Wednesday, August 19, 2009

Sending false signals to the real economy, creating false volume on the exchanges, creating false price levels

Banks leveraged up day by day week by week year by year for ten or twenty years. Sending false signals to the real economy, creating false volume on the exchanges, creating false price levels and price points on goods of every class and level. Bush removed the last bulwark against banks leveraging up massively. When the banks went from ten to one to 70 or 97 to one against reserves a shadow banking system, a fake currency was created so to speak, a virtual money, we were all paid in real money, and that pay did not rise very fast, but the prices of all the fake economy, housing prices, luxury items etc, for example a Prada belt costing 950 that costs ten dollars to make and ship and market. Now we reap what the banks sewed.

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