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Posted by Tony Ryburn on November 17, 2008
Have you noticed how America always has to be centre front on the world stage? The Iraq war did the job nicely for quite a while and just when even diehard Americans started tiring of that, they conjured up a financial crisis that started in their banking system and then reverberated throughout their entire economy before engulfing the rest of the world.
Things got seriously out of hand as we are all now painfully aware and America turned to its economic policy advisers to come up with a solution. Unfortunately what they came up with left a lot to be desired.
Their solution was to grab $US700 billion of tax payers’ money and buy bad bank loans. This would have been grossly unfair to taxpayers who were basically being asked to pay megabucks for a load of worthless junk with no compensating upside.
Fortunately the European Union and Britain were alert to this inequity and came up with a much more reasonable, if blindingly obvious solution. If tax payers’ money had to be used to bail banks out it should be used to purchase equity in the bank. That way, long-suffering taxpayers would get a commensurate share of the good stuff as well.
Eventually, the wisdom of this proposal dawned on the Americans and they announced that they would follow the European and British lead. And what happened when they finally got it right? A few billion (or was it trillion?) was promptly wiped off the American share markets! So it’s not just the banks and economic policy advisors in America who seem to have lost the plot.
And the point is? Well, the Americans led us into this mess but, based on their performance to date, we would be foolish to expect them to lead us out.
One Comment
Comment by Joe Perossa at 2:43 am on Dec 16, 2008
My Dear Friends
Are we totally stupid and not undertsnad the real issues behind the whole concept of the financial collapse.We must not ignore that the US bankers are not that stupid,unwise or completely dumb . They would give the borrowers money -for so called sub prime mortgages and knowing in full that the mortgagee ,impossibly cannot fulfill its obligations-and pay the bloody money back.
Who is fooling who ?The banks or the mortgagee. They cant pay ,and they willing know that they can just hand the keys back to the bank when things get rough.
We are talking about the US banks ,not some third world country bankrupt cornerstore.. My theory is that just like everything else that the US does , its always calculated and created a means to an end.
A result is what they look for , and the US got it. A world financial collapse. Is this not in their power to do ?. Is it true that, they didnt have to create a sub prime world if they didnt want to.?They chose to.WHY?
The stock markets investors make money on the up and they make money on the way down.Who is making all the money when its going short. Not Australians because the Governmment stopped short selling. Did the US stop the short selling.CFDs and other ways in going short had created some fantastic money for those people gamblers, and ordinary mums and dads money,superanuations and anyone who chose to invest for the long term lost their underwear. How much long term does anyone think a stock market can go.Is the sky the limit.?
I hope the penny has dropped , of course – its got to come down sometime, as it will come up sometime, the trouble is its always the little person who will get hurt in this planned event .
Can anyone tell me , are the US bankers that stupid? Can I be wrong.? Is there anybody out there that believes in my theory.?
JOE