Michael Panzner hands on a piece from Naked Capitalism: expert, inside opinion is that the banks are so gorged with bad debt that America will mimic the "melancholy, long withdrawing roar" of Japan's ebb tide.
Here's a cheery thought. I've paid most of my bills for years by Direct Debit. Is there any circumstance where this could be risky, what with banks looking a bit shaky and various companies very keen to generate a bit more income? Who exactly guarantees the system: who will compensate me if it goes horribly wrong? How do I know that the guarantors will survive? Here's another one: who protects my deposits during the 2-5working days when cash is whizzing electronically from one bank account to another? The recipient account, or the originator account?(How on earth it takes days is a different question.)
James: if you want a chirpy free-range economist, try Don Boudreaux at Cafe Hayek (see sidebar). But then, he's a university professor with a bomb-proof pension. You know how everything seems all right (or easily fixable) when you're next to the fire after a good meal?
DM: our family solicitor advised many years ago never to pay by DD or SO, but to settle bills as they came in, and that after careful enquiry as to how the calculation was done. Make 'em sweat for it!
4 comments:
Just been reading some economist predictions at Google News. Not exactly bright and cheery, these guys.
And that's the best-case scenario!
Here's a cheery thought. I've paid most of my bills for years by Direct Debit. Is there any circumstance where this could be risky, what with banks looking a bit shaky and various companies very keen to generate a bit more income? Who exactly guarantees the system: who will compensate me if it goes horribly wrong? How do I know that the guarantors will survive? Here's another one: who protects my deposits during the 2-5working days when cash is whizzing electronically from one bank account to another? The recipient account, or the originator account?(How on earth it takes days is a different question.)
James: if you want a chirpy free-range economist, try Don Boudreaux at Cafe Hayek (see sidebar). But then, he's a university professor with a bomb-proof pension. You know how everything seems all right (or easily fixable) when you're next to the fire after a good meal?
DM: our family solicitor advised many years ago never to pay by DD or SO, but to settle bills as they came in, and that after careful enquiry as to how the calculation was done. Make 'em sweat for it!
Post a Comment