Gas Guzzlers on Trial

Human beings are not clever enough to arrange a global recession. The actors strive to gain enormous local profits. OPEC seeks to maximize profits by raising prices and holding back on production. Food manufacturers run small farmers out of business and hold the lock on commodity prices. Mortgage holders ran toxic credit to unqualified home owners.Everybody knows how the stock market thrives with greed on the upside and fear on the downside.The economics is a thrilling drama. Last night FOX aired the Big3 CEO's. It was dramatic and tension-filled Christians in the lion's den.

Britain Bankrupt

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The Flow of Confidence

America became great with cheap credit. Borrowers believed their projects would bear fruit. The lenders used the loan payments to extend credit to new borrowers.

This worked well until a significant number of borrowers failed to make the payments. With inflows decreased the lenders lost confidence they would be paid back.

Suddenly, the new potential borrowers couldn’t find money on loan.

The intended projects never started and new job creation halted.

Rampant unsecured stock manipulation triggered the Great Depression. This time around the housing bubble burst.

By the time the Fed began to throw money around, almost all lenders and borrowers had lost the confidence to make a move.