From: Philip Dunn (hyl0morph@YAHOO.CO.UK)
Date: Thu Sep 27 2007 - 15:59:25 EDT
I read the first paragraph of part 1. According to Alan Woods, if Northern Rock had no depositors they would have been all right since there could not have been a run on it. The problem was that NR had been offering 125% mortgages at initially low rates to possibly sub-prime borrowers. Other banks, already chary of lending to each other even for 30 days, did not fancy the bet. The depositors were totally irrational. The foregoing notwithstanding, I have moved all my money out of mortgage banks. On Thu, 2007-09-27 at 14:55 -0400, glevy@PRATT.EDU wrote: > > May be it's me who does not understand the complexity > > of the theory, but I find all such pieces to be full > > of theoretical confusions and mixing of cause and > > effect. > > Hi Ajit: > > Here's another article (in this case by Alan Woods)that you (and Jurriaan, > for different reasons) almost certainly won't like: > > <http://www.marxist.com/financial-sept-11-part-one.htm> > <http://www.marxist.com/financial-sept-11-part-two.htm> > > It's very odd to call the current situation a "financial September 11", > isn't it? No one is actually suggesting that there were forces who > conspired to bring about the sub-prime housing crisis, after all. (NB: > regardless of who you believe was responsible for 9/11, _everyone_ agrees > there _was_ a conspiracy. As Richard Curtis pointed out recently, it's > really a question of _which_ conspiracy theory you accept, the official > state theory or alternative explanations). > > In any event, I'd be interested in hearing what you and others on the list > think are the causes of the current financial "crisis" (I put that in > quotes because you or others on the list may or may not believe there is a > crisis ...yet)? > > In solidarity, Jerry ___________________________________________________________ All new Yahoo! Mail "The new Interface is stunning in its simplicity and ease of use." - PC Magazine http://uk.docs.yahoo.com/nowyoucan.html
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