In the case of bailing out Wall Street – and thereby the wealthiest 1% of Americans – while saying there is no money for Social Security, Medicare or long-term public social spending and infrastructure investment, the beneficiaries are obvious. So are the losers. High finance means low wages, low employment, low industry and a shrinking economy under conditions where policy planning is centralized in hands of Wall Street and its political nominees rather than in more objective administrators.
That is the issue. Why must there be fantastic sums, fantastic, available to bankers and generals and austerity for others? Quite obviously the reasons are political rather than economic.
The whole article is worth reading
HERE
Friday, in the hope of being able to somehow muddle through without either taking responsibility of their own or embarrassing themselves in front of their financial controllers, Merkel and Sarkozy are said to have reached a compromise in their positions about whether private investors (those same commercial banks they claim they regulate, but to whom they owe their positions) should suffer losses on the fantastic sums of Greek debt they extended when they thought they would be bailed out if things went badly or if things went very badly they would still keep their own bonuses. not that they were wrong!
I think it's June 25th. that the ECB makes a decision about whether to extend another fist full of euros to Greece to meet current obligations on the debt they owe to those banks that they can never ever retire. You can depend on the ECB to do just that - with somebody else's money. Yours! - if the IMF is involved. Then in the US they will claim again they have to cut "entitlements" still more to balance the budget. The amusing part will be to hear how they justify doing it.
Other recommended reading:
This from Michael Pettis
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