Are you confused about the financial crisis in the USA that threatens to cause a global recession? So was I until I saw this humorous, but spot on presentation of how it all works. It’s like a weak computer program. As long as a certain set of assumptions hold true, you don’t have to worry about processing certain errors. Once conditions change, you let the machinery run and all of a sudden things come out what they come out, and it’s not what you like. The false assumption was that real estate prices would continue to go up. While in general that is true, as Roy Rogers said, “They aint making any more of it”, and the same applies to petroleum, economic conditions can cause local drops in prices which are significant enough to cause repercussions.
The unfortunate end result is that the rich assholes still have their money in Cayman Islands accounts and it is us poor taxpayers, already flattened by the burden of the ridiculous war in Iraq, that will ultimately shoulder the brunt of this one too.