Sunday, November 16, 2008

A Matter of Trust

My earlier post, 'Udayan in Amritsar' can be read here

G20 meeting
The G-20 leaders have met in Washington. Will the meeting solve the economic crisis ?
Bloomberg reports:
The G-20 leaders, representing 90 percent of the world economy, blamed the crisis on investors who "sought higher yields without an adequate appreciation of the risks."
Response from globaleconomicanalysis :
Banks and brokerage packages sold poison apples. The G-20 is blaming those who bought poison apples not those who knowingly sold poison apples.

Surely these bailouts will help ? The answer seems to be, not really. The Price of everything says:
We are only just entering synchronised global recession. For the immediate future, bracing for further asset deflation and concentrating on capital preservation are the core priorities. But with every announcement of a further government bail-out to be paid for by future tax-payers, sceptics might rightly wonder whether a crisis brought about by easy credit is going to be resolved by more of the same.

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