Caveat creditor and a human rocket

In my blog of July 3 (The news you may have missed, debt and a walk on Mars) I spoke to you about the BIS (Bank of International Settlements which is like the central bank of central banks). In their annual report they said that all the extra money created through quantitative easing (by the US, UK and Japan), and the long term refinancing operations (by the ECB) has not solved anything, but just kicked the can further down the road. And that the can got a whole lot bigger (global debt has risen with 23000 billion euro).

They have just released another report titled 'Caveat Creditor'. Says it all really. Their claim this time is simple: if someone is overlending that is not only his mistake but also the responsibility of his creditor who granted all those loans. In this particular case: European banks gave too many loans to Southern states in "expectations of a bail-out". Well they weren't wrong on their expectations weren't they... It was not the first time banks fell into that trap either: "This failure of lenders is not a new phenomenon. A key lesson from a succession of emerging market crises in the 1980s and 1990s was that lenders –
particularly banks in the advanced economies – had been reckless." That's pretty straightforward language! The BIS concludes that "symmetry in adjustment between creditors and debtors" is necessary to get us out of the crisis. In common speak: be less gready - everyone. That is not what is happening today however with surplus states continuing giving loans to overdebted countries. The BIS finds this a "dangerous" structure and with capital flow reversals that can occur at any time it could have "devastating consequences". Uh-oh...
You can read the full report here: http://www.bis.org/publ/work419.pdf

I give in, I can't resist the pictures and feedback from Oshkosh any longer, it is too tempting.
I was right last week, they didn't have an Avro Shackleton, what they did have was a B17 formation flying with the Jetman. Yep indeed. Watch this video: https://www.youtube.com/watch?v=qUUYuvheS3M. Now that's what I call flying, if anyone has a spare set of wings and jet engines in his shed, let me know. The pictures are from the Breitling website and the B-17 Champaign Lady facebook page (https://www.facebook.com/pages/B-17-Champaign-Lady/247176712036792).

And for those of you for whom it is not enough rocket-like, have a look at this video: a thundering video shot from the Space Shuttle boosters during launch. Watch it until the end and put your speakers on! http://www.youtube.com/watch?v=2aCOyOvOw5c#at=490