Some years ago I was sitting in the accountancy module B212 ‘window dressing and off balance sheet techniques’ during my Masters course when the lecturer at the time piped up that one of the biggest fears in finance was the fact that mortgages were lent long whilst money was saved or acquired from the market short. In principle short money can be called for very quickly whilst paying back a mortgage on demand is impossible. A interesting discussion took place as we considered the possibilities of savers suddenly loosing confidence and withdrawing funds to stuff under the mattress or inter-bank lending suddenly drying up. And the fact that as mortgagees we would be unable to pay our loans on demand loans so all chaos could result. We also in passing have a quaint notion that the money in the bank is actually ours to call on on demand – look to how Cyprus handled their depositors!
There is a great debate in the UK about cloning and other research that aims to stretch the limits of what is allowed by an ethical society. Most of the debate is posed in terms that service to defuse debate and restate the authority of those in charge of the country and the subordination of the greater mass of people to their will
The Credit Crunch in the UK is being used to divert attention from the incompetence of the management of the economy over the last ten years. Quick to claim credit in the good times politicians in the UK are running for cover and avoiding blame when the climate turns bad.
Gordon Brown tries to convince skeptical voters he is the man for the job