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They (our government, businesses, banks, stock market players, hedge fund managers, etc.) are simply trying to continue the same old game of unsecured credit to big business, banks and to speculators that has caused this mess in the first place. It has nearly thrown us into another Great Depression as it is.
Tell me one time, when you or I could go as an individual or small business and say, “I want to borrow $30,000 or $30 million dollars for nine months, with nothing to back it up except that I may have that money later from sales to pay it back?” Since when would our government or a bank or a Wall Street brokerage or a business allow us to do that and give us that money, no matter what our credit status?
Since when is that solvency? When did that become acceptable standard operating practice for businesses? Did they forget what happens when the four laws of leverage are broken and everything is operating propped up on borrowed money and not on reality?
They know they have to change the game to solvency based on reality rather than credit and pretense –
So, why are they dicking around about it?
Why would they be trying to maintain the same leveraged game throughout our business, banking and securities arenas? Do these brilliant people not understand what that will do more quickly than they can imagine at this point?
How could they even consider continuing the same game in the same manner and create “solutions” intended to do no more than to continue it, hide it, insure it and encourage it while not making the whole system or any part of it solvent?
– Written by Cricket Diane C “Sparky” Phillips, 10-14-08, USA