Charlie Munger: Boom and bust is normal


link below interesting interview

Charlie Munger is Warren Buffett’s long-time business partner, and the Vice-Chairman of Berkshire Hathaway.
Like Buffett, he was born in Omaha, but became a lawyer in Los Angeles before meeting Buffett, and becoming a fellow investor. The two spent many hours on the phone together, discussing business, and evolving the approach to investing that has paid off so spectacularly for them both.
Today, Munger says he may only speak to Buffett once a week, but his key influence on the success of Buffett’s enterprise over many decades is undisputed.
The Money Programme special ‘The World’s Greatest Money Maker: Evan Davis meets Warren Buffett’, Monday, 26 October, on BBC Two at 2100.


?! Of course boom and bust is normal to the capitalist process. This has been conclusively demonstrated by economic theory and economic history and has been an accepted fact of economic life according to economic analysts for at least a hundred and fifty years. Is there anyone still out there who does not know this at this stage?

How much has been written in economics about debt-deflation, disproportionality, harvest theory, innovation theory, credit cycles, cumulative process, overproduction theories, dynamic models, endogenous fluctuations, exogenous theories, acceleration principle, failure to see cycles as inherent in capitalism, role of hoarding, fluctuations in plant and equipment, large amplitudes in constructional industries, random-disturbance theories, underconsumption theories, non-spending types, gluts…?

What’s really fucked up here is how during the boom, economists and other financial professionals who had associations with corporate and government institutions denied the real facts and evidence of their own science, and proclaimed a self-interested, spurious view to the public, aided by a willing and complicit media.

Imo this aspect in particular (also others) of what happened to our public discourse needs to be thoroughly investigated and reported on. Here is criminality of one of the worst kinds - deliberate misleading of the public by those who hold privileged positions of that public.