Monday, October 06, 2008

Dark Ages II just around the bend

During the past week, we have tipped over the edge, into the middle of the abyss. Systemic collapse is in full train. The Netherlands has just rushed through a second, more sweeping nationalisation of Fortis. Ireland and Greece have had to rescue all their banks. Iceland is facing an Argentine denouement.

The US commercial paper market is closed. It shrank $95bn last week, and has lost $208bn in three weeks. The interbank lending market has seized up. There are almost no bids. It is a ghost market. Healthy companies cannot roll over debt. Some will have to sack staff today to stave off default.
Again, whatever pissing in the wind governments will do will
bankrupt their citizens, bankrupting themselves.

The we're-all-in-this-together philosophy coming to fruition.

Now I'm reminded of the scene of Slim Pickens in the movie Dr.
riding out of the bomb bay on his A-bomb hollaring,