The news this morning stated that everyone was kind of happy with the new developments in Greece, but that now Italy was the big story. Italy, with debts bigger than Greece and a playboy Prime Minister who had damaged the credibility of the government probably beyond compare.
OK. Fine. But my question has to be, “How is it possible that this is a surprise?” It’s not like any of the events or conditions that has brought Italy to this point were kept secret.
These people who are making world class decisions should be able to look at the long term. They should have seen this coming (-and maybe they did-) and have taken some kind of action. -Unless, of course the whole mess is actually a lost cause.
It’s the same situation that existed leading up to the crisis of 2008. The financial experts seem to be partially blind. Only a few explanations are possible:
1. These experts are truly clueless and incompetent. If this is true, we really are screwed, but I don’t buy it. Given the proper information I could have seen any of this coming. You can’t tell me that they didn’t and don’t.
2. They see it, but there’s nothing they can do about it. It is truly beyond their control. In some cases this may be true, but the financial abuses of hedge funds and unsustainable mortgages in the U.S. were not unavoidable.
3. They see it and they want it to happen, so they don’t interfere, …or perhaps even encourage it. Why would they want it to happen? Follow the money. Are their people who benefit from these collapses? Does it marginalize some people and concentrate wealth for others? Look at the stats. Does it provide another fear factor to replace the political climate following 9/11, now that this spectre is fading? Look at the political rhetoric (-not only in the U.S. but even in Canada.) Crisis breeds fear. Fear breeds more compliance towards control by authority (which isn’t always the government). Look at the attack on unions in both countries, which I admit is sometimes necessary, but most often not. Look at the interference by the Canadian government in the Air Canada negotiations. -A strange action from a government and ideology the is supposed to reduce the reduce and influence of government.
I don’t want to come off a some cheesy conspiracy theorist, but facts do seem to lead to conclusion #3.