Sunday, July 8, 2012
Critique of UK Govt’s austerity failure, versus US Govt’s expansion success
Journalistic analysis of the situation the UK is in - refers to mal-investment: "creditfinanced investment that results from this â€œmal-investment.â€ Malinvestment manifested itself mainly in rapidly rising housing and asset prices. These prices were unsustainable, because they were based on debt, not genuine saving. Once the default rates on mortgages went up, the banks found that their AAArated assets had become junk. So they stopped lending." The "Photoshop of Kate" controversy is a storm in a tea harbour. People don't understand that its not about Kate, it's about the UK. We ALL know something is wrong, just nobody is admitting it. Hence the future figurehead of a future failed economic state. Plus it got our attention right?