crisis Pantomime lack of liquidity and credit
past few months have been talking about the lack of liquidity as if it were the source of misfortunes. After the failure credit as a driver of business disaster. Tuesday, May 5, 2009
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is very common to confuse the consequences with causes because they occur simultaneously. The other day an acquaintance told me how fucked up it was Spain because it had lowered its debt rating. At no point was raised that what had happened was that he had lowered its debt rating because he has screwed.
This game changing consequences for the reasons given much play. Now We are toying with the lack of credit as if the cause of the bankruptcies. I've heard theories about how the crisis of 29 was generated by the lack of credit, and to me the thought.
now experiencing a crisis of fat in real time, with the invaluable help of the blessed www, I realize how twisted the concepts to find the culprit that no blame.
the outbreak of the financial and real estate bubble, what occurs is an increased risk, but rather a proliferation risk, better risk rises exponentially. During the growth of the bubbles, the risk is almost gone, growth itself carries with it a wave of benefits, saving money and circulating credit makes pr acetic anyone or anything is insolvent. Demand grows and grows.
The match is on and everybody passes it happily. Everyone used to illuminate your business, until it's time for change in trend. As on all who spent the match started to realize almost the same time, that the match is on the finger and to be burned. Then there was the risk that anywhere, appears everywhere, because everything falls apart. Appearing
risk, credit contract, but no contract can not, indeed should not no contract.
The guy who was a builder begins to have a very high risk of default since. The brick company too, but he does not realize at the time. The employee of clay too, but not realize it, and the employee car factory, and the computer company.
all start to have a very high risk, but they are going to the bank for a mortgage. And are surprised that it is not granted.
Companies should always be a lot of money to each other, but yet no one realizes that the money is gone. The chain is broken and they will not charge, but do not see it and still think your problem is not having a credit for a temporary situation, when what we have above is an irreversible ... to hit bottom.
The lack of liquidity and credit are consequences, not causes. The fact that these consequences will catalyze the process of decomposition, is what leads to confusion with feedback. They are not fed back the process, but only accelerators. The fact that world governments are supposedly acting to inhibit the harmful effects of the catalysts is never going to stop the process, only slow it down.
If, moreover, in their attempt to stop the process, just slow down, what they do is create more debt and more risk, what they are doing is digging a deeper grave to which we are going down slowly.
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