View Single Post
Old 08-05-2011, 01:14 AM  
Paul Markham
Too old to care
 
Paul Markham's Avatar
 
Industry Role:
Join Date: Jun 2001
Location: On the sofa, watching TV or doing my jigsaws.
Posts: 52,943
Was the recent banking crisis just a rehearsal?

The recent banking crisis was sparked off by the Prime Mortgage crash. Brough on by investors, banks buying debt or lending to people who they shouldn't of lent to.

Watching the news today it seems Prime Mortgage weren't the only bad investment they made.

It now seems they were investing in countries they shouldn't of invested in.



This may look confusing at first, but take a minute to look at it. It soon becomes clear. Doesn't include Italy, which is the biggest problem.



Again we see the problem repeated. Investors buying into things that were best left alone. It's not just the Presidents fault for raising debt ceilings or Governments spending money they didn't have to make their economies look good.

The blame must also go to those lending the money.

Look at what brought about the 1930 depression to see the folly of buying pieces of paper over priced to an extent that buying them was foolish. People thought if they bought a piece of paper today, it would be worth 150% soon. Then got the shock of their lives when it was worth 50% even sooner.

And we give these brilliant investors billions in bonuses and treat them like they're so clever. Who here would invest money in Greece, Italy, etc?
Paul Markham is offline   Share thread on Digg Share thread on Twitter Share thread on Reddit Share thread on Facebook Reply With Quote