A credit freeze occurs when the system becomes illiquid. In a full-on illiquid condition/credit freeze all transactions stop, AND THE ENTIRE FINANCIAL SYSTEM LOCKS UP
My only comment is that the crisis is much worse than simply a case of too much debt and too little liquidity. That's the reason its "multiples worse" today. The crisis lies in the inability of Americans to survive the economic breakdown the financial crash is precipitating. The debt is like a cancer in a patient. The more cancer the less chance the patient will survive. Cut the the cancer out and the patient has a better chance of survival.
And like a cancer clogging up the arteries of a patient, trillions of derivatives must be canceled to free up credit for long term development of the US physical economy. Trillions of Derivatives held by commercial banks must be canceled. Just cancel them! Then kick the investment banks out of the FDIC. Protect the commercial banking system from Wall Street with a fire wall.
How do we do all this? BY PASSING GLASS-STEAGALL LEGISLATION, HR 2714 MUST BE PASSED ASAP. This is what Congress should be focused on. Forget who did what to who. We'll all go down with the Titanic if we don't restore Glass-Steagall.
Those "idiots" know. But their dangerous moves make them money, lots of it. And they do not face the same risks that you, and I, do. Has any of the bankers/investors who gave us the 2008 financial crisis ever been brought to justice ? Has any of them paid back ill-gotten gains ? Those "idiots" learned, they learned a lot. How to bankrupt hundreds of thousands of people, not just in the US, but all over the world with their schemes. And how to get away with it.
My only comment is that the crisis is much worse than simply a case of too much debt and too little liquidity. That's the reason its "multiples worse" today. The crisis lies in the inability of Americans to survive the economic breakdown the financial crash is precipitating. The debt is like a cancer in a patient. The more cancer the less chance the patient will survive. Cut the the cancer out and the patient has a better chance of survival.
And like a cancer clogging up the arteries of a patient, trillions of derivatives must be canceled to free up credit for long term development of the US physical economy. Trillions of Derivatives held by commercial banks must be canceled. Just cancel them! Then kick the investment banks out of the FDIC. Protect the commercial banking system from Wall Street with a fire wall.
How do we do all this? BY PASSING GLASS-STEAGALL LEGISLATION, HR 2714 MUST BE PASSED ASAP. This is what Congress should be focused on. Forget who did what to who. We'll all go down with the Titanic if we don't restore Glass-Steagall.
Truth! And the idiots have learned nothing.
Those "idiots" know. But their dangerous moves make them money, lots of it. And they do not face the same risks that you, and I, do. Has any of the bankers/investors who gave us the 2008 financial crisis ever been brought to justice ? Has any of them paid back ill-gotten gains ? Those "idiots" learned, they learned a lot. How to bankrupt hundreds of thousands of people, not just in the US, but all over the world with their schemes. And how to get away with it.