Tuesday, May 19, 2009
We pick up the tab as they gear up for the next course...
The Renegade Economist: Cathartic Clean-out - The People Pay For Bankers Re-hab
The collapse of the Western financial sector was just what the doctor ordered, for the bankers. They had reached the point where they needed a cathartic clean-out. Their bloated excesses couldn’t go on, so a managed return to health was necessary to secure their long-term interests.
And so, cleverly manipulating the politicians, the banks are disposing of their victims – the suckers who took on mortgages they couldn’t afford – and shifting worthless assets on to a new batch of suckers (taxpayers). Prognosis: a new, lean banking machine ready to cash in on the glorious opportunities over the next business cycle.
Posted by neo-serf @ 04:44 PM (462 views) Add Comment
2 Comments
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1. sold 2 rent 1 said...
"a new, lean banking machine ready to cash in on the glorious opportunities over the next business cycle"
The business cycle will be an even shorter as the next commodity bubble should peak in spring 2010
2. james stephenson said...
Now the credit card companies are about to have their own clearout. If the Credit Card Bill is passed in the US, interest rates will rocket over the next nine months before it comes into force. People will default in their droves. The taxpayer will pick up the tab, and the whole cycle will be reset.
It is reported that the US government will drag the credit cards kicking and screaming under this new regulation. Yeah right.
It seems as if the details are ambiguous. For instance, people under 21 cannot get new credit cards (and therefore new deals to move their debt around with), unless they can show an ability to pay back. To begin with it will be hard to prove ability, but after things have reset, it will be easy.
Western Goverments don't do anything the Financiers don't want them to.
US (revolving) credit card debt:
2002 - $60 Billion (American Consumer Credit Counseling figures)
2009 - $900 Billion (Fed's G19 figures)
Long overdue for a reset. I think we are on the verge of seeing the next American bubble pop.