| Global insolvency / bankruptcy Position1 #7131 The term “credit crunch” misleadingly suggests that the problem is merely one of confidence, that calm will return if liquidity is introduced to the system—when, in reality, the real issue is one of solvency and systemic bankruptcy. |
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Author: Mark Shuttleworth
Cited by: David Price 0:21 AM 10 October 2008 GMT
Citerank: (4) 7133Companies bought on borrowed money fail to service debtThere will be a steady flood of announcements of setbacks, restructurings and bankruptcies as companies that were bought with borrowed money, n the private equity boom 2003-07, turn out to be unable to service their debt.1198CE71, 7179Hold financial institution earnings in escrow for seven yearsFinancial institution earnings should only be recognised over a seven year period, and bonuses based on those earnings should be held in escrow until that seven year period is up.959C6EF, 7182Protect individual depositors in regulated banksDepositors in regulated banks should be protected by the governments that run the regulators.959C6EF, 128954Hold financial institution earnings in escrow for seven yearsFinancial institution earnings should only be recognised over a seven year period, and bonuses based on those earnings should be held in escrow until that seven year period is up.959C6EF
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Excerpt / Summaryhttp://www.markshuttle...
"The term “credit crunch” is very misleading for the current crisis. It suggests that the problem is merely one of confidence, that calm will return if liquidity is introduced to the system.
My view, though, is that the real issue is one of solvency. This is the systemic bankruptcy of 2008." |