- “In the end, the picture is so large, and the leverage in the banking system is so enormous that when you start delivering, there is no way out of this scenario, and that’s what’s happening right now.”
CNBC’s David Faber: “It’s a complicated concept…”
No, it’s not; it’s a remarkably simple concept: there is no money. Got it?
If we had simply gotten on with it four years ago, and not bailed anyone out, there would have been massive pain for a short time, the big banks and their investors would have taken massive losses, and we’d be recovering by now. Instead, we piled debt on top of debt, the same people who got us into this mess remain in charge, Congress remains bought-and-paid-for, Cantor’s idea of “leadership” is to be totally absent from any credible plan to balance the budget, and we totally destroyed confidence in the financial system.
There is no “recovery” until the market interventions stop; they are simply delaying the inevitable and guaranteeing it will be worse when it finally gets here… which is looking like soon.