I have been watching closely the global breakdown of the banks all around the world. I admit, the first time I heard about it I was a bit scared. I was thinking to myself:
Ok, GREAT! This is exactly what we need, we had been struggling for three years with political problems, when the big investors around the word were enjoying the outrages prices of fuel and everything and we were doing what? um, killing each other, frightening each other. And now that we having finally got our act together and elected a president, difficultly found a way to form a government... NOW we are having this financial crisis, now that we are finally lifting ourselves above our shit we have a financial break down
Oddly enough the financial did not affect the Lebanese economy! Nothing! I thought it takes some time to hit the region but then again Dubai and other Emirates broke down and licensed their employees (I know this because a good percentage of my friends work in various gulf countries and a big percentage of them got licensed for no reason) and Lebanon did even feel the international crisis.
Only then did I realize that we actually have a powerful banking system. Everyone used to praise our banking system but I refused to believe it was THAT great, no one is THAT great after all. But I stand corrected.
You see, and according to what I have read here and there, that what this guy actually did was:
1- predict this would happen, I guess it doesn't exactly take a genius to predict that a system of "loans on loans and loans to cover the loans that were taken on loans and loans taken to create credit in order to provide loans to make profit and therefore create something out of nothing" is not really difficult to predict, really any airhead could have predicted this would happen.
2- Do something about it! I wonder why no one ever did anything about it. I guess it is difficult to impose a less profitable system on banks. Lebanon has a very strong financial system but it had its horrible moments, like in 1982 when our currency went bankrupt and people lost all their money and savings (my dad was one of them). Ever since the central bank has unimaginable authority. And apparently it pays off.
But then again, there is only one thing I will regret about not having a Recession.