Extreme Money

Prologue: Hubris

Hubris – in Classical Greek tragedy, insolent defiance caused by excessive pride towards the Gods.

Sub-prime dialects

‘Vhat does a poor American defaulting in Looneyville, West Virginia, have to do with me?’ Behind his high-tech, titanium composite glasses with an unlikely red and white polka dot design, Doktor Flick’s anxious tone betrays uncharacteristic insecurity. Looneyville, I learnt, was a real town. In 2007 US citizens were falling behind in payments on their mortgages in record numbers in Gravity Iowa, Mars Pennsylvania, Paris Texas, Venus Texas, Earth Texas and Saturn Texas.

Since 2000, housing prices in the USA had increased dramatically, driven by a combination of low interest rates, a strong and growing economy ...