There are two times in a man’s life when he should not speculate: when he can’t afford it and when he can.
– Mark Twain

Looks like Mark Twain’s fellow Americans routinely ignore his advice. And that sets them apart. Just a decade ago they invested in dot.com companies hoping that it is the next big thing to get rich quick.

And their speculation in the housing market in the recent past (that real estate prices will forever go up), is known all too well. Now all of us (including the Americans) speculate as to when the world economy will start looking up again or whether we have seen the bottom of it or not. Continue reading →