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Monday, 11 June 2012


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Of course they're insolvent. Most (all?) of the banks in the world are insolvent. What you have to ask is why G Broon decided to pass much of the burden from the banks' bondholders on to the british taxpayer. When you've answered that, we can jail the bugger.

One of those longer red blocks near the bottom is looking after most of my worldly wealth, in the form of a deposit account and an ISA. Huge, astronomical sums of money. If they can manage to turn my trust and such massive amounts into a negative figure, then there is truly something wrong. Maybe they don't deserve it. I might even withdraw it, and then the buggers would be in trouble...

Banking busts and prodical governments have existed forever, the problem is always dumped on the common herd because it must be - the lost cash never actually existed and there is no one to grab it back from. Take a look at Fred Schwed's 1940 book 'Where are all the customer's yachts?' (an old Wall Street joke) in which he explains why banking regulation will always fail.

Relax, debts can be run up forever - until the Sun expands to Earth's orbit and crisps debtors and debtees alike, the trick is to give the illusion debts will ever be paid off. What is in doubt is whether any individual country's debts can be expanded - confidence can evaporate here and move over there.

Buddies, can you spare a dime?

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