Monday, November 10, 2008

The 1 - 2 - 3 combo of Moral hazard

This is happening all over the world, I call it the "1-2-3 combo of moral hazard":
1. Banks are insolvent (aka bankrupt)
2. Government gives them all the money they want, but the government doesn't have that money
3. The government asks the IMF (International Monetary Fund) for money...
Possible part 4 of the combo: IMF asks money from the Arabic world
Why isn't there any revolution? Why are people just letting their government destroy their country? Why are people so ignorant about this?

It is not because the money doesn't directly come out of your pocket, that it is free.
The debt will have to be paid, and hyperinflation is the most likely way. And that will destroy all the wealth that's left in the Western world. Economically speaking: Zimbabwe is not as far away as some people might think...

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