Friday, 14 March 2008

Debt IS Money

First off, I'm no financial expert. I work for a firm that is sub-connected to the Financial Sector, I'm not fully educated in Financial markets, but do get some of the basics.

Anyway, I quite like reading Robert Peston's blog (BBC Business Editor). I dont confess to know all the terms that he uses or what some of the implications are, but it does give the normal joe an insight into whats going on and what could possibly be coming the publics way anytime soon.

I was reading this evening about the US investment bank Bear Stearns and how its an equivalent disaster for the US Fed as Northern Rock was for the Bank of England. Then I started reading some of the comments... it always helps to hear what others have to say on the subject. I came across a comment from Eugene Walker who said:

Where does all this money come from we ask ?

Watching this video is well worth 47 minutes of anyone's time.

Now I've only watched 25 mins of the 40 odd on offer (and I'll definately be finishing it).. so far I'm impressed with the way the video decribes the senarios (I'm a normal joe remember!). I believe Eugene is absolutely right with his comment about a good use of anyones time.

But I guess more importantly I'm a bit taken back by my new found knowledge. Its quite astounding the whole debt system, but honestly if you understand it rightly, absolutely necessary.

10 minutes after watching the video, while my brain was mulling over money in general, a fraise popped into my head.... 'Money makes the world go round'. Well clearly thats not true...

Debt makes the world go round.

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