Never forget exactly who is being rescued by Central Bank/Political bailouts! Here’s a hint: It ain’t you or me:
“…it is important to remember that the attempt to rescue distressed European debt by imposing heavy austerity on European people is largely driven by the desire to rescue bank bondholders from losses. Had banks not taken on spectacular amounts of leverage (encouraged by a misguided regulatory environment that required zero capital to be held against sovereign debt), European budget imbalances would have bit far sooner, and would have provoked corrective action years ago.
The global economy has not been well-served by the financial companies that leaders are trying so desperately to protect. Our vote is for receivership and restructuring so that losses can be taken by those who willingly accepted the risk of loss, and the legacy of bad investments and poor capital allocation doesn’t have to be converted into a future of suppressed economic growth.” (emphasis added)
John Hussman, January 3, 2012 “The Right Kind of Hope”
Let’s hear it for “receivership and restructuring” . . .
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