More money wasted to save a sick system

… instead of changing it

Watch these videos:

Bailout costs $8.5 trillion, 8.54 min;

Chomsky says on the economy, 11.00 min;

The financial crisis and the real economy, 8.50.

More:

Kelly McParland says: … It’s not all free money. A great deal consists of loans, guarantees, backup facilities, equity in troubled entities or mortgage securities which could one day produce a profit. But it’s risk, and it’s massive. And it’s apparently not enough … (full text).

Nomi Prins says: … All of that is coming back to us, because if more debt needs to be raised, that means that the US as a country, if it wants to stay solvent with respect to other nations who also own our debts, has to make those interest payments.  The more debt we have, the more interest payment we have to make, and therefore the more money comes off of the federal budget before anything else happens.  Already, it’s the third largest line item in the budget, the interest on our debt.  It will become bigger, and it is necessary to pay, in order to maintain our national solvency.  In the end, even though the numbers are really astronomical, in the trillions to date, the simple infusions of capital, the lending of it in return for toxic assets, will not in itself work, unless it’s done to the amount of the potential loss that is in the system which we’re all unclear on because a lot of the leverage on a lot of these assets was not fully disclosed and is not still transparent and is not still being announced by various financial institutions … (full text).

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