Thursday 21 February 2008

Global Credit Crisis Over? I Think Not

So the global credit crisis was a bit of a blip then and everything is starting to come back to normality again? This would certainly be the feeling you would get if you were to speak to the world in general about this somewhat 'unhelpful' and 'awkward' period in our economic history. The worst that happened was that Nortnern Rock was nationalised and everything is hunky dory now. Those of us who watched Channel 4's Dispatches programme 'How the Banks Bet Your Money' might be left with a somewhat different opinion.

This was a real eye opener into how deeply the credit crunch is being felt in the US. To see in stark reality how many houses are being repossessed right across this vast country puts into perspective the absolute human devestation being created by the short term greed of our financial institutions.

The problem is, this is not going away anytime soon. The losses which have been clocked up by the financial institutions will be calamitous and unsustainable for some of them, so you'd better be wary if you're snapping up bank shares because they look very cheap right now. The worst is, apparently, yet to come and some of those banks may well not be in existence in a few years time.

The dispatches programme is highly recommended viewing if you want to get something of a handle on this global problem that will be with us for some time yet. You can find a summary of its contents at

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