A succinct summary of the impact of the dislocation of financial markets so far is presented by the BBC here. It summarises the numbers; the losses to banks, homeowners, investors and policymakers.
Unfortunately what is also clear is that none of the leaders in these areas have presented a way out. They talk about rebuilding confidence and trust in the markets – which is of course what the world of money is based upon. However, none have been bold enough to highlight the problems of moral hazard and moral neglect among fiduciaries – among banks, borrowers, investors and policy makers – that is, among themselves.
Furthermore, it is a long way from the culture of consumption and convenience of today to the required mindset stated succinctly by a 90 year-old acquaintance with whom I dined recently: “I don’t buy something if I can’t afford it”.
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