Bill Black has literally written this blog’s mission statement in his proposal for systemically dangerous institutions.
Linking to Karl Denninger’s reference to it is a good way to introduce the guy with “economic common sense” from Niceville, FL (I just spent a rainy week’s vacation two hours south of him).
When we have the FDIC actually considering borrowing money from taxpayer subsidized banks to replenish their deposit insurance fund, need I say more?
As Wegelin, Sprott, Denninger, myself and a few others have said repeatedly, the current Keynesian policy of stimulus fueled credit expansion is mathematically unsustainable. What we mean by “unsustainable” is not equivalent to a recession or a depression, we are talking about a TOTAL COLLAPSE of the structure of value.
And, for the record, I would note that Karl is being more than fair with 8.78% compound annual debt growth (considering the amount of debt that is hidden from FED statistics) and as far as 5% GDP growth, when you consider the amount of artificial “growth” factored into GDP these days from the financial markets, which is the only growth we have, 5% is preposterous.
So Karl … I don’t think we have one more cycle left … I think we’re in the final cycle now and approaching the tail end of it, despite the costly, artificial delay. The next straw breaks US. The only question now is, how long can we continue to delay the inevitable and at what ultimate cost?
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My comment is not for this particular post. It’s the way I view not only this post but your entire site. KEEP UP THE GREAT WORK!!! Our tax dollars has already made these white collar criminals too wealthy already!
But why should they think any different? We’ve bailed out these people several times over the past century. They knew the taxpayers money would come to the rescue when they entered their ‘den of theives’.