EASY WAY TO UNDERSTAND THE CREDIT CRISIS – It could now be argued that society is made up of three distinct groups, the liars, the greedy and the suckers. The liars, being our politicians who convinced or rather forced the taxpayer into hand over billions to the greedy; commonly known as bankers.
Bankers could also be labelled as greedy fools for within the lust for great wealth they overlooked the most fundamental basics of lending for profit; that being to never allow anyone to accumulate debt beyond their means to repay the interest and principle.
The last group is of course, the suckers, or as politicians and bankers like to refer to them, the taxpayer.
Regardless of how incompetent or greedy the bankers get they know they hold sufficient government debt, known as Government Bonds, to be able to force the Government to effectively steal taxpayer’s money in order to bail them out.
Look closely at the Cyprus financial crisis last year and note how the European Central Bank (ECB) thought that it was a good idea to close the banks and effectively steal savers’ money in order to obtain funds to go towards the bailout funds the ECB would provide.
As we move into 2014 we are far from climbing out of the financial crisis of 2008 and in fact simply looking at the way banks are currently operate, how Government’s continue to accumulate more debt and how people continue to spend on their credit cards indicates that another, greater crisis is on the way. Many experts believe the next wave of financial crisis will result in the collapse of the European Union; this could of course occur within Europe as many member states go bankrupt or will come from the financial collapse from the U.S.