So, global finance again approaches the brink of severe crisis. And we all know what that means. Market participants have been conditioned to expect aggressive policy responses – and policymakers have been conditioned to dare not disappoint the markets. So the critical question becomes how close we have come to that perilous juncture where policymakers are unable to deliver. When does the scope of market and economic imbalances overwhelm policy tools? Or, more precisely and critically, when do the markets begin to lose faith in the efficacy of policy measures (not to mention, the actual policymakers)?
h/t george
Two words the world has conveniently forgotten over the last four years: moral and hazard.
The General nails it!
...“With Little to Lose, Many Greeks Shrug Off Dire Warnings.” The fear is that the “we have no fear. We have nothing to lose”.
The same corner we are all being painted into by varying degrees.
The super rich are fleeing, and the middle class are being fleeced, namely by Elitist corruption. This corruption is directed at both the financial and social systems of our nations. They loot us for profit and power, but they also enable an insider army of support from the entitlement classes.
Civil unrest is a goal for the elitists, it provides cover and opportunity. Freedom, Liberty along with a well armed population is their mortal enemy; this is why they are successfully destroying it in all western nations incrementally.
Unsustainable debt, government & corporate corruption, open borders, multiculturalism, race baiting politics, fear of elitist created terrorism and its subsequent national security requirements are not mistakes. Far from it, these are well orchestrated systematic measures of control and domination over nations.
They only have two choices at this point. Worldwide depression worse than the 30's or print money. They will print money.
Anarachists are busy in Italy. 20,000 law enforcement officers have been put in place to protect individuals and sensitive sites.
http://www.ajc.com/news/nation-world/italy-deploys-20-000-1439250.html?cxtype=rss_news_82109
Everything I have read on the economy and its various bubbles and crashes is caused primarily by government interference in the market place. As Sowell has written many times these elitists always think they know how the market works and how to CONTROL it.
Their interference always leads to huge corrections, recessions, depressions and to this current Global Financial Crisis rather than sharp, short ones when they don't interfere.
This GFC is the culmination of decades of socialist spending of our seed corn capital. As ET has posted we are in consumption mode and no longer create the private sector wealth required to grow the economy.
As we see in Europe this decades long conditioning of depending on government continues with left wing elections in an attempt to avoid making the needed tough cutbacks required. The Quebec "student" rebellion is just another reflection of this sense of entitlement and refusal to deal with reality.
dave >
"...many times these elitists always think they know how the market works and how to CONTROL it."
They do control it.
It depends on what level of elitists you are thinking of. The fact is that the top global elitists manipulate the markets incredibly well. When it "corrects" they make a ton of money.
Failing economies to a high level of accuracy are by design. When a countries economy fails as with Greece, the rich get much richer.
Greece's overextended debt not unlike Iceland's a few years ago, is “funny money” printed from thin air. The global banks/ financiers never had trillions of real money to lend in the first place. Now they are collecting on debts derived from phantom monies through interest, austerity, asset repossessions/ accruements and bailouts from other countries.
This is no accident; it is how the game is played. The people didn’t borrow the money, their corrupt governments did because they are part of the globalist scheme. The people are guilty of being lazy and allowing this corruption to take place for a few trinkets of entitlements.
They were stupid, and they were robbed.
The Fed has been artificially propping up the market with Operation Twist. My thinking is that it corrects sooner than the election and we may be seeing the start of it over the last few weeks.
http://www.cnbc.com/id/47259089
...until the pension cheques don't come in, not much will be done.
...until the pension cheques don't come in, not much will be done.
Think of it this way, if we can float this thing for another 10 years, most of the boomers have retired and died off and no one will forget about what caused all this in the first place.
whoops, mean no one will remember...
Greece may seem to be the big problem, at least acording to the main stream media, but as the article points out China is ready to begin deleveraging all its debt as well.
Once people realize the non existant Chinese middle class won't be pulling us out of the economic rut real panic will set in.
20 years ago there were endless articles written on how we should follow the Japanese economic model and Japan would be the next world super power. Their economy has been stagnent and flat since the tech bubble popped. China is next.
International conspiracy as an excuse appeals to many. IMHO democracy requires a level of responsibility that the majority willfully ignores. Governments on the whole are simply instruments. The minute the USA was taken off the gold standard and then deficit spending accepted by the people the outcome was inevitable.
It is not an argument of left vs right. Both sides have enough opportunists to send the system down the tubes. The values of thrift and saving, which built North America, have been abandoned.
I love watching another epic socialist fail.
ct - agreed. Don't ascribe to malice what can be explained by ignorance, stupidity, or self interest.