Monday, February 23, 2009

The Banking System in One Paragraph

When Jim Kunstler is on, there are few better at illustrating the reality behind the frantic, Oz-like, howlings of the Powers That Be as they try to jawbone the United States back into a state of delusion -

The Abyss Stares Back
...The sad truth is that banking has become a Chinese fire drill -- a frantic act of futility -- as insolvent companies persist in covering up their losses in order to avoid the counter-party hell of credit default swaps that would ring the world's "game over" bell. This can only go on so long. All the chatter about "nationalizing" the banks really boils down to what kind of bankruptcy work-out will they be put through, how destructive will the process be, and how much of the pain can be shoved forward in time to people now in diapers and their descendants...

No comments: