uh oh

[Peter Korsten]

Op 10-6-2010 0:26, The Dong schreef:

> Not that I believe there was even any problems AT ALL. The bank
> sub-prime shit was all a big CON; it is supposed to convince us all
> there is an immediate problem that needs remedied, when in reality,
> there is nae even a whiff of impending doom.

The sub-prime business is basically the result of the belief that all 
economic growth is good. Now usually, it is, but you have to look at 
what caused this growth, and whether or not you're actually looking at a 
bubble.

The western world, ever since the sixties, has been happy to shift 
manufacturing (which brings in real money) to other countries in order 
to concentrate on all sort of financial products (which brings in 
not-quite-so-real money, but in far greater amounts).

The problem with having a bank collapse is that it's not quite the same 
as, say, Sainsbury's going out of business. Banks provide capital to 
business, so that they may grow and generate wealth, quite apart from 
all the other financial services that banks provide, like simply paying 
someone. If that stops, everything that depends on banking stops as well.

So governments were posed with the rather nasty problem that something 
would stall the economy, because of bankers' greed and governments' 
complacency in the past, unless they intervened with taxpayers' money.

Anyway, hopefully these governments will now find a happy medium between 
letting markets prosper and nannying them.

- Peter