Author Topic: Falling World Markets

librarian

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Falling World Markets
« on: September 15, 2007 »
Imagine a boat. The boat has a lot of people on it. A person on the boat spots a small leak in one side. Everybody rushes to the other side of the boat. The boat is on the point of capsizing. Everybody rushes to the other side of the boat. The boat is, once again, on the point of capsizing.

This goes on for a while. One of two things can happen.
a) everybody gets very tired and sits down for a rest.
b) the boat falls over and lots of people drown

This is a model of how capitalism works. It's not smart, it's not productive, and it's kind of silly. But there you go. Rich people who know better lend to poor people who don't. The poor people buy houses, but, when they realise that the price of the house is no higher, or, indeed, lower than when they bought it, they leave town. This makes the rich people the owners of lots of crap houses (and poor housing in the US is really, really crap). So the rich people attempt to sell the debt to people in Belgium. Who then panic. So all the people who own the debt start to offload all the good stuff to cover their losses on the debt. When I say people I mean computers that are pre-programmed. It really, really, cannot get stupider.

This is why capitalists should be decimated on an annual basis. Plus it would cheer me up.