26 January 2010

Pass the Parcel

It’s the last game of pass the parcel. When the tech bubble burst, balance sheet problems were passed to the household sector [through mortgages]. This time they are being passed to the public sector [through governments’ assumption of banks’ debts]. There’s nobody left to pass it to in the future.
David Bowers of Absolute Strategy Research

1 comment:

CrisisMaven said...

Great Blog! Just put you on my blog roll ... And as for that passing the bucket through mortgages ... only too true and only the beginning:
Of Mortgage Brokers, ARMs, Attrition and Marathons