along with a couple of other books, and was surprised to see the author on Charlie Rose last night, so I followed along. His explanation often went to the most simple, and the easiest to understand. Picture your own household budget, would you spend more money when you were in debt? His argument is that those who have saved and acted responsibily in society , are being forced to pay for those who over extended and acted in a non responsible way. Thus if you were responsible, your bank account is dwindling to pay for the ecessive spending of the people that did not have the money to spend.
He further states that Black Swans are unpredictable, and we need to always be prepared for one to pop up. It is impossible to chart and look back and assume that going forward the same events will take place. Not much different than our mother's and father's told us when they said, "save for a rainy day!"
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