Forum Post: Collapse Of Financial System Necessary And Positive
Posted 13 years ago on Nov. 7, 2011, 5:09 a.m. EST by Scout
(729)
This content is user submitted and not an official statement
The Collapse Of Our Corrupt, Predatory, Pathological Financial System Is Necessary And Positive
" The only way to clear a zombie economy is to write off uncollectable debt and liquidate all the assets, loans and hedges. "
That article is well worth the time to read. Good post.
yes time to change tack i think !
Hey, if it worked for Iceland it can work for the rest of us. I think I read something about Argentina doing something similar also.
even Germany has been bankrupt twice not once and they survived
http://www.billshrink.com/blog/6799/10-governments-that-went-bankrupt/
they ( the G20 and the banksters )are fooling everyone
How many people would be willing to go through what is necessary to fix this? How many would be willing to downsize their house and their car?
Have the discipline to self teach instead of 40k on bullshit degrees?
Is there enough will in this country to do it?
Liquidate! Depressions and recessions are a natural part of the economic cycle, designed to remove wealth from the greedy and incompetent and transfer it to the hard workers. The government has not allowed this to happen, but they can't fight it forever!
well said !
Sure no problem. Call to arms. You ready to forcefully take assets from people?
I don't understand? Nobody is talking about taking assets from anyone. This is simply about allowing asset values to find their natural and unadulterated levels
a lot of the assets that banks currently own are loans, business ownerships, houses, cars, credit cards, etc.
when you liquidate a business what the liquidator will do is to attempt to sell off all the assets that it owns in order to pay off its lenders.
in a mortgage, the bank owns the house, in return it helps the family pay for it and allows them to live in it. but when the bank has to liquidate it will have to foreclose the house in order to sell it off to another buyer. then it uses the proceeds to pay its creditors.
if all the banks fail, it will attempt to foreclose pretty much the entire economy, and sell them off to someone else.
currently most of the banks that still have any cash available are in Asia. Forget the european banks, they're in trouble too. so yes, in some sense, you can imagine the outcome of this is that the largest bank on Wall St will be BOC or ICBC.
When a bank goes bankrupt, the mortgage is on sold. The house is not an asset to a bank, the borrower is.
you're talking about the banks doing this. That's their problem not the small guy in the street and they would love to be doing it right now but the MERS scandal has put a spanner in their wheel ha ha ! but you are indeed correct " loans, business ownerships, houses, cars, credit cards, etc." will all need to deflate and quite correctly so so they can be more realistically aligned with people's incomes and employment expectations not the other way around.
well, the small guy in the street will be affected since many of the things we pay for, houses, cars, education, are done through bank loans.
many of our businesses are supported by bank loans.
many businesses also rely on credit facilities to support short term payments and business receipts.
mom and pop stores borrow in order to buy items to stock the shelves that will only turn a profit a month later.
so, if all the banks fail, i can guarantee a catastrophic collapse in not only the big businesses, but the small businesses that ensure everyone has enough canned food to survive a zombie apocalypse.
and you are right that there will be a significant realignment of income and spending for everyone in america.
i suspect there will be a significant adjustment to the population of the united states, which may be necessary to thin the herd and finally make low-skill labour scarce, in demand, and well paid once again.
of course there will be suffering but if people are genuinely concerned about the welfare of their children and grandchildren they will consider it far more palatable in the long-run to give them a decent chance of having a fair go than propping up this Ponzi scheme for the benefit of the very few
definitely.
and let's forget about the grandchildren and children.
we won't even be sure if there will be enough resources to ensure the current generation survive.