The Business Cycle, Explained

December 14, 2009

The deficit issue is truly absurd. One thing I didn’t think to mention in my earlier post is the staggering circularity of it all.

The banks foul up, lose trillions in brainless, hugely risky investments, thanks largely to the rating agencies…

The people, via the state pay for those losses, propping up the hapless banks, which then..

Invest the money granted them in the name of the people in government bonds and other instruments…

Which they demand be kept stable and lucrative via rating agencies,  who demand that governments take “painful” measures to cut spending and hurt the people…

Who bailed out the banks and now have to go into more personal debt to pay taxes, pay for essential services and a decent lifestyle..

While the banks and raters (and politicians) wander off with a big sack of swag and find news ways of buggering up the financial system based on personal debt…

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