Yes, I know that there is not enough money in the WORLD to pay off the derivatives market. I know that Will Hutton is right when he says that we are sitting waiting for the approaching hurricane to strike, and all we are feeling now is the head-winds.
But when money tied up in debts has become so crazily virtual that it no longer has any meaning, then I actually think it may end up having less real power to hurt than we think. Is that naive and ridiculous? Probably, and I'm not enough of an economist to put this argument coherently. But my hunch (and I tend to be good at hunches) is that this is a hurricane that will miss the levees, and veer off to dissipate itself relatively harmlessly.
Meanwhile, we make more bags. LOTS more bags, because we believe that they will be wanted. When you're talking gadzillions of trillions, what's $22? I think many people will have much the same attitude.
Labels: disaster, financial crisis, hurricane, optimism, will huttonLinks to this post