I don’t know who first coined the phrase “voodoo banking,” but it certainly seems appropriate in light of the 2007-? financial crisis. If you are having trouble understanding the vast amounts of money being poured into the banking system by the world’s governments – you are not alone, and I suspect this is intentional. The human mind can only grasp certain figures, and once the idea of “trillions,” of dollars, pounds, or bottle tops is being used, it is impossible to comprehend how much this is. How much is a trillion? I cannot visualize it – and I would think most people just say “a lot,” in their head. But there is “a lot,” and there is “a lot.”
I have actually lost count how much is being created, quantatively eased, printed, committed to, government guaranteed, government stimulated, rescued or whatever other euphemism is being used to lull the stock market into a false sense of security, but I refuse to believe banks that were on their last legs just a few months ago are now magically healthy. Solvent even.
Which is presumably how the term “Voodoo banking,” came about. What we have in effect is banks that are “walking dead,” or “zombies.” And we all know what happens to zombies. At least in the movies. If it is not making sense to you that the banking system that failed by being over borrowed is also being propped up by borrowing more – fear not. There is a good reason that it makes no sense to you. This is simply because it makes no sense.
Actually that is not completely true – it makes no sense of you are on a certain side of the fence – which is only about 99.9% of the population, so we should be fine. In the unlikely event that the recent borrowing bubble is re-inflated by the voodoo government witch doctors, the only possible outcome I can see is a bubble the size of which I cannot grasp.
The simple fact is – governments the world over are panicking. Mr. Obama promised “change” to get himself elected, and I fail to see how continuing the policy of pouring limitless amounts of new money into a dead banking system is in any way a “change.”
The British government has got so ruffled and they are so desperate to distract away from the real issues that we are actually being allowed to be outraged at the amount of “expenses,” Members of Parliament have been stealing from the taxpayer for the last million years. You know things are bad when politicians start telling the truth.