One of the many very solid links in that article (solid in that they quoted top level people IN the system), yielded the following piece from the former head of the Bank of International Settlements, William White:
“The situation is worse than it was in 2007. Our macroeconomic ammunition to fight downturns is essentially all used up. Emerging markets were part of the solution after the Lehman crisis. Now they are part of the problem, too.
Debts have continued to build up over the last eight years and they have reached such levels in every part of the world that they have become a potent cause for mischief. It will become obvious in the next recession that many of these debts will never be serviced or repaid, and this will be uncomfortable for a lot of people who think they own assets that are worth something.”
“This will be uncomfortable for a lot of people?!?!?” Yeah, about as uncomfortable as an unanesthetized root canal! What La-la Land are these masters of the world living in?
And as one comment said after one of the other linked articles, “I am truly surprised no one gets its importance….or does not care.” Personally, I’m not surprised – just amazed that such is the case. The analogy in the article was spot on:
I am often reminded of that woman in Anchorage, Alaska who jumped an enclosure fence at the zoo to get a closer picture of Binky the polar bear. These people have been made so inept when it comes to identifying threats that they will continue arguing with you as the animal takes a football-sized bite out of their meaty thigh.
Great article, Tec – thanks. I particularly appreciated all the links to original sources, not just an opinion piece with no backup. And in answer to the title question: the article’s cartoon at the top says it all. You either see it or you don’t.