Social Mode

The financial issues are the ultimate consequence for huge swaths of people, policy makers, CEOs, workers, and investors.

Nothing better than the brink of financial destruction to get people moving.

We’ve had significant policy changes in less than a week!  When have you seen this much action in government?

Here’s a proxy chart of stock market action (from wikipedia):

For reference, I made this chart that plots the calendar year and continuous years of one political party that maintains the presidential office.  Spikes represent when the party changes.  Consider this against the above chart.  If you like the raw data, here it is. Volatility does not necessarily imply a change of party, but a crisis  and/or complete stagnation seems to.  Perhaps change of office is a catalyst, perhaps it’s a lagging indicator. hmmm.

All that said, I’m very empathetic to everyone who’s lost money as the result of inaction.  It sucks. It is necessary though.

I hate “corrections”.  Corrections are cute and they happen, but they aren’t CHANGE.

Review the history of the Federal Reserve to go deep into how panics, massive failures, and brink of collapse spur rapid action.

Since you’re here and researching, you might as well read up on the US Treasury.  Spend some time in the Timeline. Funny how the 2000s are so light?  When is “history” history?  I have a feeling 2005-2010 on this web page will have a few line items.