Delusions of Grandeur

Why Nauru is like Bear Stearns.

Nauruans were high on the hog on a mix of Bird Poo and Coral until they dug it all up and spent the money on frivolous things. And then along came Kevin Rudd and shut down their last cash cow, the immmigration detention centre with about two refugees and two hundred employees. Cash cow to beat all cash cows.

Nauruans realise that the party is well and truly over.

Now comes the hangover and then, with luck, some sort of recovery. But it will take squeaky clean governance, hard work and rock-solid investments for Pleasant Island to once again live up to its name.

It may not yet be paradise lost, but it is most definitely paradise postponed.

And delusional Bear Stearns employees, who believed that everything would always go up in value lost that bet when their customers smelled the roses.

The deal values Bear Stearns, which has been at the centre of the US mortgage debt crisis, at just $236m (£116m).

Its shares have lost 98% of their value since their high of $158 in April one year ago, when the bank was worth $18bn.

Sometimes life is just not as rosy as we would like to think it should be.