Extracts lifted from:
~ Charles Hugh Smith. [Of Two Minds]
Is anyone else tired of the entire cast and threadbare plotlines? The “crisis” drama could be dispensed with in short order:
A. The bickering couple(s): get a divorce and quit blaming the other.
B. Insolvent banks: fire the management and liquidate the banks in an orderly fashion, following the well-established model: clear the books of impaired assets, and let the market price those assets. Any losses are passed through to the shareholders and bondholders. Once the losses have been taken, recapitalize the banks with new bonds and/or shares, and establish prudent lending guidelines. Prohibit backstopping or bailouts by central banks or Central States.
C. Unsustainable pensions, budgets, deficits, etc.: only spend what is collected in tax revenues, period. Stop living in the past and borrowing from future taxpayers.
What we are all living through today is the failed experiment of trying to run a capitalist economy on no REAL capital. This not only crimps wealth and the overall standard of living, but also elevates the perverse over the rational.