5 ms·

... Because it is in the best (short and mid-term) interests of a debt-laden and debt-fuelled state to support those entities which can maximize further debt cr

by drucken 14y ago

... Because it is in the best (short and mid-term) interests of a debt-laden and debt-fuelled state to support those entities which can maximize further debt creation. Banks do not exist in isolation. You could go as far as to say the problem is not so much Too Big to Fail, though that produces its own problems, as Too Interconnected to Fail. These issues have only become worse since 2008.

rayiner 14y ago
> ... Because it is in the best interests of a debt-laden and debt-fuelled state to support those entities which can maximize further debt creation. How exactly?
- damoncali 14y ago
  I think he's saying we need cheap capital right about now, and this quasi-government lending machine is just about the only practical way to do that. But it's not a forever thing, and it's going to break again. Or as a character in Margin Call put it: "If you really want to do this with your life you have to believe that you’re necessary. And you are. People want to live like this in their cars and their big fucking houses that they can’t even pay for? Then you’re necessary. The only reason they all get to continue living like kings is because we’ve got our fingers on the scales in their favor. I take my hand off and the whole world gets really fucking fair really fucking quickly and nobody actually wants that. They say they do but they don’t. They want what we have to give them, but they also want to play innocent and pretend they have no idea where it came from. That’s more hypocrisy than I’m willing to swallow. Fuck them. Fuck normal people."
damoncali 14y ago
You could go as far as to say the problem is not so much Too Big to Fail, though that produces its own problems, as Too Interconnected to Fail. This seems to be poorly understood and critically important. Too big, too connected, and too many people making the same bet at the same time with too much leverage. This will happen again unless something is done. And they went and made it worse...

by drucken 14y ago

rayiner 14y ago

> ... Because it is in the best interests of a debt-laden and debt-fuelled state to support those entities which can maximize further debt creation. How exactly?

damoncali 14y ago
I think he's saying we need cheap capital right about now, and this quasi-government lending machine is just about the only practical way to do that. But it's not a forever thing, and it's going to break again. Or as a character in Margin Call put it: "If you really want to do this with your life you have to believe that you’re necessary. And you are. People want to live like this in their cars and their big fucking houses that they can’t even pay for? Then you’re necessary. The only reason they all get to continue living like kings is because we’ve got our fingers on the scales in their favor. I take my hand off and the whole world gets really fucking fair really fucking quickly and nobody actually wants that. They say they do but they don’t. They want what we have to give them, but they also want to play innocent and pretend they have no idea where it came from. That’s more hypocrisy than I’m willing to swallow. Fuck them. Fuck normal people."

damoncali 14y ago

You could go as far as to say the problem is not so much Too Big to Fail, though that produces its own problems, as Too Interconnected to Fail. This seems to be poorly understood and critically important. Too big, too connected, and too many people making the same bet at the same time with too much leverage. This will happen again unless something is done. And they went and made it worse...