Sunday, November 27, 2011

Why Europe and the middle class here are in so much trouble

During the 90s de-regulation, or really the de-decriminalization of corrupt banking practices including the "Modernization" of Commodities Trading Act allowed Wall Street and big banking in Europe to load everybody up with over leveraged debt. Then they created derivatives to "insure" against the risk. Creating the bubble to end all bubbles, the end of us all bubble. A quadrillion dollar bubble in a 60 trillion dollar world economy (and a lot of that is just paper).

There were people who sounded the alarm on this, they were by and large silenced by anyway necessary (Eliot Spitzer for example) or just ignored if they could be portrayed as cranks or (gasp) socialists. Huge salaries, perks and bribes were available to anybody in a position of power who would look the other way.  Bill Clinton left office millions in debt and facing possible prison time for any number of trumped up charges. In a few short years he was worth more than $200 million. That's couch cushion change compared to what the people who paid him off are raking in. But remember Clinton only signed laws that Republicans passed, that's where the real treason is.

2 comments:

gruntrucker said...

I belive that the tipping point h as been past. The events of the last few months including the instalation of a new greek and spanish governments,has sealed our fate. The theives have went too far and there is no turning back now. Now how long before we crash and burn?when will the real pain begin? The new years hangover Will be the worst ever it looks as if imf will be activily involved in the euro mess and germany is gonna get pounded. China has its own problems and don't need to come to the rescue of europe. We in the us will be what just hsppened mode 'fore long. Yea man this is gonna hurt.

Anonymous said...

The welfare/nanny/entitlement states are going bust.