Prof. Hudson demolishes the notion - SOLD by chronically LYING press/media talking heads and "economics" and "Financial" "experts" - to the GROSSLY IGNORANT American public: that the "BAILOUTS" will be PAID BACK by the financial sector, is SHEER STUPIDITY, and Orwellian (or Naziesque) LIE,
for the simple reason that IF the BAD LOANS, upside down mortgages, and TOXIC DEBT __COULD__ be made whole in the future, AT A PROFIT,
then PRIVATE 'investors' WOULD HAVE BEATEN the government to purchasing those bad debts and loans... which have been labelled "TOXIC" precisely because THEY ARE TOXIC - there is NO "profit" to EVER be made from these loans, EXCEPT that the wealthy (and their bankers) have USED the crisis, as an EXCUSE, to DIRECTLY EXTORT American consumers, taxpayers, and the United States treasury.
In short, Stupid Americans - and the INSANELY CORRUPT press, media, economics, and financial departments of EVERY major corporation AND University in America - are ALLOWING the United States government to PAY TRILLIONS of dollars TO THE WEALTHY...
TO CONTRACT the American economy.
We are PAYING the treasonously greedy, selfish, and anti-American debt lords, to WRECK our American economy!
Professor Michael Hudson: THE DEBTS __ARE__ going to be written off...
they've said there are EIGHT TRILLION DOLLARS worth of BAD REAL ESTATE DEBTS... IF the government had just let MARKET CONDITIONS take their place when Lehman Brothers went bankrupt in September [2008] , Lehman mortgages were trading on the market at 22-cents on the dollar.
Now at this point, buyers could have come in and bought the mortgages at 22-cents on the dollar, they could have renegotiated with homeowners and real estate owners and said, "OK, we're going to RENEGOTIATE your debts... at 24-cents or even 25-cents on the dollar, that would have given them a profit.... debts are GOING TO BE MARKED DOWN to the ABILITY TO PAY, or THEY WON'T be paid.
The reason is that... the governments have had a choice: they can either SAVE THE ECONOMY, OR save the CREDITORS who MADE THE BAD LOANS. That's what the governments are doing today... they're NOT saving the economy, THEY'RE SAVING THEIR CONSTITUENTS.
UNTIL the governments SAVE THE ECONOMY, and WRITE DOWN THE BAD DEBTS, there is NOT going to be a recovery.
They [they governments] ARE NOT acting in good faith.
What the governments have done, is TURN FROM a DEMOCRACY TO AN OLIGARCHY... and we're seeing AN OLIGARCHY, and in fact A KLEPTOCRACY here.
[Obama is NOT giving Americans the ECONOMIC "CHANGE" that Americans THOUGHT they were getting in 2008 - Obama has "He's BRINGING BACK the BUSH people and the CLINTON people...BROUGHT BACK THE SAME PEOPLE who gave us the RUSSIAN economic crisis... THE BIGGEST INEQUALITY and KLEPTOCRACY in modern times."]
...The FINANCE sector and the REAL ESTATE and the insurance sector[s] are NOT PART of the REAL ECONOMY of PRODUCTION and CONSUMPTION. The ASSET and WEALTH sector is DIFFERENT from the PRODUCTION sector. You can think of the Financial Sector as being WRAPPED AROUND the real economy. Almost like A PARASITE... that's why it's been called PARASITIC for so long. '
[This is especially true given the "FIAT MONEY" MONEY CREATION power of the 'Federal Reserve' VERY PRIVATE BANKING CARTEL.... which "creates" billions, upon TRILLIONS of "dollars" merely as journal entry in the member banks' balance sheets at the Fed... "money" which the Fed bankers "LEND" to the United States government, AT INTEREST! Those WITH ACCESS TO the "FREE" fiat money from the Fed, are EMPOWERED, like PARASITES or super-predators, to BUY UP the REAL, working, valuable assets in the economy. NO ONE can COMPETE on a level playing field, with those mega-bankers who have access to the BILIONS upon TRILLIONS of "free" FIAT DOLLARS floating around in the electronic registers of the mega-banks, which is why LEVERAGED BUY OUT funds like KKR and Goddamn-Sachs, can come up with BILLIONS of dollars to buy companies... which they often proceed to DISMANTLE, and usually proceed to LOOT the PENSION FUNDS of.]
