It's What They Do Know that Just Ain't So

Maison Fleury  had a fantastic post about how people misunderstand mortgage laws in America and are making bad decisions because of it.  He reminded me of the American humorist, Will Rogers statement: "It's not what people don't know that hurts them. It's what they do know that just ain't so."

In our brave new world, how is that idea going to effect individuals making financial decisions, supra-national organizations like the European Union making financial-political-structural decisions, countries working out the economics of fiat money or central bankers dealing with currency manipulation?

In all each of these situations, people grew up with a particular paradigm for interacting the world. And surely they were successful because they made good decisions working within that paradigm. However, what if the world has changed and the old paradigms are no longer helpful?

To be successful today, will we not only have to escape the old paradigms, but also understand new ones before we can move ahead. 

Those who see the world more clearly have an advantage over those who don't. Which individuals, countries or organizations will adjust more rapidly and appropriately?

"It's not what people don't know that hurts them. It's what they do know that just ain't so."

Why Are You Reaching that Conclusion?

A friend of mine's roof has a hole in it.  I was talking with him the other day and he commented that the upcoming season is supposed to be the driest on record.  Maybe he researched weather patterns, looked at prediction analysis and cross-referenced that with the Farmers Almanac.  Or maybe he reached that conclusion because if anything else happens, he has a real problem.