Walker Proof Digital Album Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
The smartest person I know about economic matters was saying we should let the banks fail and investigate for wrong doing back in '08. It was one of the few times I disagreed with him but now it's apparent he was right. I knew there was wrong doing but didn't suspect its magnitude at the time. I thought that the economy would tank if the banks went down.
At least the crooks wouldn't still be getting bonuses and government protecting them from higher taxes today.
With 300,000 people and a country 199 miles square, it was far easier to do what they did than with a much larger, networked nation like the USA, UK, Germany, etc.
Iceland is only 10% larger than Maine, but with 25% of Maine's population. We could probably have done the same thing with Maine. But doing that on a scale of all 50 states would have been a load. How many otc derivatives was Maine tied into? I bet it wasn't much. Basically, even Sinclair agrees that telling the bankers to take a high in Sept 2008 would have resulted in a catastrophic depression....probably world wide. Iceland was a tiny pimple on the 800 lb gorilla. It's good that he got that removed.
While I applaud Iceland's actions, doing that in nations with huge financial centers would have been a true shtf event. It would have been lights out...literally for months, maybe years. I could compare the pain to amputating all 4 limbs to "save" the patient. We're still going to end up limbless, but it will be one finger, one hand, at a time. We'll get used to it.
A shining example of how it should be done.....and truly exposes the corruption of
government...Cheers, RickO
I think exactly one guy went to prison during our crisis
mark
Walker Proof Digital Album Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
Bankruptcy law worked just fine until the bankers gained control. It's all about control. There's no longer any consequences if you're a big banker tied in with the Fed (if there ever really was).
You don't have to worry about bad loans or malfeasance. You get free money if you fail to keep up on your reserves. You get free money every time you create a loan, bad or good. Buy your very own senator! Keep the debt system going. A better skimming operation has never been conceived.
Q: Are You Printing Money? Bernanke: Not Literally
When Iceland’s three major banks collapsed, it resulted in defaults totaling $114 billion in a country with a gross domestic product (GDP) of only $19 billion. In October, 2008 the parliament passed emergency legislation to take over the domestic operations of the major banks and established new banks to handle them. They did not, however, take over any of the foreign assets or obligations. Those stayed with the original banks, right into bankruptcy
The same ratio applied to US GDP would have resulted in $100 TRILL in defaults. That's probably in the ball park for what really needed to be accomplished to clean the slate. As it was, credit default swaps were reduced/defaulted/netted down by approx $20-$30 TRILL and MBS about $4-$7 TRILL, give or take.
RR's analogy on the size of Maine and population was good . The biggest difference of course is that they have their own currency. It often yieldied over 10% and was used as a carry trade instrument. People got wiped out in some trades.
mark
Walker Proof Digital Album Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
derryb
Posts: 36,217 ✭✭✭✭✭
Comments
Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
fail and investigate for wrong doing back in '08. It was one of the few times I disagreed with
him but now it's apparent he was right. I knew there was wrong doing but didn't suspect
its magnitude at the time. I thought that the economy would tank if the banks went down.
At least the crooks wouldn't still be getting bonuses and government protecting them from
higher taxes today.
Iceland is only 10% larger than Maine, but with 25% of Maine's population. We could probably have done the same thing with Maine. But doing that on a scale of all
50 states would have been a load. How many otc derivatives was Maine tied into? I bet it wasn't much. Basically, even Sinclair agrees that telling the bankers to take
a high in Sept 2008 would have resulted in a catastrophic depression....probably world wide. Iceland was a tiny pimple on the 800 lb gorilla. It's good that he got that removed.
While I applaud Iceland's actions, doing that in nations with huge financial centers would have been a true shtf event. It would have been lights out...literally for months, maybe
years. I could compare the pain to amputating all 4 limbs to "save" the patient. We're still going to end up limbless, but it will be one finger, one hand, at a time. We'll get used
to it.
Iceland Sentences 26 Corrupt Bankers To 74 Years In Prison
eight years later and they are still hunting them down.
Give Me Liberty or Give Me Debt
government...Cheers, RickO
A shining example of how it should be done.....and truly exposes the corruption of
government...Cheers, RickO
I think exactly one guy went to prison during our crisis
mark
Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
You don't have to worry about bad loans or malfeasance. You get free money if you fail to keep up on your reserves. You get free money every time you create a loan, bad or good. Buy your very own senator! Keep the debt system going. A better skimming operation has never been conceived.
I knew it would happen.
"“Those who sacrifice liberty for security/safety deserve neither.“(Benjamin Franklin)
"I only golf on days that end in 'Y'" (DE59)
A shining example of how it should be done.....and truly exposes the corruption of
government...Cheers, RickO
I think exactly one guy went to prison during our crisis
mark
Probably because he refused to share.
Give Me Liberty or Give Me Debt
The same ratio applied to US GDP would have resulted in $100 TRILL in defaults. That's probably in the ball park for what really needed to be accomplished to clean the slate. As it was, credit default swaps were reduced/defaulted/netted down by approx $20-$30 TRILL and MBS about $4-$7 TRILL, give or take.
mark
Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......