Tuesday, July 3, 2012

When Pop Culture And World Finance Meet

I don't know enough about world economics to even think about commenting seriously.  Blogging, of course, means one frequently comments with insufficient information. The world seems fixated on Greece, Italy, and Spain.  This BBC article illustrates that the Barclay's situation may cause Britain major economic woes:
The chairman resigns to save the CEO. The CEO makes a public threat to drag the central bank into the mire. And the previous government. And the Treasury.
Next morning, the CEO resigns and the chairman re-installs himself to "oversee transition". The police, who said they could not prosecute, now say they might.
You have just seen the British establishment operating at a level of panic and indecision on a par with the Norway disaster in 1940. And it is not over.
These are people whose job is to speak to each other on a daily basis. But trust is shattered at the very top of the financial system.
Consider this: Barclays is the biggest lender to small and medium-sized businesses in Britain.
Right now its regional offices will be making decisions that can kill or cure the companies that form the backbone of the UK economy.
I suppose the first thing that should have come to my mind is Lehman Brothers or one of the big American banks that helped begin the Great Recession.  Something about that last paragraph, however, reminded me about this exchange from Star Wars: A New Hope, the original Star Wars movie.
Governor Tarkin: The Imperial Senate will no longer be of any concern to us. I have just received word from Coruscant that the Emperor has dissolved the council permanently. The last remnants of the Old Republic have been swept away forever.
General Tagge: But that's impossible! How will the Emperor maintain control without the bureaucracy? 
Governor Tarkin: The regional governors now have direct control over their territories. Fear will keep the local systems in line. Fear of this battle station.
Fear? Got that all over the world.
Regional leaders in charge of the empire? Got that.
What's left?



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