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VERY RICH'S SOCIALISM

by Fabio de Oliveira Ribeiro Sunday, Jan. 31, 2010 at 6:17 AM
sithan@ig.com.br

Obama times?

After the collapse of USA economy, we can conclude that the capitalism didn't end.

In the Obama times the monopolist capitalism became the VERY RICH'S SOCIALISM. Now all of the American citizens have to contribute involuntarily with their taxes to maintain failed banks and industries without capital .

The new elite (composed by the CEOs - company administrators) it wins million of dollars even when it takes banks and companies to the edge of the bankruptcy.

Well coming to the amazing new fucking world. Nor Lenin (that foresaw the transformation of the capitalism in monopolist capitalism) it would be capable to foresee the VERY RICH'S SOCIALISM.

In spite of all their armies (of soldiers, bureaucrats, public administrators, judges, policemen, etc.) under the VERY RICH'S SOCIALISM the State is quite fragile. The CEOs do what want and all say amen.
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The economy did not collapse

by mous Thursday, Feb. 04, 2010 at 10:26 PM

It didn't collapse. Collapse was averted by pumping money into the system. The government took out a big loan for the system.

They prevented a chain reaction of deleveraging assets. The near term collapse was going to be caused by banks loaning to each other - little banks loaning money to big banks that were "too big to fail" - and those loans defaulting.

This was propped up by a huge real-estate bubble, fueled by speculation, easy credit, and mortgage brokers pushing liar loans.

What bank recapitallization did was preserve the structure, and prevent the bank crisis from becoming a larger, economic shock, and a social collapse.

Now, we're still faced with high unemployment, and the strain of continued deleveraging due to real estate defaults. There's a risk of deflation.

Some researchers have recommended that people intentionally default on their mortgages. That is, don't pay the mortgage, and then wait to get kicked out.

That would cause problems for the banks, as their balance sheets were battered by bad loans combined with houses that are worth less than the loan amount.

If banks started to fail, there would be a run on the banks, and banks would collapse. Without banks, capitalism would stop. The government would have to step in and run the banks, like they do in Communist countries.
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