Thursday, November 03, 2011

When "capitalism" goes Wrong

The point about capitalism and commercialism of late, is that they have really preached the extension of business rather than the preservation of belongings; and have at best tried to disguise the pickpocket with some of the virtues of the pirate.          The Outline of Sanity - GK Chesterton, 1927/
Ill gained profit IS wrong. Regardless of whether or not it is illegal. When banks borrow money from the private/public monstrosity that is the fed for 0% , then park it back at the fed for a few basis points of interest - this is profit wrongly achieved. It is wrong because the fed with it's gov't sanction chooses the winners and the losers. (Why not let you/me borrow $500 million at zero and park it for 10 basis points...we "make" a cool $500,000) This takes access, not brains...and certainly not hard work. When banks take our deposits, "invest it" at amounts that are 10, 20, 50 or 100 times the amount of their total deposits this is wrong. When they lose on those bets and, with threats of our financial demise, stampede to public trough to bail their over-leveraging - this is wrong. When they knowingly buy (then sell) our crappy mortgages and then buy policies that pay out upon said mortgages demise - this is wrong.

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