The Central Banker's Bank

Today's feature article is from the Sydney Morning Herald (link above) quoting the annual report of the Bank for International Settlements. The title of the article is "Great Depression fall looms".

'In its annual report the Bank for International Settlements noted that the conditions which led up to the Great Depression of the 1930s and the Asian crises in the 1990s were reflected in the current environment. '

Of course the article will be dismissed by most readers, most business people, most people in banking and finance, most economists. For most people they will need a 7% rise in their mortage interest rate, or a termination notice before they have a concept of recession or economic depression. When this horrible reality becomes apparent to all there will be one question asked, and it will be asked repeatedly "How did this happen?" Everyone will want to explain why they were betrayed or misled and how their government's central bank failed to protect them from themselves. Like the generations born in the 20s' to 40's our children will grow up in an environment where debt and incumberance are frowned upon and moderate living well regarded.