Boe New Qe

[Lxxx]

you mean the people who irresponsibly borrowed too much against the stupid idea that cheap borrowing was long term sustainable ?

 

Imprison all us mortgaged people?

 

No, and I can scarcely believe you 2 think this was caused by such people / actions.

 

The bankers allowed their staff to lend to people that couldn't afford it, in fact they encouraged and rewarded it knowing full well that many would never be able to pay the loans back.

 

The ratings agencies then assigned good ratings to the newly developed debt structure packages, they are also to blame, as are the investment banks which sold them on.

 

There are many others to blame, hardly any have been prosecuted just vastly rewarded and still in office.

 

The whole financial system is rife with corruption and fraud, and it seems that it is policy not to interfere or prosecute ever, bar the odd rogue trader etc.

 

It's all one big, cosy, corrupt club. The rating agencies, the banks, the regulators, the governments......all scratching each others backs to keep the global ponzi scheme going for as long as possible before it collapses under the weight of it's own gluttony of debt and greed. We're due a major correction in the system as it cannot go on forever, debt is not exponential, it has to come to an end sooner rather later. The issue is that the banking parasites sitting at the top need the correction to happen in their favour, as there's not a chance in hell of them writing off $1 of debt and relinquishing all the hard work they have put in for centuries to get to this position, where we're all debt slaves.

[Ringwraith]

It's all one big, cosy, corrupt club. The rating agencies, the banks, the regulators, the governments......all scratching each others backs to keep the global ponzi scheme going for as long as possible before it collapses under the weight of it's own gluttony of debt and greed. We're due a major correction in the system as it cannot go on forever, debt is not exponential, it has to come to an end sooner rather later. The issue is that the banking parasites sitting at the top need the correction to happen in their favour, as there's not a chance in hell of them writing off $1 of debt and relinquishing all the hard work they have put in for centuries to get to this position, where we're all debt slaves.

 

“There is no means of avoiding the final collapse of a boom brought on by credit expansion. The question is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.” Ludwig von Mises Austrian economist

[Chinahand]

Just to counter, von Mises said that in 1949 - there have been a lot of credit bubbles burst since then.

 

Will this one be worse than the Asian financial crisis, the 70s stagflation, or the dot com burst - probably as the economies involved are larger and bound into more complex currency arrangements, but the fact is the majority of people will still get up and keep doing pretty much what they've always done for all the postings about the end of the world.

 

Look what Argentina went through over the millenium - rough as hell, but not the end of the world. Very few economists are seeing economic contraction of more than a few percent overall - Argentina shrank by nearly 20% in 4 years.

 

Touch wood it won't be as bad as that, but people when all is said and done just get on with it.

 

The Irish and Icelanders are - Greece is next, then Italy and then more than likely the UK.

 

Hard times certainly, but not the apocalypse!

[Lxxx]

Just to counter, von Mises said that in 1949 - there have been a lot of credit bubbles burst since then.

 

Will this one be worse than the Asian financial crisis, the 70s stagflation, or the dot com burst - probably as the economies involved are larger and bound into more complex currency arrangements, but the fact is the majority of people will still get up and keep doing pretty much what they've always done for all the postings about the end of the world.

 

Look what Argentina went through over the millenium - rough as hell, but not the end of the world. Very few economists are seeing economic contraction of more than a few percent overall - Argentina shrank by nearly 20% in 4 years.

 

Touch wood it won't be as bad as that, but people when all is said and done just get on with it.

 

The Irish and Icelanders are - Greece is next, then Italy and then more than likely the UK.

 

Hard times certainly, but not the apocalypse!

 

I get what you're saying to a certain extent, and also agree, but this is a global systemic failure that's on the horizon. If the domino effect starts then there's no-one to bail out the world economy. It's one thing for a country to go through hard times as they still have the rest of the world to trade with who have ready supplies of credit to kickstart the process (see Argentina). I don't subscribe to the apocolypse Mad-Max type scenario where people are eating the pet cat to survive, but I think we'll see the greatest wealth transfer in history as the (as yet) ignorant middle class will take the biggest hit. The poor will still be the poor and the rich will just get richer, as per normal operating procedure.