Why we’re in the financial mess we are now September 19, 2008Posted by Al in : politics,scary , trackback
If you were wondering exactly why the world’s financial markets are collapsing, then I would suggest you pay attention to this short, but useful Sub-prime primer. It’s amazing that people still don’t understand that the current financial model, that has been built over the last century or more, is actually flawed, and that continued growth is not a given. It’s also ridiculous that some of the largest financial institutions in the world were willing to lend money to people who would never be able to pay it back, had no security for the loan and then other large financial institutions bought these unsecured loans for far more than they were really worth. One day someone will manage to stand up to these institutions and point out that a radical rethink is required.