CNA reported key lesson from Iceland crisis is 'let banks fail'.
Three years after Iceland's banks collapsed and the country teetered on the brink, its economy is recovering, proof that governments should let failing lenders go bust and protect taxpayers
The North Atlantic island saw its three biggest banks go belly-up in the October 2008 as its overstretched financial sector collapsed under the weight of the global crisis sparked by the crash of US investment giant Lehman Brothers.
"Where everyone else bailed out the bankers and made the public pay the price, Iceland let the banks go bust and actually expanded its social safety net"
"Where everyone else was fixated on trying to placate international investors, Iceland imposed temporary controls on the movement of capital to give itself room to maneuver,"
The idea that bailing out banks is bailing out the rest of economy is a lie. What Iceland did was to default the bankers and do a Mahathir capital control. In time to come, more people will recognize that Mahathir's capital control is a wiser than LKY's free movement of capital.
While people blame property developers for high real estate price, few actually recognize that banks actually profited massively from the asset inflation. Through counterfeiting (fractional reserve banking), banks are actually shylocking us at probably around 30% or more interest rate versus on amount of base money deposit, depends on the reserve requirements. (Can someone do the actual calculation, its quite complicated)
Banksters in Shenton Ways reside on the poshest building not because they are smart or hardworking, but because they feed relentlessly on you and me. We can only thank God if our parasitic bankers have good moral values contented just to shuffle papers around, playing office politics, do nothing and collect rents from us. Else, they would be planning scams by pushing derivatives just to blow everyone up so that they can get huge amount of bonus.
Three years after Iceland's banks collapsed and the country teetered on the brink, its economy is recovering, proof that governments should let failing lenders go bust and protect taxpayers
The North Atlantic island saw its three biggest banks go belly-up in the October 2008 as its overstretched financial sector collapsed under the weight of the global crisis sparked by the crash of US investment giant Lehman Brothers.
"Where everyone else bailed out the bankers and made the public pay the price, Iceland let the banks go bust and actually expanded its social safety net"
"Where everyone else was fixated on trying to placate international investors, Iceland imposed temporary controls on the movement of capital to give itself room to maneuver,"
The idea that bailing out banks is bailing out the rest of economy is a lie. What Iceland did was to default the bankers and do a Mahathir capital control. In time to come, more people will recognize that Mahathir's capital control is a wiser than LKY's free movement of capital.
While people blame property developers for high real estate price, few actually recognize that banks actually profited massively from the asset inflation. Through counterfeiting (fractional reserve banking), banks are actually shylocking us at probably around 30% or more interest rate versus on amount of base money deposit, depends on the reserve requirements. (Can someone do the actual calculation, its quite complicated)
Banksters in Shenton Ways reside on the poshest building not because they are smart or hardworking, but because they feed relentlessly on you and me. We can only thank God if our parasitic bankers have good moral values contented just to shuffle papers around, playing office politics, do nothing and collect rents from us. Else, they would be planning scams by pushing derivatives just to blow everyone up so that they can get huge amount of bonus.
1 comment:
An ex-Morgan Stanley salesman once told me how much he admired the smart and rich people at goldman. If even clowns in the industry are under illusion that bankers are "rich because they are smart hence fully deserved their pay", then all those promsho scholars serving us in the government must surely be under this "meritocracy" spell too. Little do these innocent folks understand the world according to goldmanites: these assholes are rich because they front-run every sucker out there (there are a few on trial now, but Corzine will escape), including morgan stanleys and our venerable sov wealth funds, and they have placed their people in every major government and supra-national institutions in the capitalistic world hence in a position to decide on interest rates, timing of money printing and regulations. When even Druckenmiller call it quits, the capitalistic world are no more free. Surprisingly, goldmanites' control are no match for the Man up there, and when the pieces become too complex to juggle, run for your life...
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