Facebook Bubble Blues

The distraction of the Facebook bubble will not work this time. The crash in Spain is mainly in the brain. The game is over.



At this stage of the game no one will argue that governments are in debt, deeply in debt. But how much of that debt is proper to the government itself, and how much is owed to investment banks as a promise to back indefensible private financial obligations? How much is based on governments’ inability to fund the functions of the government and how much is bailout for gambling losses?



In the coming days, it will either be panic and despair, or Glass-Steagall.



As an individual one could always contribute to the panic, putting all investments into gold, withdrawing deposits to the supposed safety of a mattress--but that still assumes a very rosy picture of a global financial collapse. Or, you can call your congressman and tell him or her to call the Glass-Steagall bill, HR 1489 to a vote. Tell your Congressman, “Either implement Glass-Steagall and separate the good debt from the bad, or be prepared to go into deeper debt. Because it’s going to take a whole lot of money to pay private mercenaries to back up the National Guard when riots erupt in the streets of the United States.”



Mind you, that is not a threat to your representative in Washington, but a reasonable ultimatum.