Drift Monkey said:
BlueStar said:
MystikEkoez said:
BlueStar said:
Well, yes, what happens in other countries does matter to other countries. I thought this kind of insular thinking was just a cruel American stereotype
If this is your way of thinking, you clearly have no idea how downhill the economy is going on here.
Uh, yes I do, because it's had an absolutely enormous effect on the economy here, the American sub-prime mortgage crisis was the root cause of the huge credit crunch we're seeing over here as so many British banks had their assets tied up in bad debt linked to those markets.
Foreign investors loved the bailout! Bad debts were bought by the American people.
The banks pleyed pass the parcel with the debts, packaged them up and sold them on to each other. When the music stopped and the penny dropped that these "assets" were in fact worthless if the people who owed the money were going to default in large numbers, banks got paranoid and refused to lend to each other in case they collapsed. UK banks were hit pretty hard, although not as hard as Icelandic banks
France seems to be one of the countries in the best position to weather the crisis, because of traditionally tight-ass attitudes to lending money