It has long been my view that an informed, educated, thinking America would and should have a president like Dennis Kucinich. He's a man who not be out of place at the heart of politics in countries like Canada, Australia or New Zealand. But in the United States, where reality doesn't get much attention these days, Kucinich has been largely marginalised......much like reality itself, hence the crash "no one saw coming".
Kucinich makes his case against the US$700 bailout of the people who caused the crash in the first place.
Daily review 15/09/2025
6 hours ago
Steven,
ReplyDeleteAccording to the Senator in charge of the Senate's Financial Services Committee, his comittee was told by Henry Paulson, that they were hours away from the total breakdown of the U.S. financial system as they had an electronic run on the banks. This would have led to the collapse of the world's financial system and therefore the global economic system that depends upon it.
http://www.transitiontowns.org.nz/node/1370#comment-913
This leads me to believe that U.S. banks are now functionally insolvent as their capital has now fled, leaving them with little more than a mountain of toxic "assets" with no legitamate value.
If no underlying capital, they can't make loans, with no loans theres no liquidity and without liquidity there is no economic activity... You get the picture.
I have no srious issues with keeping the wold from caving in....but I don't think any bank should be getting taxpayer money without the relevant government acquiring equity in that bank. Otherwise, when a recovery does come, the people who DO own shares in the banks will reap the rewards generated by the tax money put in...and the taxpayers get.....what? The strategy becomes obvious.....bank sinking, shares bottoming....BUY BUY BUY....the bailout will be any day now.
ReplyDeleteI seriously thought about buying shares in CitiBank at $3.75 knowing they owuld be bailed out any day...and I'd double my money in a week or less.
The bailout cash will be sprayed around like confetti at a wedding and do about as much good.
Hey Steven,
ReplyDeleteI agree with you, but buying equity in the banks is that it still will insulate the shareholders of the banks from being accountable for their errors and will be doubly expensive as the government will have to buy equity AND inject capital into the banks.
I also think that a Depression is inevitable as TPTB's main concern appears to be that of mainting the inflated values of so-called assets, rather than stimulating the real economy that actually creates jobs and produces things of real value.
http://informationclearinghouse.info/article22026.htm