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1   Onvacation   ignore (6)   2018 Jul 27, 6:14pm     ↓ dislike (0)   quote   flag      

From the article:
"What happens when the whole chain blows up and the foundation of debt is impaired? Since the whole system is based on the debt and the income streams devoted to servicing it, the entire edifice collapses when the debt is impaired--debtors default and the system clogs with bad debt, i.e. uncollectable debt.

In a transparent Capitalist system, the debt would be written down and all the insolvent borrowers, lenders and counterparties would be wiped out. But the political corruption that enabled modern finance to poison the American economy and culture has stopped that cleansing from occurring.

Such a systemic writedown of bad debt in a system with only razor-thin capital to support a mighty edifice of leverage and debt would wipe out Wall Street and the banks and reveal the skimming operation of modern finance as an impossible perpetual motion machine rigged to enrich a thin crust of citizenry at the expense of the rest. And since they skim enough money to buy political protection, Capitalism has been strangled and tossed in a shallow grave lest it disrupt the skimming and the political corruption that keeps the machine running."

I remember when the too big to fail banks said "bail us out or the world as we know it will end". A decade later and the stock market is at an all time high, corporations are buying their own stock rather than investing in the future, real estate is more unaffordable, the gap between the haves and have nots is increasing, and the too big to fail banks are bigger than ever.

How long can this debt based ponzi scheme go on?
2   MisterLefty   ignore (0)   2018 Jul 27, 6:20pm     ↓ dislike (0)   quote   flag      

Obama said the banks committed no crimes.
3   Tenpoundbass   ignore (16)   2018 Jul 27, 6:24pm     ↓ dislike (0)   quote   flag      

Yes they are right but they are about 10 years to late to admit it. When it should have been allowed to collapse then.
Obama controlled the recovery so the right Billions got in the right hands, and that money greased the right wheels.
That Jive Ass Mother Fucker didn't do anyone any damn favors!

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