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To quote Warren Buffet -- "Only when the tide goes out do you discover who's been swimming naked." That's one of the main points of Strong Towns; a focus on res
by tankenmate 4y ago
To quote Warren Buffet -- "Only when the tide goes out do you discover who's been swimming naked." That's one of the main points of Strong Towns; a focus on resiliency. Down turns in the economy, be it one oversized local sector (a local coal mine maybe) or all sectors (e.g. GFC), can be a trigger for a collapse; especially for a community that has focused all it's efficiency on that (those) sectors. If there's nothing left in the tank when the bad times come you only have one option left, collapse (and quite often a cascading collapse). Here's a term I just came up with; Sociological margin call.
- michael1999 4y agoThat's a nice vivid metaphor for financial types. Although margin calls usually trigger liquidation, while Tainter's model of catabolic collapse starts more like an orderly wind-down. Or maybe a private vulture buyout. The real liquidation happens later.