[ExI] Financial Crisis - What really happened

[Mirco Romanato]

Il 19/02/2010 11.58, BillK ha scritto:
> Rolling Stone magazine has published Matt Taibbi's latest rant against
> the Wall Street takeover of the US economy. Even if you feel like
> nit-picking on some of the detail, the overall broad sweep explanation
> of what Wall Street has done is remarkably clear.  It explains why
> Main Street USA is broke, unemployed and homeless while Wall Street is
> paying unbelievable sums of money in bonuses as though the crash never
> happened.
>
> <http://www.rollingstone.com/politics/story/32255149/wall_streets_bailout_hustle>

The solution to this is to move from an economy where banks and 
governments can print paper money to a economy where the money is 
representative of something, like gold and silver (or whatever the 
market prefer).
I would see Ben Bernanke or any other fed. bankers to try to conjure 
gold and silver from thin air to bail out Goldman&Sachs, AIG, Freddy Mac 
and Fanny Mae and the others.

When they short-circuited the feedback of money lended and money saved, 
printing money and giving it to bankers to loan out and stimulate the 
economy, these geniuses never think of the consequences?
Austrians economics and economists are repeating the same arguments 
because doing this is simply to kick the can down the road and make it 
bigger.

Do you want a government that interfere with the economy?
Then don't complain about when they always screw the economy.
It is not that you was not warned before about what would happen.

Now, the governments are all trapped in a debt traps.
With low interest rates (now zero interest rate) they are forcing the 
economy to stagnate, as people have no reason to save and any reason to 
take debts.
And with higher interest rates the government would be unable to pay the 
interests on the debts without raising the taxes and killing the economy.
This can be solved only by defaulting, by inflating the debt away paying 
the debtors with the printed paper or taxing the people and cutting the 
welfare. Or all of them.

But, hey, the motives of the politicians were good; they wanted people 
to own their homes, to stimulate the economic growth, to have their cake 
and eat it. If you don't change the politicians, there is no way you 
will change their policies. No surprise you will have more of the same.

Mirco
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