The big banks (from the IMF on down) papered over the debt crisis starting way back in 2005 - the S finally hit the fan in 2008, and they’re STILL papering over it.
In other words the big boys aren’t just in the frying pan, they are playing with the bonfire...
Maybe this explains all the recent ‘suicides’ in the banking industry?
See list at this thread:
http://www.freerepublic.com/focus/f-news/3148351/posts
If there were any certainty (or near certainty) in the referenced (not peer reviewed) analysis, then the market would have already reacted. Markets anticipate, and market participants are loathe to lose money.
Eventually the music stops and demand goes to zero. Default occurs in all sectors.
Only those with stores of cash and no debt survive,
Which explains why corporations are hoarding cash and the velocity of money is jack.
What do you think all the bullets are for? It's to keep order when the shit storm hits. Storm clouds have been on the horizon for some time. We are feeling sprinkles now and can see down pouring clouds in the not too far distance.
“the fundamental problem we are still facing is excessive debt. Not excessive public debt, mind you, but excessive debt in the private and public sectors. To resolve that, you need restructurings and write-offs. That’s government policy, not central bank policy. Central banks can’t rescue insolvent institutions. All around the western world, and I include Japan, governments have resolutely failed to see that they bear the responsibility to deal with the underlying problems.”
So what happens to the college debt? Will all those college kids be forced into labor camps?
No system is perfect. Democracy and capitalism is no different. Here is the scoop. All economies go in cycles. Boom and bust. Politicians do not want to be blamed in busts and dominant businesses do not want to take the losses and lose their place in the financial chain. Both got together with a simple scheme, politicians vote to borrow and spend, and use the money to bailout the corporations. If recovery does not occur quickly have the central banks manipulate the money supply, interest rates and if necessary have the financial institutions maniplate and rig the market till recovery cycle manifests. Problem is gov and big business rigging and manipulating the markets has grossly distorted the prices of assets. No one dares to buy or invest, and gov/central bank/bailed out corporations are in a world of hurt.
