Warning: you might learn something. K. Denninger lecture

Started Sep 17, 2012 | Discussions thread
OP GregGory Veteran Member • Posts: 4,249
free capital is devastating

RossAndrew wrote:

Your video wouldn't come through to me so I am only going on a few things you posted.

Search Youtube for the "kdenninger" channel. It's today's entry.

Every one here from the US seems to think that world or global economy is reliant on the US, it's not.

Yes your a part of the what happens, but we in the rest of the world will survive and some times prosper with out you.

Like the rest of us you are just another cog in the wheel, right now you need a little more oil to run smoothly.
So keep running we will.

I wish it were that simple... The problem is capital and the term 'free markets' which doesn't mean what it suggests.

Spewing trillions in QEs and allocating free capital to the cronies result in devastation in regions with less or higher cost of capital. The corporations simply buyout the competitors, drain them for intangibles, then shut them down, or run them to the ground then shut them down... Simply because the expense doesn't really cost them money (capital cost) and it's much much cheaper to wipe them off the map than to compete with them.

Of course, the world economy will/ would survive without the US economy (after some bumpy years) but in it's current state, the mega-corporations (non-US as well) with access to the free capital are like stampeding buffalo.

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It's easier to fool people than to convince them they have been fooled. - M.T.

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