Nothing was fixed from the 2007-2008 global financial meltdown. The under regulated financial weapons of mass destruction that allowed corporate banks to create outrageous bonuses were barely curtailed, the bastards managed to get huge bail outs from the taxpayers.
All we did to respond to the 2007-8 crash was to kick the can down road. America printed money, China sunk a half a trillion into inane infrastructure and everyone else held up austerity as a solution.
You can only kick that can down the road as long as you have road. We have run out of road.
Check these numbers out..
When it comes to bailing out greedy banks, our leaders couldn’t plow enough taxpayer cash into them, what the Greeks are needing is modest in comparison.
Greece and the Chinese meltdown are connected to the global financial meltdown. Goldman Sachs helped the Greeks hide their debt while betting against their economy and the Chinese have had major issues with their banking system once they responded to the crisis in America. Corporate banks caused this crisis, they are the ones needing the blame when the shit storm breaks loose.
This is a battle between us and the wealthy elite banks.
Have you checked those numbers? They seem very dubious. They add up to the entirety of the US GDP.
Not to diminish your point, as what you are saying is spot on, whether the numbers there are right or wrong.
Actually, unattributed figures do diminish the post.
Hopefully Martyn will edit the and amend the omission.
“……China sunk a third of a billion into inane infrastructure…..”
I agree, your figures are way off the mark, Mr Bradbury. Take a trip to China Martyn and see for yourself.
Most of the money poured into the massive overbuild of apartments, for example, was poured in by private investors, not the Government. It is they who stand to lose money, not the Chinese Government.
As for the “sharemarket meltdown”, most Chinese investors, rightly or wrongly, regard it as a market correction, not a meltdown.
We’ll see!
The Chinese SSE Composite has lost 24% of it’s value since 1st May.
That’s a crash by any standards.
You are completely right – I said China had sunk a third of a trillion into their response to the GFC – I was wrong – the amount was actually half a trillion
http://www.thehindu.com/todays-paper/tp-international/china-unveils-570billion-stimulus-package/article1373990.ece
And you know the US is trillon dollars in debt. Their stock market stopped trading yesterday not because of a computer glitch but to stop stocks being traded. US has the highest debt per GDP in the whole world. They only remain bouyant because they print money AND the US dollar is the reserve currency/petro dollar. Wake up people we’re in for a BIG crash. All alternative commentators, except mainstream commentators, have been warning about it. Coupled with this is the situation in the Ukraine. What the US has done there is despicable. Provoking Russia. You don’t provoke the bear.
Don’t talk about China – the US is in it up to their eyeballs. They’ve managed so far to keep their heads above water but they are going to sink one day. Many alternative, not the big bank buddies, have predicted 2015 – 2016 for the big crash. But we just want to bury our heads in the sand and regurgitate the Western MSM propaganda. THE USA IS NOT HUNKY DORRY. hold on tight people.
There’s a reason China’s collapse is having less global impact than an equivalent loss of share value would in Europe or the US – the Chinese market is substantially domestic investors, so it doesn’t immediately precipitate defaults through neighbouring economies. It will be felt abroad as a downturn rather than a crash.
It’s going to hit us because China is a big buyer of our goods. It won’t affect the US because they will just find another cheap place to put together their electronics, with India or Malaysia looking like good options.
Yes, it is about the sentiment, the mood of people, and having now tens of millions of Chinese stock investors lose so much, there will be a strong move for so many, to “save”, to kind of hold onto the rest of their money and incomes, rather than spend, which will mean that they will have more slowing consumption, and less imports, which means less milk powder, baby formula and other stuff from here, there is NO doubt about it.
This is a good point. I realised a couple of years ago that the 2008 losses have never actually been “realised”. In other words, no one has yet taken the hit for them. The debt has simply been kicked around from point to another.
But it’s not the size of Greece’s debt. The worry is even if the debt is forgiven they will up to their eyeballs in debt again in another 5 years.
With regards to the bank bailouts I can’t see the relevancy. It was a simply a case of what caused the less harm – let the bank go under, or bailout.
As for China I can’t see the connection to the events of 2007/8. What I see is you can’t run a Muldoonist economy forever where you prop up inefficient businesses without reality hitting. Eventually inefficient businesses start outnumbering efficient businesses and the money starts running out. China has for the last 20 or so years been exploiting cheap labour in the form of a massive working age peasant population – and that cheap labour source is starting to run out.
Only a debt cut and time for reforms and a chance to get Greece back on its feet will work. It seems some in Europe are scared of the reality, that major banks, and also governments that continued lending, will NOT see their money again, and have to make sacrifices and adjustments.
The GFC has not really been sufficiently resolved, it now shows, and it starts with the weakest, to fall to their knees, more will follow, the whole system will eventually collapse, which is nothing to celebrate, as we will ALL suffer, that is more hardship and austerity.
China is also vulnerable, as they let loose speculation and “investments” on borrowed, dodgy money (not government controlled credit on the black market), that the government can there now not control anymore, which leads to massive stock exchange losses, for an adjustment.
There have been bubbles growing in that country, some saw it, most liked to ignore it, the government may yet manage it, but it will again mean austerity, affecting especially the poorest.
Austerity is a term of sorts, but it is at times the inevitable result, but the fact is, it is dished out unfairly, and we see it again and again.
Yes according to all the overseas channels I am watching that have good in depth coverage of Greece financial woes seem to suggest that they have learned their errors hedging bets with dodgy borrowed Goldman Sachs for Ponzi money making schemes the Greek Government now has a plan to again begin to build a resilient local economy built on self reliance and developing local small industries to become self sufficient as their economy iss to small to rely on import export modelling.
Hell that looked like our country in the 1960’s when we were riding high also.
Maybe we again will learn ton follow Greece down the right road we hope if Greece makes go of it.
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