lending borrowed money
18 September, 2008 § Leave a comment
some years back in high school, i was struggling to comprehend what it took in order for events to unfold as they did in the run-up to the Asian financial crisis. i believed back then that the spiral was born when people stopped believing in the institutions, all sorts of institutions – the banks, the insurance houses, the government. and the doubt that sows its seed in the human heart propagates by word-of-mouth; its growth catalysed by a cocktail of hearsay and the lack of factual information about the way the world is.
it was like someone called the bluff. or as Oliver James of The Guardian puts it:
Yet we have many financial institutions that exist through lending borrowed money, rather than their own. How could they allow a system in which many of the financial institutions were living on the never-never?
back then i also believed that globalisation simply meant that we were not alone, would never be alone again. something we cannot undo. should not undo perhaps. when the dust has settled, we can make something good out of our connectedness.