HOW WE ALL BECAME FINANCE EXPERTS
One would probably be right in assuming that one or two years ago most people’s economic knowledge might have hardly been sufficient to explain terms like inflation, base rate and recession.
But since credit started to crunch we have to cope with a flood of magic words like sub-prime mortgages, short selling, troubled assets and their relief, credit default swaps, toxic debts, just to name some of them. We are following evening shows about economic theory and the latest gossip on whether the recession might be L-, V-, U- or W-shaped.
Aren’t we starving for some (quantitative) easing from the flood of the purest of financial reality to leave it back to the well paid professionals even though we don’t understand the compensation they receive for dealing with such dry matters? Or do we actually enjoy the insight into a world we never thought about, but which seems to be essential to keep the economy ticking? Do we enjoy or disgust our new soberness? Or did we loose faith, because we feel no-one knows what he’s doing and it’s all a big hocus-pocus?
