27-11-2008, 02:45 PM
David Guyatt Wrote:God almighty! The Fed has pledged an astonishing 50% of American GDP in the banking bail-out. This folks, will put you in hock for the rest of your lives, so it is only fair that you say a hearty thanks to bankers everywhere, and not one of them is facing any charges whatsoever...
Thanks to Reagan, Americans have come to expect magic from the government. His idiotic plan of increasing revenue by cutting taxes (George H.W. Bush even called it voodoo economics) is still with us. No wonder we had the derivative problems. That was the only way to deal with massive debt; just keep syndicating pooled IOU's and selling it off to foreign governments and U.S. pension funds in the hope people will keep working and paying the underlying debt.
The real culprits, IMO, are the stockbrokers and bankers who recognize the problem but aren't willing to give up the huge fees they make by issuing the packages of mortgage-backed securities and other derivatives. I think the problems really got out of hand with the repeal of Glass-Stegall which effectively merged depository banks with investment banks. It was that same combination which had brought on the crash of 1929, which Glass-Stegall was designed to fix.
"History records that the Money Changers have used every form of abuse, intrigue, deceit and violent means possible to maintain their control over governments by controlling money and its issuance." --James Madison