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Economy....Bugger.
Feb. 10th, 2009 11:28 amThere may be worse to come.
Now that many middle-class people are losing their jobs and unable to pay their mortgages, the exposure of banks worldwide to what were previously solid investment instruments in collective mortgages may well push us even deeper into the mire.
If the unemployment figures in the US reach 10% that means large numbers of mortgage defaulters will be of previously unimpeachable credit ratings....and all the world's banks will have huge investments in these, and their exposure to bad investments will make the sub-prime fiasco look like pretty small beer.
Oh shit....No wonder the banks that haven't been running for governmental assistance have been giving out bonuses as soon as they can. Next year, we're all going to be deep in the brown smelly stuff.
This isn't even worst-case scenario thinking. This is going to happen: and this may indeed presage a catastrophic depression that exceeds the levels of the 1930's.
We need to find some sort of programme to minimalise this, and I don't think even Obama is going to be able to attenuate the coming problems unless we all pull together and try to make things work without the special-interest pleading which has disfigured the present bail-out bill: because we're going to need another one almost immediately after this one has passed, and the next one better not be quite as flawed as this one.
Though our kids are going to be paying for this for some time to come, if we don't act, they're going to have similar levels of debt to pay off, and no significant income with which to do it.
Bollocks. Just as I was getting into my stride as an apprentice capitalist entrepreneur bourgeois rentier and sloughing off the last of my Anarcho-Syndicalist with Marxist sympathy leanings. Perhaps being rich isn't everything.
Now that many middle-class people are losing their jobs and unable to pay their mortgages, the exposure of banks worldwide to what were previously solid investment instruments in collective mortgages may well push us even deeper into the mire.
If the unemployment figures in the US reach 10% that means large numbers of mortgage defaulters will be of previously unimpeachable credit ratings....and all the world's banks will have huge investments in these, and their exposure to bad investments will make the sub-prime fiasco look like pretty small beer.
Oh shit....No wonder the banks that haven't been running for governmental assistance have been giving out bonuses as soon as they can. Next year, we're all going to be deep in the brown smelly stuff.
This isn't even worst-case scenario thinking. This is going to happen: and this may indeed presage a catastrophic depression that exceeds the levels of the 1930's.
We need to find some sort of programme to minimalise this, and I don't think even Obama is going to be able to attenuate the coming problems unless we all pull together and try to make things work without the special-interest pleading which has disfigured the present bail-out bill: because we're going to need another one almost immediately after this one has passed, and the next one better not be quite as flawed as this one.
Though our kids are going to be paying for this for some time to come, if we don't act, they're going to have similar levels of debt to pay off, and no significant income with which to do it.
Bollocks. Just as I was getting into my stride as an apprentice capitalist entrepreneur bourgeois rentier and sloughing off the last of my Anarcho-Syndicalist with Marxist sympathy leanings. Perhaps being rich isn't everything.
