Larry Summers Fights for Big Business
July 26th, 2011I’m not going to continue with more blah-blah’s on the debt ceiling. If you haven’t caught up to what is happening with the debt ceiling read some previous posts from last week. What I am going to focus on is the subject of this recent Forbes.com article: Defaulting on debt.
Leaders of this country who are naturally tied with profits from big banks and big businesses are the ones on the TV, radio, and web warning the American people of the “chaos” that would follow if the US does not bailout these unstable businesses, yet again. Larry Summers, one of these noble leaders, made a bold statement, “No big financial institution in any country [should] be allowed to fail.”
I’m left wondering, if we raise the debt ceiling and the turn of events bring us back to this same quandary, what will Bernanke or Summers be saying then? Will they warn us of the devastation and financial apocalypse? He will, but with good reason. The longer these fiat-powered policies stay in place the harder it will be to recover from the inevitable default ahead of us.
I love the analogy of comparing the financial behaviors of the US with a US citizen. If a single person in the US borrowed year after year but could never pay their debt off, would you advise them to keep borrowing so they wouldn’t have to default (ie: go bankrupt)?
So Larry Summers answer that question for me, then explain how it’s any different from the US economy. If you want to support big businesses and government subsidies to them, that is your choice. However people are starting to see that this isn’t so “stealth”. They’re throwing the wool off their eyes and guess who they see.
Posted by:
