Chris Whalen estimates that all the money poured into the bank rathole represents only 25 percent of what is going to be necessary. That’s right, he estimates that three times the trillions already put in are going to have to be added to this mess.
The bailouts were a terrible idea. The people knew it. Honest economists knew it. Likely, many of the politicians knew it, but they were in the pockets of the financial industry.
As a result we have accomplished great harm and done no good other than to temporarily postpone and make larger the day of reckoning. It is getting very close.
A must listen interview for anyone that wants to know what is coming.
To paraphrase one of Whalen’s points: Banks are not the bad guys; government is the evil. Of course there is plenty to not like about banks and how they comported themselves. However, none of their behavior could have happened without government encouragement.
To listen, click here.