Is this a good summary of the financial mess?

[EternalOptimist]

Human beings are great at concepts. Take something really simple and turn it into an abstract. It's where all the profit is

people who are good at abstracts get rich, and good on them. But people get used to thinking in abstracts and use them sometimes, just because they can. even when its mad to do so.

All this bollocks about refinancing bonds with other bonds, is bollocks. Its a payday loan.

If you run a little surplus, you dont need to borrow. If you dont commit to emergencies, you dont need to borrow.

Borrowing is bad. and sometimes(often), so is lending

[sasguru]

Borrowing is bad.

Incorrect. Without credit no one would have found Australia, America, India.
It was all done by spekulants who financed ships and their crews using credit, in the hope of big returns.
If you look at the big picture what is happening is that capitalism is having one of its periodic, if painful, purges, ready for the next round of innovation.

[suityou01]

Incorrect. Take a pinch of credit, add a dash of exploration, cook at gas mark 6 for 45 minutes et voila the new world.

WHS

[EternalOptimist]

Incorrect. Without credit no one would have found Australia, America, India.
It was all done by spekulants who financed ships and their crews using credit, in the hope of big returns.
If you look at the big picture what is happening is that capitalism is having one of its periodic, if painful, purges, ready for the next round of innovation.

And you think the world is a better place with Australia America and India ?

cretin

[SueEllen]

And you think the world is a better place with Australia America and India ?

Without India we would be eating a very boring diet.

Without Australia we wouldn't have had a place to get rid of petty criminals

Without the Americas we would not have been able to starve the Irish.

Anyway they all had people in them so weren't discovered and also known to some others in Europe. The credit just helped us to raid the countries of their natural resources.

[EternalOptimist]

Without India we would be eating a very boring diet.

Without Australia we wouldn't have had a place to get rid of petty criminals

Without the Americas we would not have been able to starve the Irish.

Anyway they all had people in them so weren't discovered and also known to some others in Europe. The credit just helped us to raid the countries of their natural resources.

Without India, we might have to subsist on boiled potatoes and roast beef, but at least our IT would be in safe hands

Without Australia, there would be one less whining accent in the world

Without the Americas, there might be a few more Irish, but at least Football would be football

[Cliphead]

Without Australia, there would be one less whining accent in the world

What's the difference between an Aussie and a 747?







The 747 stops whining when it lands.

[Sysman]

Why would it not get worse? who in their right mind is going to risk buying government debt when it is about to go bust? Who in their right mind would lend money to someone with a track record of becoming insolvent? If one Eurozone country can go bust then why would anyone invest in other countries with similar debts.
the spiral has begun mark my words

When whole countries fail, it lends new meaning to the phrase "too big to fail".

The possibility of war was raised over lunch the other day. Not a pleasant thought...