'Intelligent discontent is the mainspring of civilization.' -- Eugene V. Debs

Tuesday, October 14, 2008

Global Insolvency 

Another selection of essential reading, this one courtesy of Mr. Mortgage. Click on the link, and find two interrelated posts that reveal the extremity of the insolvency within the global financial system, and the exposure of US banking institutions in relation to Level II assets that aren't actively traded, but marked to market, like their more commonly maligned Level III relatives.

Mr. Mortgage again questions whether the $700 billion bailout is anywhere near enough to deal with the insolvency of the US financial system, a subject that motivated me to perceive more sinister motivations inherent within a capitalist financial system. He also notes that the frightening fact that the US system may be among the better capitalized ones when compared to the EU and Turkey. One suspects that even an initially mild recession would provoke serious defaults among these financial instruments, a subject that has been heretofore ignored. After reading these two posts, all I can say is . . . . Yikes! I try to resist a survivalist mentality about the future, but it can sometimes be difficult.

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