A couple of other thoughts popped into my head after writing that last post.
In no particular order:
- I wonder if the lack of credit available is a result of foreign governments, such as China, basically decided to stop propping up the US spending spree? If so, this looks a lot like the scenario George Monbiot outlined in his book Age of Consent.
- Given that the market has decided that these loans are too risky, why on Earth does it make sense for the public to underwrite risky investments like this?
- I wonder if now is the time for the public (and US politicians) to get behind the Code of Corporate Citizenship – does this crisis open a window of opportunity to push this through?