Saturday, July 28, 2012

Revloution Coming

The current policy of bailing out troubled banks worldwide is not sustainable.

In Ireland, the government used  a European bailout of $64 billion to save their banks. The hook in the arrangement meant austerity for the population -- a lower minimum wage, cuts to health care and pensions, and rising fees and taxes. The result has been higher unemployment and a stagnant economy.

This is precisely the type of economy the banks convinced the government would happen if they were not bailed out. The cash infusion made no difference to the economy. Bankers are richer.

The net result -- bankers survive, likely awarding themselves fat bonuses for their brazen salesmanship. As the chill descends on the people, bankers are laughing all the way to the bank, as it were, and all the way to their yachts in the sunny Mediterranean.

Contrast this with Iceland where the government allowed its three major banks to fail. The economy is improving, unemployment is down, and some bankers will be charged criminally.

It won't belong before citizens on the Continent see the folly of their politicians supporting the rich by burdening the poor. It cannot last. They will revolt. It will not be nice.

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