A Bill That Can Never Be Paid

They were gambling on the riskiest of "investments", building worthless portfolios whose values just kept increasing; and lured by the awesome power of greed they forgot the most basic rules of the market: [1] Don't gamble with money you can't afford to lose, and [2] It ain't worth nothin' if you can't sell it.

So they put everything they had into building imaginary wealth, and when the wages of their sin came due, they handed the bill to you. It's a bill that can never be paid.

You can read the rest here or comment below.


McJ's picture

What a financial collapse looks like

Argentina's Economic Collapse (FULL VERSION) - 59 min - Jul 19, 2008
Documentary on the events that led to the economic collapse of Argentina in 2001 which wiped out the middle class and raised the level of poverty to 57.5%. Central to the collapse was the implementation of neo-liberal policies which enabled the swindle of billions of dollars by foreign banks and corporations. Many of Argentina's assets and resources were shamefully plundered. Its financial system was even used for money laundering by Citibank, Credit Suisse, and JP Morgan. The net result was massive wealth transfers and the impoverishment of society which culminated in many deaths due to oppression and malnutrition.
There are a lot of similarities here to what is going on right now. This was one country, imagine this on a global scale...very frightening.

"I set it down,
That one may smile, and smile, and be a villain..." -- Shakespeare, Hamlet, I, v

where does it come from?

In last night's news we heard about the money Bush has pledged to banks to guarantee loans, a la Britain's similar plan, and I turned to my husband and asked hypothetically, "where is that money coming from?" He said, "it doesn't exist." But it's interesting how all these truckloads of money are appearing around the world, when there wasn't any before, to take care of poverty, education, infrastructures, etc. (like Chris Floyd said yesterday).

and the banks dictate the terms

read this

Banks dictate conditions of US financial bailout

McJ's picture

From George Ure

From George Ure today:
Later this morning, the administration will unveil its plan to semi-nationalize the banks with $250-billion which will be sucked out of your wallet through various taxes.
But wait! Is this making sense? I mean, why would the Treasury Secretary and Commander in Printing (Ben Bernanke) be all fired up about spending $125 billion on the nation's 9 largest banks?
Consider that one of the recipients of $25-billion will be JP Morgan Chase & Co. Here's an outfit, which [when] I look at their earnings still looks to turn a tidy profit for the year.
So why the money?
The theory that we're asked to believe is that this will somehow 'encourage banks to resume lending' and this will magically get the economy back on track. Lacking the high-dollar education of some of the nation's leaders, it seems common-sensical that the Banksters have got quite a racket going: Simply stop lending long enough to turn on the 'free money spigot' and generously offer to resume lending when enough ransom has been paid.
Keeping track of how much money has been extorted from regular humans around the planet in this attack of the financial highwaymen is a little hard to sort out. Close as I can tell, here in the U.S. the tab has been over $1.5-trillion dollars - a bit more than 10% of everything made in America this year. Over on the other side of the pond, European governments have promised to put $2.3 trillion on the line.
All that I'm hearing so far is "We gotta save the bankers!" To which I respectfully submit that "We gotta save America and America is not just fat-cat bankers (although they do hold more sway than regular humans as evidenced by the ease with which they were able to write sufficiently large checks to overrule the Will of the People in the Bailout Bill)."
The fact of the matter is that one global economy has failed already. In Iceland, "...shoppers slurge as currency woes reduce food imports." That's a situation that I expect will come to America when the bankruptcy of the current "Save the Bankers!" mania comes home to roost over the coming few weeks.
Bailout! Bailout! Bailout! What happened to telling it like it is? It's not a rescue! It's a frigging theory from guys who don't wash their own cars or mow their own yards...If you were going to the Big Box Store of Economics, why would you believe folks who can't even figure out what 'winning a war' is?
More to the point: Where's our money back guarantee if this printing press 'spray and pray' doesn't work out?

"I set it down,
That one may smile, and smile, and be a villain..." -- Shakespeare, Hamlet, I, v

Post new comment

The content of this field is kept private and will not be shown publicly.
By submitting this form, you accept the Mollom privacy policy.