Friday, September 19, 2008

It won't work

Karl Denninger pours scorn on the latest banking "solutions". I don't pretend to be as techno as he, but I trust my instincts, and they say that this is all like a Christmas play. If Fairy Bogbrush can wave her bristly wand and shazam! the grisly bathroom throne of modern finance is sparkly clean, then why can't she wave it again and make us all rich into the bargain?

But if it was that easy, who'd staff the checkouts, sweep the streets, change the bedpans etc?

Nope, it'll have to be paid for somehow, and I don't think the rich have reserved that pleasure for themselves.

2 comments:

John East said...

Karl is very clever and knows all of the numbers, but as a simpleton I only have to take on board one simple observation. The multi-trillion debt is not eliminated by either moving it elsewhere or by monetising it with freshly printed crispy dollars.

My fear over the last several months has been deflation hitting my gold investments. I no longer have this fear.

SACKERSON said...

Think you're right, JE - only outright failure would purge the loss. But the gold market is too small a lift for everyone to get into.