Monday, January 11, 2016

Ditch The Myth

The myth persists that the financial wizards of Wall Street were unaware of the danger of the financial instruments they were buying and selling, were too stupid to see the bubble of 2007 and were unable to predict the crash of 2008. This is a fallacy. They knew exactly what they were doing. They knew precisely the damage it would cause to the working class. They didn't care.

They also knew precisely how the government would react, if for no other reason that that they control the government. They knew that, while millions would suffer severe loss of wealth, they themselves would walk away from the wreckage with their wealth not only intact but enhanced. That was their plan, and they pulled it off.

They are doing it again, with a stock market overvalued by a factor of at least six times, much of the overvalue caused by stock buybacks.

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