“Make no mistake about it, just as Lehman Brothers was set up to take the fall for triggering the 2008 collapse, China is being groomed as the new scapegoat for the coming crisis. But China’s economic slump is only a symptom, not the disease…
The reality is that the repeal of Glass-Steagall ushered in the greatest wealth transfer scheme in the history of America, allowing six mega banks in America to control the vast majority of insured deposits, use those taxpayer-backed deposits to gamble for the house, loot the bank from the inside by paying billions of dollars to select employees and customers and then hand the gambling tab to the taxpayer when the casino burns down. This model is a staggering headwind on both U.S. and global growth because it has created the greatest wealth and income inequality since the Great Depression.”
Pam and Russ Martens, The Real Reason Global Stocks Are Flashing Red this Morning
Reality always sucks for the political class. The promise to always fix the problem is the distraction used to continue the charade. The laws of physics say that what goes up must come down except for the oligarchy of Washington DC.
lets not forget community reinvestment, jamie gerlatis, and changing stocks into decimals verses eights, and mark to market. clinton/rubin in the middle. they should be celebrating in davos, isn’t this the goal of soros and the rest.
my favorite phase, we will fix it so it never happens again. AIG was set up and stupid as well, goldman sacs never should have survived, paulsen should have been put in jail, like bush stated, for free market to be saved we must save outright criminals. fanny mae and freddie mac were obvious from the start, barney frank and maxine, all is well, no penalty for out right fraud and lies, as i watched the ridiculous hearings. a little like guam capsizing, still waiting. funny how politicians and wall street continues to trip on they own lies and deceit. i would flunk econ 101 yet these people think i am as stupid as a bernie burner. if you wish to destroy something fast, burn it from both ends.
Everything has a life cycle, including economic systems.
When this one comes to its natural end -it is doing that now- let the rich bury the rich, the rest of us will have work to do building a new one.
“The Real Reason Global Stocks Are Flashing Red this Morning” is that we are trashing the biosphere that keeps us alive, while 250k or so new mouths-to-feed are added every day (births minus deaths).
By and large, the world has run out of “profitable” enterprises. Those with any stability whatsoever have a gov-sanctioned monopoly, or survive via accounting fraud.