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View Diary: "79% of investors have no trust in the financial system." (154 comments)

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  •  Helping the Criminal Class in 2008 (8+ / 0-)

    was done at the expense of actually fixing what was wrong. Instead of it being fixed, we've bought a few years where the Criminals running the show have access to cash which they can turn into assets.

    Now, these Corrupt Organizations are larger than ever, their behavior is as corrupt and reckless as ever, a larger collapse is certain. So say almost all non-Wall Street Establishment economists.

    So instead of being 4 or 5 years on the road to a sound economy, which would have happened if we had force bankruptcy, reorganization, selloffs, and the reinstitution of meaningful restraints on banking, we're 4 or 5 years of doubling-down on something that is so corrupt it is a mathematical certainty that a much much bigger pile of shit is going to hit the fan.

    What we can expect as prelude to that guaranteed-to-happen event of The Additional, Bigger, Collapse, is the widespread loss of confidence in our financial system.

    So we've not only lost 4 or 5 years -- and remember government figures said we'd start to see a real recover in 10 years back in 2009 -- when we actually begin to recover (not just little upticks on graphs, but people with money to circulate) it'll be from even a deeper hole than in 2008.

    So, what, 2030 or so before we have a healthy Real Economy? Instead of being a year or three from it if the fuckers had had their asses in jail and their Bankrupt institutions treated like any other bankrupt company?

    Hope this helps to clarify.
     


    Markos! Not only are the Gates Not Crashed, they've fallen on us. Actual Representatives are what we urgently need, because we have almost none.

    by Jim P on Wed Jan 16, 2013 at 09:00:39 AM PST

    [ Parent ]

    •  But the point of the article is that the TBTF (0+ / 0-)

      banks are no longer our financial system.  No one is investing, no one is borrowing from them, everyone knows they are dead men walking.  If they go under, I don't think that will cause any more of a widespread loss of confidence in our financial system than is there already.

      My point is it's NOT a mathematical certainty that a much much bigger pile of shit is going to hit the fan.  There has been a gradual crumbling, and everyone knows the TBTF banks are just a deck of cards waiting to be blown over.  The real economy won't be impacted much.

      •  Zombie banks as Krugman pointed out (3+ / 0-)
        Recommended by:
        cordgrass, 3goldens, lotlizard
      •  Wow, that's optimistic (1+ / 0-)
        Recommended by:
        3goldens
        ...everyone knows the TBTF banks are just a deck of cards waiting to be blown over.
        If that were true, then why would so many bajillion people still have accounts at BofA?

        Yes, yes, FDIC, but if they really understood how unstable the bank was, why would they have an account with it to begin with? If nothing else, if it went under, it would be a huge hassle for them.

      •  All the investors now, which includes (0+ / 0-)

        retirement fund investors, municipalities, states, other banks, TPTF employees... this will be tens of millions of people hurt, as the top four banks are the bulk of the economy.

        Yes, we're faking they're alive so far; but when the pretense can't be supported then all these people and more will lose what they have now. It's going to hurt, and hurt more than 2008.


        Markos! Not only are the Gates Not Crashed, they've fallen on us. Actual Representatives are what we urgently need, because we have almost none.

        by Jim P on Wed Jan 16, 2013 at 05:52:16 PM PST

        [ Parent ]

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