Friday, February 10, 2012

Where In Bankruptcy Law Do Bondholders Get Bailed Out?

When global banks make loans to government, businesses, or people they get rewarded for the good loans and should be punished for the bad loans. It's not capitalism on the way up and socialism on the way down. It's not this way for 99% of the people, so why should 1% of the world's elite expect this outcome? Especially when considering that this problem was created by the international money center banks and the country's central banks. The Hegelian dialectic of problem, reaction, and solution perfectly explains the situation we are in today. The big banks create lax lending standards through exotic mortgages and teaser rates to borrowers whose only needed qualification is the ability to fog a mirror. These loans create the bad situation we are in today and borrowers can't obviously repay these loans. The people's reaction is one of anger and now the solution is austerity. Even worse, is the solution of amputating both legs after they just sawed off two arms only three years earlier. Remind you that this proposed "solution" is coming from the same people who created the problem. Wow, this really is 1984 and George Orwell was right.

http://www.bloomberg.com/news/2012-02-09/greece-rebuffed-on-aid-package-as-austerity-vote-raises-risk-of-euro-exit.html

1 comment:

Cousin Leon said...

The only requirement is that they can "fog a mirror." I like that, good one.