A BROKEN SYSTEM GUARANTEES AN ACCIDENT

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Subject:	FWC: "…what we still have on our hands is a broken financial system"
Date:	Mon, 23 Aug 2010 10:12:25 -0700
From:	Jas Jain

Rosenberg: "Despite the most aggressive government efforts in the modern era to kick-start the economic cycle, what we still have on our hands is a broken financial system."

 

Even more importantly, what we have on our hands is a broken political system. Hence, in the US we have a broken econo-political system. A BROKEN SYSTEM GUARANTEES AN ACCIDENT. Therefore, we have an accident waiting to happen. Some power needs to force a regime change on Americans. The two-gang political system is part of the systemic fraud whereby false hope stays alive in the supporters of the gang not in power. Economic predators that prey on the working class Americans control both gangs. The voters can't seem to figure this out after numerous disappointments and failures.

Jas

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David Rosenberg; 08/23/10:

"Despite the most aggressive government efforts in the modern era to kick-start the economic cycle, what we still have on our hands is a broken financial system. We hope this is not lost on the perma-bulls among us, but the pool of credit under the umbrella of private label asset-backed consumer and mortgage asset loans has collapsed by over $5 trillion, or by 60% (!), over the past two years. The private market for securitized credit is back to where it was in 2000 when the economy was two-thirds the size it is today. What few people realize is that 100% of the increase in GDP during that wonderful, though obviously artificial, economic recovery coming out of the tech wreck from 2002 to 2007 was funded by the explosion in the securitized credit market. This market is now, for all intents and purposes, defunct and replaced by Uncle Sam's family (Fannie, Freddie, Sallie … and the FHA too)."

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