Saturday, October 29, 2011

Debt Obsession XXX

So why have lenders been willing to lend to those who cannot pay?  The key reason, I think, is that they believed that they would be able thereby to enslave the peoples of the nations defaulting - or even whole continents.  Thus, the citizens of all of Europe and the United States are be dragged through economic disaster in order to payoff unsuccessful bankers -those who lent the money - and successful gamblers who made winning bets on credit default swaps.

The stock markets took a big uptick last week in the belief that Europe had contained its monster debt problem. There is reason to suspect that that belief was erroneous and we might traverse the same territory in reverse next week, but in any case the underlying problems remain.  Is there any way to cure reckless governments and banks of their bad behavior?

Slavery didn't work for individuals, so there isn't much reason to be optimistic, but the credit default swap, at least in its present form, sure looks like a pretty good approximation of beast of the apocalypse.