Wednesday, March 4, 2009

A Total Collapse is Possible

One of the leading gangsters of international capitalism, George Soros, believes so :
Soros said the turbulence is actually more severe than during the Great Depression, comparing the current situation to the demise of the Soviet Union.
He said the bankruptcy of Lehman Brothers in September marked a turning point in the functioning of the market system.
Lehman Brothers was a turning point because it was the first time in decades there was no bailout for an institution connected to the wealthy. Capital around the globe was heavily damaged by the bankruptcy, and the result was a collapse of trust in the over-leveraged financial system. I am not arguing in favor of a bailout, post facto, but it would have delayed the day of reckoning a bit more.

A second leading gangster, Paul Volcker, echoes Soros's pessimism :
I don't remember any time, maybe even in the Great Depression, when things went down quite so fast, quite so uniformly around the world," Volcker said.
Both of these men are insiders, with extensive connections, intelligence and access to information. Because of this, their comparisons with the Great Depression and the collapse of the Soviet Union are especially significant. It signals unease at the highest strata of power. Few scenarios should be left off the table, when considering the economic, social, and political resolutions to this crisis.

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