Quote:
Originally Posted by pigman
Owners of capital will stimulate the working class to buy more and more expensive goods, houses and technology, pushing them to take more and more expensive credits, until their debt becomes unbearable. The unpaid debt will lead to bankruptcy of banks which will have to be nationalized and the State will have to take the road which will eventually lead to communism.
Karl Marx, Das Kapital, 1867
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To expand and modernize that a bit, I think the government is willingly and deliberately supporting the high-risk/high-yield policies of greed that current capital owning entities are inundating the sheeple with. The end result is of course that like Marx said, the people will accumulate debt until it is unbearable.
The delivery method for this wears the face of "economic stimulation". Because even though depressions don't just disappear overnight, you're seeing a million different marketing strategies to promote continued, unnecessary expenditure of credit - not capital - by already heavily indebted consumers.
So by bailing out institutions who have already completed the arc of their irresponsible fiscal policy, and should logically have to reap what they've sown, the bailouts allow for dramatic and disastrous exacerbation of the initial magnitude of their effects. This is what I think is the real coup-de-grace that will herald the overt and complete nationalization, of all "public" capital holding (not for long) entities.
Do you think I'm missing something, or does this sound about right?