'..giant fiat money Ponzi scheme made up of unpayable government debt and de facto insolvent fractionally reserved banks..'<blockquote>'We would note here, as we have repeatedly done before, that it does no-one any good to pretend that losses don't exist or that the giant fiat money Ponzi scheme made up of unpayable government debt and de facto insolvent fractionally reserved banks can be forever kept going by heaping new debts atop the old ones. If we want genuine, sustainable economic growth to resume, the only way to achieve that is to bite the bullet. Acknowledge the losses and let them fall upon those who have invested unwisely. This is not merely a question of morality, as prominent Keynesians like Paul Krugman keep saying. It is a question that concerns the system of free market capitalism itself. Capitalism is not supposed to privatize profits and socialize losses. This is a perversion of the free market system that will ultimately serve to destroy it.
...
Finally, before it is out of date, we want to point readers to a
recent interview by the 'father of securitization', Lew Ranieri, on the state of the US housing market. He echoes the concerns that
Ramsey Su has enunciated in these pages. The US housing market remains quite sick, in spite of the wagon-loads of money Ben Bernanke's Fed has printed. An old adage is confirmed by this fact: the central bank can print money, and/or encourage the commercial banks to increase the credit and money supply, but it has no control over where this money ultimately goes.'
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A Crash In Saudi Arabia, Arrogant Eurocrats and a Look at the Markets, March 2nd, 2011</blockquote>