Tuesday, October 04, 2011

"Money is A Matter of Belief, Even Faith"

The Financial Crisis: The loss of trust in the other as person.

Linda Chavez: “‘Money is a matter of belief, even faith: belief in the person issuing the money he uses or the institution that honors his checks or transfers. Money is... trust inscribed.’ And once trust breaks down, the system itself collapses. What is worrisome in today’s troubled economy is that trust seems to be dissolving before our eyes. Why have banks stopped lending? Why are people pulling their money out of the stock market, driving down the Dow and NASDAQ? Why are people afraid to buy houses? It all boils down to trust. Banks don’t trust that debtors – companies, individuals, even other banks – will pay back the money they lend, so they stop lending...”

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