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What Have We Learned From The Banking Crisis? (Spoiler Alert: Nothing Good)
"The crisis doesn't destroy wealth, it merely evidences the extent to which wealth has already been destroyed by stupid investments made in the boom." This is critically important, as banking (or financial) crisis do not start the day the market collapses but years before, and as Punk Economics' David McWilliams explains, this is usually driven by banks (central or otherwise) beginning to lend recklessly using other people's money to ramp up asset values. So, with that in mind, what have we learned from the 2008 banking crisis? (spoiler alert - nothing good).
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great video, until they said we need more regulation. That helps diddly squat, because the bankers are the regulators.
Only thing that will help is collosal failure, liquidation and ensuing fat cat banker suicides. Can't say I will shed a tear.
+1 people are bad so we need a government made up of people are bad so we need a government made up of people are bad so we need a government made up of people are bad so we need a government made up of....
The government should have let AIG, Goldman, Chase, GE, GMAC, Freddie and Fannie fail ... it might have been painful, but at least we wouldn't be where we all now.
would it be too corny to call this video "Farage Punk"?
Austerity is the last thing you need when the economy collapses from too much debt and spending.
Riiiight so instead we should inject more heroin into the drug addict...
Greed is good.
We learned, four legs good, two legs baaaaaad...
Animals came from miles around
So tired of walking so close to the ground
They needed a change, that's what they said
Life is better walking on two legs
But they were in for a big surprise
'Cause they didn't know the law!
https://www.youtube.com/watch?v=wRljdzY3dXs
Almost every religion and philosophy on earth will teach you that greed is the root of all evil !!
Except for those douches like Max Weber and their ilks like Milton Friedman…
Doing god’s work ?
Greed in itself is not a problem. It's greed coupled with power and influence that is the extreme danger.
A work associate of mine is very greedy. She drives a Mercedes and shows off her $2000 handbag to us daily. Every day is endless talk of what bling she wants or trips she plans to take. I consider her a joke. Her husband, a pain in the ass. He is the only one suffering from her avarice.
Miffed;-)
Ever read "Madame Bovary"?
Absolutely! It shaped my life. But, instead of pursuing affairs to escape the mundane and banality of life, I changed my life to extraordinary and had affairs with my husband. I literally did the reverse. How funny life is the opposite from what one perceives. And my husband loves me for it.
Miffed;-)
"Wealth is a wonderful tool (to do good with), yet a demonic master."
--Author Unknown
miffed, missed you, glad you are posting again, watch out for MERs, and ebola - the microbiotic world keeps trucking along, and modern pharma is looking for new ED's some how sex always gets the $$. antivirals and good antibiotics not so much.
Tx, I've been attempting to wean off doing so many lines of ZH, afraid I was becoming too hooked. Funny how Doomer can be so seductive. Perhaps it is just the times we live in today.
I have been contemplating the vast changes in my own profession. The incredibly difficult to treat infections so commonplace today. The dire health most patients are in today, some even half my age. The frustration of Drs trying to cope in an impossible environment. The feeling I am no longer a person that can make a difference in people's lives. I often fight a sense of hopelessness. Then I realize many people in all professions may be experiencing the same angst. There is a commonality. We all sense the Perfect Storm on the horizon and feel passive and impotent to stop it.
MERs is a worry. The idea of a deadly coronavirus makes me shiver. Stay well and be safe.
Miffed;-)
What did we learn from the banking crisis?
Wait around awhile and there will be another one.
Wash rinse repeat
How does that guy draw so fast?
The wealth was stolen, not destroyed.
You are only half right. A great deal of wealth was also destroyed in the course of war. It was also destroyed when too many malls were built. Ths list of wealth destroying malinvestments is really quite long.
They borrowed our savings and spent them building vast tracts of desert McMansions, paying single moms with sub-80 IQs to have more babies, and building more prisons to incarcerate those babies. How again was the wealth "not destroyed"?
I have learnt that life around me can get weirder than I thought it could without going into full societal collapse. Also the general populations ability to see as the new normal today what would have been considered full retard 5 or 10 years ago is more prevalant than I would have imagined.
What was learned in 2008? The government and the Fed will bail bankers out and not prosecute them. What do they expect, ahead? Another bail-out and non-prosecution, whenever.
I learned that credit can be used as a weapon against society.
So, deflation is bad, and more regulation would stop this from happening again. Hrm...I don't think these punks learned the right lessons
Deflation is good for honest workers.
Inflation = theft
Deflation = replenishing
Bankers and government are one.
never ever forget one of my client telling me hes 100% safe would anything happen......he lost 80 million over night with AIG!!!! havent seen him since?
If 'wealth' is things in the real world then a mere financial crisis only transfers ownership. A crisis destroys paper claims to wealth but the buildings. companies, brains and gold will still exist after the paper claims are found to be worthless.
"If you lost your pension savings to a fraudulent crony capitalist economic system, the real assets on which the scam was based still remain, and will continue making money for the criminals, so it's no big deal if your paper claims were destroyed".
Surely great solace
Who can forgot Section 8 of Paulson's original proposal to Congress on the bailout that stated:
"Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency."
Doing god's work...
The Nixonian cum Reaganista Oligarchy plan was to transfer wealth from poor to rich and transfer debt from rich to poor via the CB balance sheet; all the while pauperising the first world middle class. They knew that back then, when they revoked BW and started printing without limits and had to pull in the Arab sheikhs who owned the Oil of Jerusalem on which the current paradigm is built.
Neo feudalism is all about theft for reasons of "divine rights" --now practiced by state apparatus under the crony Oligarchy gun to feed the rich-- until there is no more to steal and then we head to war.
Thats what happened when Kaiser Wilhem challenged "Pax Britannica" in name of Lebensraum back in 1914 and thats now happening again as Putin/China challenge Pax Americana and petrodollar hegemony under the bubbleonomics cloud spawned by the runaway debt printing. Only today Pax Americana created this semblance of "lets all get rich at Davos" global oligarchy club zeitgeist thanks to Outsourcing and slave labour WTO blessed arbitrage scam.
Its all now falling apart as thieves and empire builders are only friends in good times not in bad times.
I don't know if Putin/China are as belligerent as Kaiser Wilhem; so my analogy is not picture perfect; History rhymes it doesn't repeat.
But these are now tipping times as whatever the issue, the consumer capitalism model post WW2 and the Banksta cancerous morph since Reaganomics began, both seem like dinosaurs.
We will need a new paradigm once we leave this fossil fuel fight for Jerusalem; the real backbone of Pax Americana power since 1971-- all fed on unlimited debt. The bigger the lie, the longer the scam, the bigger the pain and the deeper the reset. Thats history.
Ultimately it doesn't matter if Putin and China are belligerent. The problem is the cronies in the west have taken just about everything, so there's not much left to take and share. So their choice is to make do with what they have, start a war themselves, or deal with what comes out of a reset.
The parasites have killed the host. There's no going back.
I learned something after the banking crisis.
I thought I had seen the boundaries of stupidity being reached...
I was wrong. Apparently, like the universe, stupidity is boundlessly infinite.
The banks learned how to troll the fed res even better
The fed res learned how to troll the american taxpayer even better
"stupidity is boundlessly infinite, and then some" I think the monster is on steroids!
Liquidate, liquidate, liquidate.
Fire sale, bitchez!
It is impossible to regulate moral hazard.
So easy even a Punk can get it...
We have to capture the leprechaun if we are to avoid another crisis - simple really.
https://www.youtube.com/watch?v=_qO66Rmi1Mw
Good video. Great drawing. Wish I could draw good.
Gets a little hinky at the end, he doesn't know his capital from his leprechauns, doesn't know his debt from his demand. Sadly, I do agree that we need more regulation, at the very least bring back Glass-Steagall.
And public beheading of a hundred or so banksters would be helpful, too.
"And public beheading of a hundred or so banksters would be helpful, too."
I'd call that a good start.
NO JOKE
"The Public Be Suckered"
http://patrick.net/forum/?p=1230886
How can anyone say the public had nothing to do with these crises when the public is what elected politicians promising all sorts of government benefits that are impossible to provide? No mention of regulating government in the video or informing the public it is mathematically impossible to provide the unfunded liabilities the government has piled up over the decades since the New Deal.
http://www.usdebtclock.org/
david mcwilliams to an extent but more so daniel arielli and the parade of social incentive and 'network' theorists are simply apologists for the governing order.
they have done their best over the past few years to deflect actual responsibility by leadership and claim this is all just a limited incentives problem that has nothing to do with people who KNOW WHAT THEY ARE DOING, and understand THE GAME THEY PLAY WITH OTHER PEOPLE'S MONEY.
it's a tiring meme.
it is no accident the proto-globalist 'TED' has been promoting this view as well.
http://www.ted.com/talks/james_b_glattfelder_who_controls_the_world
there is a reason certain meme's play well and get exposure. call this soft propoganda, as opposed to actual bought and paid for shit on fox/cnn/cnbc.
Already at the 1 minute and 1:30 mark that video was a dismal failure, from a theoretical point of view, although still fun to watch.
The problem is "using other people's money."
... ??? NO!!!!!! THE PROBLEM WAS
PRIVATE BANKS ABLE TO MAKE
THE PUBLIC "MONEY" SUPPLY
OUT OF NOTHING AS DEBTS.
To understand how that insane system got going, one has to look enough into the history of the political processes to be able to perceive that the methods of organized crime (bribery, intimidation, and assassination) were applied by the international banksters to take control over pretty well all of the world's national governments, and especially within the countries dominated by the Anglo-American (Zionist) Empire, that has dominated the whole world more and more for a few Centuries, and especially since the end of World War II.
Of course, one can almost completely count on the vast majority of people NOT wanting to understand that deeply enough, and so, they tend to either deliberately ignore THE PROBLEM, or propose bullshit "solutions" that deliberately ignore understanding the true nature of THE PROBLEM. This video did NOT recognize THAT PROBLEM, and did NOT propose doing anything significant about THAT PROBLEM.
All of the lower level components of the social pyramid systems merge at the top. Governments are the biggest form of organized crime, controlled by the best organized gang of criminals, which currently happen to be the internationally operating banks. Those banks got to be what they are through the persistent application of the principles and methods of organized crime, in order to be able to control countries. Their supreme achievement was to get legalized what otherwise would be the counterfeiting of the public money supply.
In my opinion, the right answer IS indeed "NOTHING," to the question asked by this video: "What Have We Learned From The Banking Crisis?" This video, for all of its cute presentation of some of the correct points, such as dramatizing William K. Black's book, "The Best Way To Rob A Bank Is To Own One," is otherwise so ridiculously superficial as to barely be worth calling to other people's attention.
The CENTRAL CORE CONCEPT is the creation of the public "money" supply out of nothing as debt by private banks. Understanding that takes understanding how the methods of organized crime control civilization. Proposing realistic solutions requires then not deliberately ignoring how organized crime controls government, but rather, paying attention to the deeper meanings of that situation: money is measurement backed by murder. The debt controls depend upon the death controls. Banksters were able to apply the methods of organized crime, in order to be able to take control over the political processes, so that there would be systems of legalized lies, backed by legalized violence, which would favour the special interests of those banks, and the other corporations that grew up around those banks upon that foundation.
"Better Regulation of Banks" is a ridiculously superficial thing to suggest as being an adequate solution to the problem that society is actually controlled by the principles and methods of organized crime. Understanding how and WHY that happened is the necessarily preliminary step, before going further. This video slides across the surface regarding how banksters operate as the biggest gangsters, that can effectively threaten governments, to get those governments to do what the banksters want those governments to do. The banks originally became what they are by having previously successfully applied the methods of organized crime, to dominate the political processes, for a long, long time, which success of established systems of government enforced, privatized financial frauds, automatically got exponentially worse, because its fundamental structure was designed to operate in those ways.
Since the current monetary system is backed by the murder system, the real problems are necessarily those two things combined into the integrated systems that they are today. Nothing outside of that frame of reference can comprehend or cope with THE PROBLEM, which is going to continue to get worse, faster, at an exponential rate, because making the public "money" supply out of nothing, as enforced frauds, not only drove extreme social polarization, it also enabled runaway strip-mining of planet Earth.
THE PROBLEM enables civilization to maintain attitudes of evil deliberate ignorance towards the full consequences of what it is doing, because everything is organized through fundamentally fraudulent financial accounting systems, which only work because they are backed up by force. That becomes a runaway paradox, where the people pay for their financial future to be destroyed, while their children and their children's children will be even more destroyed.
THE PROBLEM is that human civilization, as a energy system, is regulated by its death controls, that back up its debt controls. The banksters were able to apply the maximum leverage debt and death controls through the political processes (by bribery and intimidation, and assassination of politicians that could not be otherwise bribed or intimidated), in order to result in the rampant runaway financial fraud that dominates everything, which has turned everything into a HUGE BUBBLE, with the total human population and all human activities are now based on the fraudulent financing of the strip-mining of planet Earth!
For sure, "we have learned nothing from the banking crises," because the vast majority of people do not want to learn anything about that. Our political economy has always been inside our human ecology, and therefore, the money system has always been inside of the murder system. The history of successful warfare being based on deceit segued into successful finance being based on frauds. All of those things make perfect sense, when looking at human beings and human civilization as general energy systems. Furthermore, the nature of the necessary theoretical solutions, as the evolution of better human and industrial ecologies, integrated with the natural ecologies, also make perfect sense from the perspective of general energy systems.
However, since our established systems are based on the long history of being successful through the maximum possible deceits and frauds, while the controlled opposition to those established systems operates within the same frame of reference, we can not move forwards, out of the mad vicious spiral of debt slavery, turning into debt insanities, which are threatening to cause death insanities, because almost nobody will admit the axiomatic facts that human society does, and must, operate according to the principles and methods of organized crime.
The banksters were merely the best organized gang of criminals. They get away with that primarily because almost everyone else has been successfully conditioned to not want to understand that, and not want to do anything about that. There are NO possible "reforms" that are workable, which still stay within the same system which enables the BIG PROBLEM, which is private banks legally making the public "money" supply out of nothing as debts. ONLY monetary revolution is enough to resolve the real problems, and such a monetary revolution must necessarily address the issue that the monetary system is backed by the murder system, because whatever the debt controls are has no real meaning without the death controls to back those up.
Since we are rushing towards future situation wheres the debt insanities are going to provoke death insanities, we ought to understand how and WHY that happened, by which there were bubble after bubble allowed to be blown, and then pop, due to the basic ways that "money" could be made out of nothing, to speculate with. While that drove social polarization to the point where it now seems irreconcilable, even worse, it drove the destruction of the natural world to the point where it seems irreparable, because the BIGGEST BUBBLE was the overall creation of "money" out of nothing, to pay for strip-mining the planet, as fast as possible, in order to pay for debts incurred by creating that "money" out of nothing, in order to pay for strip-mining the planet, which is the vicious spiral we are trapped in now ...
Overall, the biggest of all bubbles popping is going to be when the ability to increase the strip-mining of planet Earth is simply no longer physically possible. At the present time, that threatens to provoke extreme death insanities, as the result of what happens after the debt insanities blow-up. Approaching the monetary systems in ways where they are perceived as energy/information systems, which can be reconciled and integrated with the energy/information systems in the natural world is possible. It would also be possible to have a general energy system based understanding of money be useful in the areas of emerging industrial ecologies. It would also be possible, from the perspective of general energy systems, to understand how and WHY "capitalism" ended up being dominated by frauds and murders, to produce the actually existing social pyramid systems, where there is a partnership of government, as the biggest form of organized crime, controlled by banksters, as the best organized gang of criminals.
However, such a general energy system view of the human ecology and political economy ends up going from the analysis of civilization actually operating according to the principles and methods of organized crime towards possibly being able to operate combined money/murder systems which are done as better organized crime, due to that enabling a greater use of information and higher consciousness, or more generalized self-awareness of human beings doing that.
Human beings have always been operating as robbers in their environment. However, technologies to be able to do that which are trillions of times more powerful have been developed, but with barely any better understanding of human beings and human civilization being allowed to emerge, since any such better understanding would immediately recognize THE PROBLEM OF PRIVATE BANKS MAKING THE PUBLIC "MONEY" SUPPLY OUT OF NOTHING AS DEBTS, AND THEN CHANGE THAT!
RM, Bill Black interviewed on the street at OWS:
http://www.youtube.com/watch?v=4XJe7O-3QBc&feature=player_embedded
-enjoyed the FKNNEWZ! thanks!
-Kurzweil did post on Omohundro/autonomous systems the following Monday
http://www.kurzweilai.net/preventing-an-autonomous-systems-arms-race?utm...
- still working on yours of two weeks ago
"So, with that in mind, what have we learned from the 2008 banking crisis?"
NOTHING. IT WAS ALREADY KNOWN LONG AGO.
Why did Glass Steagall exist? Because of what happened in the 1920's.
Why did the SEC have leverage limits on investment banks? Because they knew leverage above 12 to 1 was dangerous, from previous experience.
Let's stop this nonsense that there was something to learn from 2008. The fact is that they knew and got rid of the regulations specifically so what happened in the 1920's could happen again, for the benefit of certain people.
The well known math on bubbles is that 100% burst and deflate. Yet we have seen multiple bubbles and they are working on another one. By the way, i heard yesterday that Warren Buffett said he sees no market bubbles. I don't remember him saying he ever saw any of the other bubbles, so how is he an expert on bubbles, now?
I think the rendering of Paulson was quite good.
Well, lets add a little excitment here. Don't usually use BOLD type, but I just had a call from a comprate in BLANDING, Utah where apparantly another Mesquite, Nevada is taking place as I write. Blanding is a hole in the wall town just south of Montecillo and just over the western edge of Colorado. Mostly an "Indian town" as the Navaho Reservation begins where the 4 coners of Ariz.,-N.M. Colo. & Utah come together.
Seeing as how I threw out my T.V. a year ago I have heard nothing. Has anyone heard anything? I believe some of the militia that was at Bundy's Ranch are there now; and are calling for some help.
Any news would be appriciated. Milestones
http://www.denverpost.com/news/ci_25692048/recapture-canyon-utah-be-site...
If we were all mice it would be an issue of all these bankers and those in charge constantly moving our cheese. I might add that they would nibble a bit each time they moved it. This means the value of "something" is not an issue to take lightly.
Value is not a constant and can be derived from several factors such as supply and demand or utility value, things can spoil or become obsolete making where you invest very important. Value is not always destined to rise or even remain stable. The whole concept of value is also deeply rooted in "relevance" meaning drinking water is most valuable to a man dying of thirst. More on what constitutes "real value" and why it is important in the article below.
http://brucewilds.blogspot.com/2014/05/value-and-worth-constantly-change...
May I suggest the authorities are acting primarily to prop up governments as well as the economy by saving the financial system. It is important to remember these authorities are politicians and bureaucrats that want increased power and influence, and guess what, they may have hit the jackpot. Those in power have joined with the banks to create the "Financial-Political Complex" that promotes the current financial policy and supports banks that are "to big to fail".
Many people say that the way out of the housing crisis is to let everyone fix their mortgage debt at super low fixed rates, then inflate, inflate, inflate? Well perhaps the government's way out of its own debt is to secure low fixed rates for itself then inflate away when it becomes necessary. It should not bring comfort to the average man that these to unholy forces have joined together in such a union. More on this subject in the article below.
http://brucewilds.blogspot.com/2012/10/the-financial-political-complex.h...