Overcapacity, Over-Budgeting

“We overbuilt capacity; we hired too many people.” While the article is about the manufacturing industry, the same seems to have been true for every other industry and States. My understanding of our little problems is that Texas just over-budgeted itself: after “irrational exuberance” ended, the tax-revenue disappaeared.

Anyhow, while it’s nothing as dramatic as The Depression, I’d wager, or hope, that most of us have learned the lesson of conservative budgeting, even in the face of mega-money. We’ll see what happens next time.