gemonk21

Tim Geithner vs. The American Banking Elite

"The answer must be by splitting this powerful interest group into competing factions, and taking them on one by one. Can this be done? Definitely, yes. In particular, bank recapitalization - if implemented right - can use private equity interests against the powerful large bank insiders. Then you need to force the new private equity owners of banks to break them up so they are no longer too big to fail. And then… there is always more to do to contain the power of a lobby that is boosted by any boom and which, the more it succeeds, the more likely it is to ruin us all."

An interesting concept, but how does it work? The banks are recapitalizing using fiat printed by the fed quite literally out of thin air.

Does it make sense mathematically that the failure of 5% or so of the mortgages in America should lead to a global meltdown?