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Wednesday, October 13, 2010

Carnage of Enormous Scale in wake of Wall Street Fraud

In pictures...so many people have no idea how big a hole Wall Street drove into the real economy.

This graph shows what happens when the intermediaries of capital, aka Wall Street, end up being an object in themselves, instead of fulfilling their roll as efficient allocators of capital, of scarce resources.

And then the lobbyists get to work to prevent the rapid clearing of markets, specifically the mortgage markets, by holding up emergency measures in the Senate that would have quickly unwound the stupidity, the stupid lending, by giving bankruptcy courts the authority they need.

So the "healing" drags on and on...a "lost" decade.

And, now, in the aftermath, this graph won't change without a radical wealth transfer, "rich" to "poor"; and there is no way American politics is going to support that, given the impact of Citizens United and much else, besides, including religious "reconstructionism" sweeping the country as a "solution" (ha!). Progressivism is weak in America: the Dems couldn't even muster a vote on re-setting the tax codes, most likely because too many in their caucus are "bought off".


NYT Story