Thursday, October 7, 2010
Graphic Illustration of Why Superficial Financial Fixes Will Fail In An Environment Where Giant Banks Are Allowed to Hide Massive Debt
I've also repeatedly noted that the size of the derivatives market dwarfs the global economy - and forms a giant overhang over it - and writers such as Chris Floyd have argued that there is "not enough money in the world" to pay off the derivatives debts.
But sometimes images can illustrate what words can't quite convey:
Indeed, the failure of governments to force the giant banks to write down their debts is dragging many businesses, cities, states and entire nations into the abyss:
The only way to plug the holes and save the entire global economy from falling in is to force the big banks to write down their debt.
(Click any image for larger version.)