Tube/credit: underground economics

What do the strike on the London Underground and the problems in the money markets have in common? Quite a lot, is the answer. Short-term loans and commuters both normally flow in vast quantities in quite regular patterns through these complex systems. But, after a reckless tube contractor went under, workers lost trust in management promises. And, after some reckless borrowers defaulted, lenders lost trust in the ability of counterparties to make good on their commitments. The two authoritie...