posted on Feb, 12 2009 @ 06:39 PM
When I think about the fact that this article comes from the Wall Street Journal, I can only shake my head in wonder at how far we have come (or
fallen). One or two years ago, one would never see a headline like that outside of a "tinfoil hat" alternative news website. Today it is featured in
the world's flagship financial newspaper. This in itself is a good development because it shows that people on a broad level are finally starting to
confront the magnitude of what is unfolding, after years (decades?) of denial.
One of the things that made the old system supposedly so safe was the "universalization of risk." Risk was chopped up, sliced and diced, and minced
finely until, almost invisible like dust, it could be spread everywhere, throughout the whole system. Because risk was everywhere, it seemed like it
was nowhere. But now we are seeing the ugly flip side to that equation: when you spread risk throughout the whole system, disaster will impact the
whole system when it finally comes, rather than one or two big institutions or sectors. This is what we are seeing today.