I think I heard something about going through a financial crisis, I mean it is all over the news. Well anyway I was listening to a talk show on the radio and the host was interviewing a congressman who is on some finance committee. The host asked the congressman to explain what was actually going on. The congressman was trying to explain, when he said a certain thing is causing the problem and that he cannot explain what it is. And I thought that if this guy who is on a finance committee in congress and can't explain it, how the f--k am I going to understand it. Holy crap. And all they want is 700 billion dollars to make it go away. HELP!
Anyway here is a quick explanation about where the two parties stand. It is very clear.
2 comments:
No offence UW, but this is just an example of how brilliant you seppos can be sometimes.
Issue loans to Ninjnas on the back of property price increases. Property prices stop increasing. Ninjnas stop repaying loans. Banks bad debts increase and capital adequacy & liquidity get squeezed. Banks stop lending. Listed companies can't refinance debt. Listed companies and banks fold. Share market gets battered.
To compound the situation, regulators who have been asleep at the wheel to allow loans to ninjnas in the first place try to bailout the greedy. Bailout plan is half cocked and defeated. Market cops another battering.
And it is not $700 million but $700 billion we are talking about.
I wouldn't be so bitter, except economies better regulated than yours are being affected too. Like my own.
It's what happen when there is no oversight. The only place we do not need oversight is in La La land. Where everybody is looking out for everyone else. And things are done for the common good. And where everyone is honest.
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