Revisiting The Limits to Complexity: micro managing your way to macro collapse…
Friday, 4 November, 2011 Leave a comment
…without losing office or wealth!
PLEASE do yourself a favour and read the full article and ask yourself IF there is any basis to trust in Political and Financial institutions when THEIR agenda(s) have ensured that the handling of the financial crisis has fuelled “civil protest” and, may yet, lead to widespread unrest. By recapitalising the architects of financial collapse Governments and Regulators have allowed them to, further, profit from the economic turmoil they created and for which the weakest in society will continue to pay a heavy price for many years to come.
The graphics are my own. They have embedded links, I hope they help!
"…these same banks were also allowed to securitize many of the underlying loans, sell them off to various institutional investors and market derivative instruments to those clients who wished to gain exposure to the global sub-prime mortgage bonanza. When the greatest financial ponzi scheme known to man eventually collapsed in 2007-08 and it was clear that the global economy faced an imminent depression, governments worldwide decided to "respond".What this response amounted to was an attempt to maintain economic and financial complexity by adding on layer after layer of ever-more complex structures, and suspending/manipulating any measure of reality that was in the least bit accurate.
Those layers, in part, took the form of unprecedented fiscal and monetary policy, which funneled trillions worth of taxpayer-guaranteed funds to banks that were deemed too complex too fail. So how did this big dose of complexity fare after the flames died down and the smoke cleared?"
Current societies…are characterised by their extreme complexity at a moment in history in which traditional political institutions have lost much of the power, a power which has now passed into the hands of multinational companies with their relocation strategies. In this situation, a growing deregulation can also be observed which, in turn, redounds in the appearance of new risks and uncertainties.
- FT.com: Financial institutions stare into the abyss (fitforrandomness.wordpress.com)