"What is crooked cannot be made straight, and what is lacking cannot be counted." Ecclesiastes
Hmmm, let's see. How about injecting billions of capital in the banks crippled by reckless speculation and fraudulent lending, and obscenely high pay and bonuses to the people who ran them.
And then we can beg the banks to start making loans to us with our money to get the credit expansion back on the upswing.
That should fix the problem, right?
This is a Ponzi scheme reaching parabolic heights. It has to retrace at least fifty percent, and the US economy must get back into some sort of sustainable structure, period.
The alternative is for the majority of Americans and British to accept debt peonage or "go into service," and most of the world's economies to adopt the dollar and sign their people up for a neo-colonial, centrally-managed political structure.
Welcome to the new Anglo-American Empire, founded not on supremacy of the seas, but of the financial markets.
The most probable outcome is that the looting of the Treasury will continue until the current crew in Washington leaves town, and they dump the problem hard into 2009 which will be the year from hell. Then they will wind up their spin machine about low taxes and trickle down economics and blame it all on the new Administration.
Off Balance Sheet Lending Factors - Cumberland Advisors pdf
