Panic on Wallstreet and beyond.
The fundamentals of capitalism are breaking down
former labour MP in England this morning on BBC worldwide.
The US government is as of this evening in official panic mode. Not that they will admit to it, just watch for their statements later tonight. The gravity of the issue is perhaps best illustrated by the fact that the politicians' staff members were ordered out of the meeting. That staff, of course, ironically (or should we say cynically) form the one and only barrier between their leaders and utter ignorance on what is happening.
At the Automatic Earth, two principles have always been unshakable and unmoveable.
The first is that all the virtual money, the casino toilet paper, created in the past two decades through the introduction of the "innovative and creative" financial -debt- instruments so lauded by the capo di tutti capi, Alan Greenspan, will have to disappear, never to be seen again.
The second is that this will lead to the mother-fcuker of all deflations. The only possible outcome left in its wake will be individual and societal debt burdens so high that the Great Depression and the wars it engendered will seem and feel like a sun-drenched dreamy all-the-icecream-you-can-eat kindergarten birthday bash in Disneyland.
Official prediction is btw that Citibank/Citigroup is next - that would be the first bank where you then can see lines of people demanding their money - but no we are not in a financial crises at all - all is totally fine, you know its just a ripple and we are already on the upturn and the worst has been over since 12 month - you got to love politicians their distorted reality and the mass media amplifying and sucking in some poor sucker into their bubbled up view on the world - the elite is so out of touch that they do not even see their own house falling. If I would have time I would love to dig out all the comments from big Financial Institution, Politicians and MassMedia that said in the last 3 month that we are over the worst and the future looks rosy - I guess I would find hundrets of those, meanwhile there are tons and tons of bloggers activists etc that have been saying all along that this gets even more messy - you know ordinary people without business law politics study - people with common sense. Anyway back to work.