So yeah, it turns out that if you let people buy things with imaginary money that they have no hope of paying back and then those things turn out to only be worth their actual value, rather than their imaginary, crazy-person value, your entire economy turns to crap. Who knew?
One side effect of this is that banks are suddenly forced to cut back on things like mortgages to unemployed people and employees — who are now unable to secure mortgages from their former employers. Bummer.
Case in point: Scarlett McCutcheon, former Bear Stearns employee, featured in this BBC News piece:
“I was very surprised when I was called into the head of the hedge fund group’s office and told that due to restructuring reasons, I was being let go.”
“Wow,” reporter Karen Nye responds.
On voiceover, Nye continues: “For one of the financial industry’s worker bees, living in a big city without an income is NOT easy.”
McCutcheon agrees: “You know, I’m not one of these… uh… storied Wall Street workers who makes millions of dollars in bonuses. You know, I had to pinch my pennies and really tighten my belt.”
Wow, that’s tough. Living in Vancouver without an income is tough enough, let alone a city like New York. Hey, I wonder what job she lost. The video didn’t mention that part. Let’s take a look at her LinkedIn profile:
Greater New York City Area
Past: Vice President at Bear Stearns
Aw, that’s a shame. It always sucks when upper management in the very department that cripples a multi-billion-dollar banking corporation gets let go because they fucked up so badly that it triggers a global economic crisis. How unfair.