Lehman Brothers demise triggers huge default

Times of London ^ | 10/11/08 | Tom Bawden in New York and Suzy Jagger in Washington

[M. Espinola]

The Black Market is likely the only market functioning correctly.

[RSmithOpt]

It's simply a crooked plan to grow governments and the wallets of the elites under the guise of "it's good for the people".

Governments attempt to grow economics by making credit cheap.

Bad move this time by the 'experts'.

A country's economy can grow by increases in population that in turn increase demand for goods and services....more money changing hands.

However, new jobs, that are actually productive and are sustaining, i.e. not government jobs, must also increase with the tax burden remaining the same, most importantly in the short and mid terms.

If the latter isn't the case, the actual improvement in the overall standard of living cannot occur, therefore, no real growth in the country's economy. All other employment (jobs) are created from from the net gains of domestic product development, product manufacturing, coupled with raw material extraction, refinement, and distribution to include food and food products. Government, retail distribution and service sector employment all are built upon this foundation (hard industry).

A country like UAE invests in the known fact abroad, they usually makes good returns of such.

If we look at the continued courtship of contracts and ownership of foreign governments with other countries raw materials to fuel their domestic industries, we can understand that basic economic principle. From that we also can see the significance of domestic construction industry tied that function.

Funny how the 'experts' dream up 'new' economies omitting that basic foundation. Even if a small country is a travel hot spot for vacationing, and that's their main economic stimulus, they are still depending on other countries for that base foundation to function efficiently with those foreign countries' abilities to manage real growth.

[TigerLikesRooster]

Whether they intended or not, the scheme of new economy turn a country like U.S. into a few pockets of giant metropolis and the vast area for subsistence farming and water supply.

Most of the goods are imported as well as lots of food and raw materials.

America becomes NYC, Chicago, LA, and a few more metropolitan regions, along with Midwest corn/soybean field and a dozen rivers for cities' water need.

[TenthAmendmentChampion]

That is a great explanation. Business hates one thing more than hard times, and that is inconsistency. What kept the Depression so bad was the government’s unpredictable decisions.

You can imagine the mentality inside the banks. No one knows what to expect and so they play safe.

[TenthAmendmentChampion]

I wonder how many pension funds and insurance companies had money in that House of CarDS. A sobering thought.