On today’s show, we are looking at the difference between acute pain and chronic pain. With acute pain, such as you might experience when you hit your thumb with a hammer can be all consuming. You can think of nothing else. Acute pain is usually temporary. But while you are experiencing it, dealing with acute pain, takes priority and crowds out virtually anything else. Chronic pain on the other hand, is something that you deal with on a daily basis. It’s a little bit like having a rock in your shoe. It’s enough to be annoying. It slows you down. Often times the pain is not bad enough to motivate you to take off your shoe and get the rock out. You grumble, you complain, but rarely do anything about it.
Our financial system is experiencing both of these types of pain simultaneously. Inflation is analogous to chronic pain and bank failures definitely fall into the acute pain category. We have been hearing from federal reserve chairman Jerome Powell for months now about the importance of taming inflation.
Host: Victor Menasce