Greedy Guts Itself: The Fallout Update

Greedy Guts Itself has had widespread consequences – collateral damage that was  either not anticipated or, more likely, simply ignored by the round-up of Usual Suspects like an Anthony Mozilo, the Quants and every Big US Bank and its CEO that has foreign Sovereign Funds as new large shareholders. This section will track the spread of financial radioactivity from the sub-prime fiasco:

Falling Dominoes Credit Crunch – for a long time the US economy  has been driven by what Financial gurus have been calling the incredible power of the US consumer. But others have cautioned that those  consumers have been going into debt bigtime – more than a trillion dollars of credit card debt according to Business Week Feb 18th article. Here is one view of the economic consequences now that housing values have declined by 25% and will do another 25% fall by this time next year according to many. And houses have been a bastion of  consumer wealth calculations.

Lawsuits and legal troubles for 2-3 times as long as it takes for all the bad loan instruments to unwind and/or explode like debt charges of losses in various financial institutions.

Continued breakdown of trust among financial institutions as the major players attempt to duck out of trust responsibilities, rehire the malfeasants, and quickly restore the SNAFU conditions that lead to High Risk Mismanagement.

Loss of US Central Role in Financial markets as better World Financial Risk managers emerge in many World Financial Markets.

Decline of US Economic, Financial and Technical Power and Influence as spending frivolously and collectively beyond its means with ever more divisive HyperStar Compensation undermines basic political, economic, and social trusts.

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