Friday, 5 August 2011

Final Financial Nosedive?

We've been propping up the busted banks for over three years now. We've poured billions into indebted nations and now we're entering the finale.

The sane people are heading for gold and other safe havens, the insane are proposing to borrow more and try and prop up the rotten system.

It would have been better if the banks that had been sunk by bad debt had been allowed to fail and those with sense not to get involved could pick up the pieces.

Now it really is starting to unravel. American politicians wobbled for a week over increasing their debt and that lack of confidence has been enough to instil panic in the markets, which are starting to nosedive.

This may well be the start of the long-needed global revaluation. It will be rough, but it is necessary. For too long have we lived hyped-up above the true value of our net worth. Houses and taxes need to be reduced to a realistic and affordable level.

Until that radical idea isn't embraced, we'll still trudge along, slowly bleeding to death. We need a target, we need a plan of how to get there and above all we need leadership to get us there. We have the worst of all worlds, we have none of the things that will save us.

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