How long could the folks over in accounting hold back the tides of default and bankruptcy? How many millions of fingers would you have to find to plug all the holes in that dike? For many years — probably as many as Kate Bolduan has been scowling — the damage has accrued as the industrial nations grappled with the conundrums of wealth production vis-à-vis the decline of primary energy resources, and they are fresh out of tricks. All that legerdemain with the suppression of interest rates and self-dealing in bonds, gaming the equity markets with surrogate shadow-bidders, playing hide-the-salami in structured investment vehicles and special purpose entities, and kiss-the-lizard with collateralized debt obligations, leveraged ETFs, credit default swaps, interest rate swaps, commodity swaps, currency swaps, binary options, subprime this-and-that, National League RBI futures, gentlemen’s bets and side-bets on bets, and plain old thieving bought the advanced nations a few decades of breathing room before the whole reeking scaffold of folly groaned and blew.
