In case any readers are sick of the Casey Anthony parade, and long for the more elevated discourse that this blog is famous for, I offer some recent musings from Michael Hudson:
The financial road to serfdom
Financial lobbyists are turning the English language – and economic terminology throughout the world – into a battlefield. Creditors are to be permitted to take the assets of insolvent debtors – from homeowners and companies to entire nations – as if this were a normal working of “the market” and foreclosure was simply a way to restore “liquidity.” As for “solvency,” the ECB would strip Greece clean of its public sector’s assets. Bank officials have spoken of throwing potentially 150 billion euros of property onto the market.
Most people would think of this as a solvency problem. Solvency means the ability to maintain the kind of society one has, with existing public/private checks and balances and living standards. It is incompatible with scaling down pensions, Social Security and medical insurance to save bondholders and bankers from taking a loss. The latter policy is nothing less than a political revolution.
The financial crisis thing is just playing itself out under the radar. I may have more to say about it soon, but for now you can read the linked article, or follow the blogroll link to Hudson’s blog and get your fill of the dismal science, for those so inclined.