Comments on: Polly, Polly…..

By: Idle Pen Pusher

Idle Pen Pusher — Sun, 25 Jan 2009 04:32:36 +0000

Depressing.

I also find it almost impossible to impress upon people the fact that global net debts are always zero. I am usually confronted by a patronising look and reminded that interest piles up and makes the debt bigger while the lender’s asset remains the same. Sigh.

By: Dennis The Peasant

Dennis The Peasant — Sat, 24 Jan 2009 18:30:19 +0000

Probably got her stats from Richard Murphy.

By: Gareth

Gareth — Sat, 24 Jan 2009 14:01:33 +0000

The debts are ours not the banks.

£30 of assets for every £1 of liabilities doesn’t sound so bad does it…

But is Polly only half wrong? The banks turned their assets into debts for themselves by CDOing them. The assets are now dropping in value but the CDO debt remains. Falling house prices have also stemmed the cashflow from creating new CDOs.

By: john b

john b — Sat, 24 Jan 2009 11:13:47 +0000

Hmm. If that’s a commonly-held view among the ignorant masses, it’s no surprise that they’re baying for the lynching of the bankers…