This is just part of his article in Business Spectator - doesnt look too good, is a huge understatment.
The crisis began in America and it continues to worsen there, with yet another banking shock last night as State Street shares halved after the banking and investment firm reported a 71 per cent decline in 4th quarter profit and a $US10 billion write-down.
But right now the world’s money wants to be nowhere but US dollars. Specifically, there is now a run on the pound that is threatening to get out of control and sink us all.
The UK is a bigger, more dangerous version of Iceland. The $US4.4 trillion in foreign debts built up by British banks is twice the size of the economy, and 73 times UK’s foreign reserves.
Commentators in Britain are calling for Royal Bank of Scotland, Lloyds and perhaps Barclays to be fully nationalised to overcome the fact that the taxpayers are effectively wearing all the downside, but the banks are still being managed by the same idiots who caused the problem in the first place.
Those idiots have swung 180 degrees, from profligate lending to no lending at all; from frittering capital to hoarding it.
Similar calls for full nationalisation are being made in the US, with the example of Sweden in 1992 most often cited.