Dubai's Debt Implosion Is Right On Time
Well, that couldn't have been any more timely. After we took a few more timely jabs at the Middle East fiefdoms over the last few days, Dubai obliges by asking for a debt reprieve for six months. Dubai's move raised concerns about debt across the Gulf Region. Prices to insure debt from Abu Dhabi, Qatar, Saudi Arabia and Bahrain all rose by double-digit percentages Thursday. Ya think? What fantasy planet have the Wall Street carnival barkers been living on as they again drove credit spreads to levels as thin as before this crisis? When the same monkeys that created the crisis are still running the zoo, we can expect that same monkey-behavior .......
Right after the banksters honor this request, I want the same favor. Except rather than a reprieve, I would prefer that my debt be put onto the back of the American taxpayers. You know. Just like the banksters. You all don't mind bailing me out, now do you? I can assure you that I would be much more grateful than Wall Street was. I would actually thank you. Something the sociopaths on Wall Street didn't seem capable of.
Debt repudiation seems to have a viral effect, eh? In other words, what we are witnessing is the breakdown of the rule of law. The government provided the precedence as we highlighted in our finance industry control fraud post. It's consequences will likely be substantially greater now that our government has failed to prosecute fraud or enforce the rule of law. Who really knows where this dynamic will end? As Americans see their burdens become greater through higher taxes, higher fees and higher costs across the board because of fraud and the lack of enforcement of the rule of law for a handful of connected companies or individuals, we could easily see a wholesale crisis where society chooses to apply the same arbitrary laws to their own situation. Newton's Third Law - for every action there is an opposite and equal reaction.
Aren't you glad Wall Street, American mega banks and American mega corporations have invested all of the capital you provided them to invest in these crackpot countries? Ummm ..... do you think we might be witnessing a little of "once bitten, twice shy" on a global macro level?
Right after the banksters honor this request, I want the same favor. Except rather than a reprieve, I would prefer that my debt be put onto the back of the American taxpayers. You know. Just like the banksters. You all don't mind bailing me out, now do you? I can assure you that I would be much more grateful than Wall Street was. I would actually thank you. Something the sociopaths on Wall Street didn't seem capable of.
Debt repudiation seems to have a viral effect, eh? In other words, what we are witnessing is the breakdown of the rule of law. The government provided the precedence as we highlighted in our finance industry control fraud post. It's consequences will likely be substantially greater now that our government has failed to prosecute fraud or enforce the rule of law. Who really knows where this dynamic will end? As Americans see their burdens become greater through higher taxes, higher fees and higher costs across the board because of fraud and the lack of enforcement of the rule of law for a handful of connected companies or individuals, we could easily see a wholesale crisis where society chooses to apply the same arbitrary laws to their own situation. Newton's Third Law - for every action there is an opposite and equal reaction.
Aren't you glad Wall Street, American mega banks and American mega corporations have invested all of the capital you provided them to invest in these crackpot countries? Ummm ..... do you think we might be witnessing a little of "once bitten, twice shy" on a global macro level?
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