I am amazed with the interest in the movie “The Big Short” among people I know. I was in fact amazed that someone thought the book was worth making into a movie. Clearly their hunch paid off because it seems to be doing quite well.
I loved the book. I had caught bits and pieces of the story of these traders since 2008 but Michael Lewis put it all together in a digestible form. It is brilliant.
If you’re not familiar with ‘shorting,’ it refers to the practice of betting against a stock or market, or perhaps betting that something will fall in value, as opposed to what most of us do when we buy stocks, which is to hope they go up. The traders in the movie were responsible for other people’s money and well in advance of the crash of 2008 they started to ‘short,’ or bet against the market.
In hindsight this sounds all pretty basic. Well, yea, obviously, why wouldn’t you bet against it … it was obvious it was going to correct in a big way. Well, it was to some people, but not the majority of people, including many of the people who had money invested in their funds, it was not. The years before the crash saw a huge run up in stock markets that looked like it was never going to end. So these traders took a lot of abuse from people who were watching other people make a whack of money in other funds. Or at least this is my recollection since I read the book years ago.
So they were pariahs for a long time, until they weren’t…at least to the people who stuck with them. Then they made a movie about them, after a book.
I was thinking about this concept in preparation for our upcoming workshop. Many of the things I recommend would appear to go against conventional wisdom. Why would you heat that way, it’s not that convenient? Why would you bother doing that, isn’t that growing and storing food thing you do a whack of work? Yup, I get it. It’s all a lot of work and a stupid idea … until it’s not. And then it’s going to look quite brilliant that you took these precautions.
I feel like with many of the things we do with a ‘preparation’ mindset, we are really missing the mainstream boat. We are ‘shorting’ the mainstream. A lot of this has to do with us realizing that the constant pursuit of money just leads to spending it, which isn’t the best thing generally for the planet. So from that perspective we feel good about it. From a prepping standpoint though I just think a lot of what we do makes a lot of sense.
I talk about this in my books and it’s the concept that nothing I recommend really has that big a downside. Investing in a solar hot water system is only going to save you money in the long run. Sure, it’s cheaper and easier to just keep using fossil fuels in the short run as you might right now, but having your own independent hot water system removes one more expense from your budget, which is a good thing, and reduces your impact on the planet (if you care), and makes you that much more resilient to a disruption in the extremely complex, capital intensive structure which delivers that fossil fuel to your home.
All the things we talk about are based on participation in the whole capitalist economic model. The types of food you purchase to put away and many of the things we recommend are based on being able to purchase these items now. We live in a time of extreme plenty. But ultimately, you are going to the effort to do these things in a bet that there may be some interruption to that big complex machine that could be fairly disruptive to your well being. You’re shorting the system.
The great thing about my direction … let’s call it ‘the little short’… is that you probably won’t have people yelling at you to change your course and keep on the whole “make money/buy stuff/have to keep working to buy more stuff’ treadmill. Most people would like to remove themselves from that economic model if they could, I just show you some techniques to speed up the process. And to be more resilient should things go a little sideways.
We’ve changed the date of our spring workshop to Saturday, March 23rd. Be sure to register as soon as possible so that we can reserve a spot for you. Come and learn how to short the whole big picture thing!
LINK for information and to register for the workshop here