Answer to a Question

I was asked a question by email that I think I’ll blog for whoever’s interested:

I have a question [] – this seems to be affecting everyone, but surely there must be somebody out there doing well out of all this? Who is it?

Group of people A (the people that lend to banks) lent money to group of people B (banks) to foolishly invest.

Group B squander group A’s money by lending it to group C (people with stupid ideas for spending money). Instead of letting group A take responsibility for the foolish use of their money, a lot of noise is made about the terrible consequences if group B go bankrupt. (The terrible consequences being that group A wouldn’t get their money back). So you make a lot of noise about how the only way to save the economy is for the government (group D) to borrow money from international bond investors (group E) which will be paid back by taxpayers (group F). They then give this money to group B, who in turn give it back to group A (not before paying their own salaries and bonuses of course).

So at the end of the day, group A get every penny they were owed by group B (with interest of course) from group F. They make as much money as they would have done if their money had been wisely invested in enterprises that led to a new golden age for humanity, instead of the shitstorm we’re facing. As you can imagine, it doesn’t exactly incentivise them to wisely invest in future, does it?


One response to “Answer to a Question

  1. What a great question!

    Can anyone fill in the missing section from, ‘I have a question [] …’?

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