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IPFS News Link • Economy - Economics USA

The Long Hot Summer

Fannie and Freddie are the epitome of the perversion in the financial system. Wait till they are forced onto the US federal budget. You’re going to love the spectacle. Americans will become like Icelanders, who, to satisfy the governments of Britain and Holland, face a bill of $135 per person every single month for the next eight years. Think America is going to like that? Iceland certainly doesn't, and it looks almost certain that tomorrow's referendum on the matter will result in a NO vote. Which will lead to a whole new set of conundrums. The question will emerge again if a country's citizens are responsible for the losses of its banks. So far, Iceland is the one place where the losses would be implicit; in the US, Britain, France, Holland etc., the people still focus on the carrot of having their investments in their banks returned to them one day, and with interest or even profit to boot. Yeah, right. What will they do when they find out that is not ever going to happen? That they will need to pay up like the Icelanders, while the bankers keep getting their bonuses? Think they may go the way Greece is going, where people tried to storm the parliament building today? That we may perhaps see a long hot summer? I know what I’m thinking. The crisis hasn't even started yet. Governments everywhere and at all levels will cut jobs and services. And the people will not continue to let that happen without raising their voices, and their pitchforks. It's inevitable. And that will signal the start of a whole new phase in the crisis, where increasing volatility and violence will make events much more unpredictable.