What goes around comes back around

I can't help but feel it was about bloody time their methods came back to bite them in the arse.

"World stock market falls

In the past five years, extraordinarily low interest rates in the US have led banks and other financial institutions to lend substantial sums of money to people with poor or no credit histories.
The idea was that, even if they eventually couldn't pay, the banks could recoup any losses by repossessing and reselling the houses - and in any case, house price rises would cushion the blow.

But now as interest rates have risen, so have repossessions. The US housing market has collapsed, and the banks find themselves saddled with a lot of bad debts."

The sad upturn of all this however, is that larger numbers of families that were never well off in the first place, find themselves even closer to ruin now...

From a pure scientific perspective, it's fascinating to watch the dynamics of the economic system at work. For now that the market's on the downward slope, oil prices have started to lower again too. It's a brilliant example of how a sufficiently interconnected system manages to balance itself out.