The elections in Bavaria show that the German political system, which has long seemed reasonably stolid, is in enormous flux at the moment.
A thread with four lessons. (Just wait till you get to Number 4! 😉)
Anyone who tries to sell that as a success for the liberal left is kidding themselves.
That narrative is certainly confirmed today, with the SPD in single digits.
But...
This is the CSU’s worst result in history. It comes at a moment when its sister party, Angela Merkel’s CDU, at 26%, polls worse than at any point since the 1950s.
But the Greens overwhelmingly drew voters from the SPD. So this is not the rise of a new kind of politics; it’s a realignment within the center-left camp.
Historically, Social Democrats have done so well by holding together a coalition of working-class voters (e.g. steelworkers) and the liberal bourgeoisie (e.g. teacher, university students, civil servants, artists).
Working-class voters are flocking to right-wing populists. The liberal bourgeoisie feels better represented by cosmopolitan parties like the Greens.
Cosmopolitain parties that don’t have to serve working-class voters have much more traction with the liberal bourgeoisie.
Parties like the Greens are very well set up to serve the ~20% of the education that is educated, reasonably affluent, predominantly urban, and pretty cosmopolitan in values.
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I’m torn on how to approach the idea of luck. I’m the first to admit that I am one of the luckiest people on the planet. To be born into a prosperous American family in 1960 with smart parents is to start life on third base. The odds against my very existence are astronomical.
I’ve always felt that the luckiest people I know had a talent for recognizing circumstances, not of their own making, that were conducive to a favorable outcome and their ability to quickly take advantage of them.
In other words, dumb luck was just that, it required no awareness on the person’s part, whereas “smart” luck involved awareness followed by action before the circumstances changed.
So, was I “lucky” to be born when I was—nothing I had any control over—and that I came of age just as huge databases and computers were advancing to the point where I could use those tools to write “What Works on Wall Street?” Absolutely.
Was I lucky to start my stock market investments near the peak of interest rates which allowed me to spend the majority of my adult life in a falling rate environment? Yup.
Ironies of Luck https://t.co/5BPWGbAxFi
— Morgan Housel (@morganhousel) March 14, 2018
"Luck is the flip side of risk. They are mirrored cousins, driven by the same thing: You are one person in a 7 billion player game, and the accidental impact of other people\u2019s actions can be more consequential than your own."
I’ve always felt that the luckiest people I know had a talent for recognizing circumstances, not of their own making, that were conducive to a favorable outcome and their ability to quickly take advantage of them.
In other words, dumb luck was just that, it required no awareness on the person’s part, whereas “smart” luck involved awareness followed by action before the circumstances changed.
So, was I “lucky” to be born when I was—nothing I had any control over—and that I came of age just as huge databases and computers were advancing to the point where I could use those tools to write “What Works on Wall Street?” Absolutely.
Was I lucky to start my stock market investments near the peak of interest rates which allowed me to spend the majority of my adult life in a falling rate environment? Yup.