The Economy Is on the Edge of Oblivion
by Jeff Davis
This one pretty much speaks for itself. a CNBC news article reports: “In an exclusive interview with CNBC.com, Wilbur Ross, chairman and CEO of WL Ross & Co., says he sees possibly as many as a thousand bank closures in the coming months. And this will create opportunities for investors.”
Opportunities? Battles, massacres, and natural disasters create “opportunities” for vultures. Never mind the rest of this gibberish. This character says -and he’s probably right- that the collapse of the Western world’s entire financial system will create “opportunities.” Well, sure. Any rich people who didn’t invest in any of the banks and mortgage lenders or financial institutions, which are currently going bankrupt, will no doubt be able to buy lots of foreclosed houses at bargain prices.
When the dust finally settles on the current subprime crisis, there will be four or five huge multi-national mega-banking monstrosities where as before there were several thousand smaller banks.
Notice that our government is selectively bailing out some institutions while others are going on the trash heap of history. According to existing law NONE of these PRIVATE institutions should be getting bail outs. Most of these lending institutions are failing because they chose to make subprime loans out of pure, unadulterated greed. They deserve to go bankrupt. The only people who legally are entitled to bail outs are people with bank accounts, which are covered by FDIC insurance. (more…)