don't recall where i got this image - happy to credit or remove |
we learnt (or were taught) to want to have more stuff
the stuff we wanted became like fashion - changing frequently
so we all personally borrowed more money to afford all this
stuff
at the same time we gradually got more connected virtually
(via the internet)
which relied on us being the product
yet increasingly we were less connected in reality (less
community)
meanwhile our governments reflected our borrowing behaviours
and so financed much of the stuff they wanted (on our
behalf) via borrowing
sadly at the same time
the financial sector invented increasingly clever ways of lending
money to others
so clever that nobody really knew who held the risk if
somebody defaulted on their borrowings*
and at the same time the rewards to individuals in the financial
sector for doing so rocketed (and shareholders didn’t call them to account)
so people and governments who wanted more got loans to get
more
and then the glitch came – some people who had borrowed the money
could not repay it
nobody knew which banks were most at risk from such bad
loans due to the complexity*
so governments got worried and guaranteed the banks wouldn’t
fail (capitalism irony)
the bank problem became a sovereign debt problem
and now governments quake as the market hikes their lending
rates
so we all wait to hear who will take the loss from
loans that will never be repayed
-
shareholders of the institutions that lent money
to the wrong people?
-
or tax payers?
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