So in other words people will be doomed to pay back their debts
Sort of a debt slavery system considering that money is just created in modern economics
That said it will be interesting to see what happens the next economic downturn and how many people complain about it when the economy stays down for a long duration of time.
Agreed and this is just the beginning. In most states if you lose your home or car and the mortgage the lender can go after you for any remaining outstanding debt. We are sure to see wage garnishments in this area too. Garnishing the wages of someone who just lost their home is no different really.
It completely baffles me how otherwise intelligent conservative people cheer for this this gutting of the working Joe. Where are all these newly destitute formerly middle class folks going to turn? They will of course turn to whomever promises to raise taxes on the "rich" and help them. This economic impoverishment drives the growth of socialism and government like like fuel for a wildfire.
Finance Part III: Divide, Conquer, EnslaveThe nine most terrifying words in the English language are "I'm from the government, and I'm here to help."
Responding to public demand government steps in and tries to halt finance induced crashes. However, government does not simply print money to mitigate the cyclical monetary crunch. True money printing would harm vested financial interests and is taboo. Instead government enters the arena meekly as the
sucker borrower of last resort. Once government is ensnared the triumph of finance is complete. Government debt is paid via taxation and taxation primarily targets the upper classes. Thus with the capture of government finance gains the ability to siphon wealth from the debt free productive class.
A time honored strategy in war is divide and conquer. It is easier to subjugate a people who are fighting among themselves. Finance and fractional reserve divides the public into two competing blocks of victims. The poor as we have seen become ever poorer with each "business cycle". They look at the relatively well off and cry Thief! The entrepreneurs and productive increasingly suffer under ever higher tax burdens. They point to government and the welfare recipients and cry Thief!
Government does not handle this conflict well. Unable to decide between competing citizen demands it waffles. It spends to support the poor but does not raise taxes. The result is ever larger government debt. Each attempt by government to buffer the finance induced downturn simply delays the liquidation of middle classes assets by transferring that liability to the government and eventually to the upper classes via increased taxation. Bailouts are thus a transfer wealth from the productive upper classes to well-connected financial interests. Finance uses the business cycle to harvest the poor, and bailouts to harvest the rich.
The long-term costs of all this are borne out by the majority of the ill-informed public who are too busy fighting over a myriad useless conservative versus liberal disputes to address the root cause of their suffering. Meanwhile government in its misguided attempt to "help" becomes so indebted that eventually it can no longer service its loans.
Impressive summary on Capital One. I had no idea their CEO was so deeply enmeshed in the FED.