The next domino to fall

Here is a truly ominous piece on the terrible financial state of the United Kingdom. The British government engineered a bailout of banks in similar fashion to the American bailout. In both countries, the bailouts are failing rapidly as the real depth of insolvency both British and American banks face is becoming clearer--now after hundreds of billions of dollars have been thrown at them! Imagine what happened in Iceland happening in Britain. Then imagine that it happens in America. Even as Mr. Obama was taking the oath, bank stocks were being dumped on the market by investors desperate to get out before the next step in the dead-broke bank saga leads to out-and-out nationalization of the failed banks (like Citibank and Bank of America). All this Inauguration Day brave, optimistic talk is just whistling past the graveyard. The Crash of 2008 (and now 2009) isn't over yet by a long shot, and nobody in Mr. Obama's new administration (just like the British government) has a clue what to do about it.

Read it here