A scary financial story. It is about the excessive greed of the largest financial institutions in America and Europe, which has bounced back on them, leading to a potentially massive loss of net worth.
They created very dangerous toxic securities, virtual time bombs ready to explode. The joke is that some of the bombs are beginning to explode in their face.
We are talking of a minimum of US$100 billion and a maximum of US$ 500 billion, more likely to be around US$250 billion, which will have to be written off. Just think of the number of Ipods, Iphones and all the other gizmos you could buy with all that pile.
Gen Y-ers, those born between 1979 and 1998, so that the older ones are around 28, the highly creative digital generation, tech-savvy, their playground the internet, but a bit irresponsible as well.
One Newsweek writer described them as “Narcissists in Neverland”-working less, volunteering more, and financially very dependent on their parents.
What does the coming financial mess mean for Gen Y?
Only this. If your parents begin to find their securities fall more heavily in value than they expected, and are left short, they may fall short in continuing to support you.
Now, isn’t that scary!