Sunday, October 30, 2011

The European Debt Crisis

People in expensive suits have been traveling to expensive resorts to stand in front of expensive cameras and assure us that everything's under control and not to worry.

Other people, is more modest suits, have been opining from their workplaces that this is nonsense and that the whole house of cards will be coming down pretty shortly now.

The gist of the problem is that governments have been spending money they don't have and now find themselves in the position of being unable to pay it back. We peasants understand that this usually means that someone is going to lose a lot of money and as things roll down hill, we are likely to find ourselves near the bottom.

Here's an animation that seems to sum things up nicely:

The remaining question is what to do about this if only to avoid being at the bottom of the rubble heap when the dust settles.

H/T to Perry at Samizdata for this one.


Anonymous said...

Wall Street banks should bail out the government.

Billll said...

They have. Usually at gunpoint.