The credit crisis of 2008-2009 has shaken and rocked this nation to the very core.
By Daniel at 13 December, 2009, 7:55 pm
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Small defects quickly snowballed into big avalanches. The housing bubble that many “home flippers” so handily enjoyed proved unsustainable; the massive trade imbalances continually run were unsustainable, excessive leverage and speculative plays subsequently made balance sheets more fragile. Consumer confidence quickly hit a brick wall, and in an instant, our way of life was forever altered.
At the very epicenter of the world’s most destructive financial crisis since the Great Depression stood the “too big to fail banks.” Our benevolent bureaucrats quickly sprang into action bailing out banks, auto companies, and insurance giants, and printed money as fast as the presses would allow, all in a desperate effort to save the economy. Is this really the best way forward? Simply go on with our daily lives as if nothing happened. Shouldn’t we take a good hard look at the puppet masters who really pull all the strings? The devil is very much in the details…
In a world that caters to a tiny group of elite bankers, government clients, large multinational corporations, and rich individuals the sense of fairness has broken down. Middle class America continues to shrink at an alarming pace. Millions are joining the ranks of the poor. With tens of millions of small investors flocking to Wall Street in search of their “piece of the pie,” they have unknowingly become the most lucrative source of new business for the empire of high finance. The banking empire headed by Goldman Sachs, and JP Morgan among others, has quickly shifted their strategy to embrace the wave of novice investors trading from their Scottrade, Sharebuilder accounts.
The crazy, go-for-broke ambition instilled in so many of the nations best and brightest opened the floodgates to new found riches. A sense of willful ignorance backed by caviler attitudes propelled derivatives “innovation” to new heights sowing the seeds for this catastrophe. Mainly used as a tool to reduce risk banks and other large company quickly traded swap after swap without going through and exchange. Deals were brokered privately between banks and clients. The switch to limited liability was a conscious attempt to encourage risk capital into the banking system to help finance growth. In essence, this meant trading off financial risk against future productivity.
The core problem in the US government is that it is COMPLETELY CONTROLLED BY THE BANKING AND MIC INTERESTS. The Rolling Stone article exposed this very explicitly this weekend for anyone who had any doubts and showed how the banking interests pushed out even the other economists in Obama’s campaign as early as November 5th, 2008, the day after the election and then installed themselves and moved to give almost $300 billion to Citi. The culprits are a small gang of people involving the Rubins (father and son), Lawrence Summers, Timothy Geithner, Jamie Dimon, Lloyd Blankfein, and a relatively small list of others who CONTROL THE US GOVERNMENT RIGHT FROM INSIDE THE WHITE HOUSE.
As the America people eagerly await that proverbial white knight in shining armor to ride up and save the day, perhaps a rare hero will emerge from a vilified industry? The empire must be broken and power dispensed back into the hands of those who rightly own it: We the people. The Glass-Steagall Act of 1933 must be reinstated. It is time once again to build the wall, separate commercial banking and investment banking. Reversing direction will not be easy. It is likely to require financial sector reform effort every bit as radical as reforms that followed the Great Depression. The corruption must be stopped. The benevolent bureaucrats must go. A sense of long-term relationships and loyalty must be brought back.
- ImpendingDoom
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