Monday, August 13, 2007

A Lesson In World Economics

As the World's financial markets start to recover from the 'jitter's' over the weekend, it is interesting to see just how entwined we, in the free world, have become, economically with the fortunes or otherwise of the US.

Some financial institutions in America offering 'sub-prime' mortgages, - those are loans and mortgages to high-risk lenders, were facing severe problems, which in turn, led to cobby-wobbles in the larger institutions which, if the crisis continued, would have led to the interest on my mortgage in the UK going up to pay for it.

Thanks America.

What, I think, was interesting, was that it was the non-US financial institutions, and in particular, the European Bank, that led the support and rescue operation, releasing funds to ensure the whole tottering edifice remains. Perhaps we are starting to see the end of the mighty dollar dominating my world - at least I truly hope so.

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