Thursday, October 09, 2008

Good money after bad

So the UK is also resorting to fund and forgive the past bad practises of their banks. 

What surprised me, was not that we are bailing out the Merchant Bankers (cockney rhyming slang pun fully intended) but that the amount of money on offer is almost the same as what is being offered in the US.

Is the size of these two nation's banking sectors really equivalent?

I bought the flat where I live in Brixton, for £18,000 in 1985.
There was a time when it became worth a large fraction of a £million!!!
In fact there were several years in which the value of my flat increased by more than I earn working!!!
This always seemed particularly mad to me ...... I was left wondering “what does that mean?”, “where does that money come from?”, “what does that mean for the currency?”.

Well it is a bit clearer now, we have been living in a “consensual hallucination” of a functioning economy. All this so called wealth has been an illusion, one that future generations will pay for, along with the price of our profligate environmental impact.

All we have to look forward to as we get older, is being despised by the young for our lack of foresight and restraint. Yummy!!!!



1 comment:

Andrew Savory said...

Sadly not all this so-called wealth was an illusion, as a lucky few criminals managed to extract it from the system before the system reset. For those thieves and crooks (or bankers, if you prefer), the wealth is very real, as is the yacht and the fleet of fast cars.

Whilst I understand the need of the government to prop up the illusion in order to make the world go round, I can't help being bitter that we have to pay for it.