The Financial Crisis Nearly Took the Whole System Down

Ive never been a follower in the financial healing that were allegedly in. I assume that the powers-that-be are drawing out all the stops to aim to hold it with each other. I return to the NASDAQ break which I believe should have triggered a significant waterfall of stock worths to remain low for rather a while. As well as then certainly the powers-that-be used whatever techniques were offered to them to attempt to stimulate points. Back in those days, it was cash-for-clunkers, the new buyer tax credit histories and certainly the entire zero-interest-rate point. Then we had TARP and TALF in 07 and 08.

We had conservatorships of Fannie as well as Freddie, as well as AIG, which Im sure nobody truly comprehends. Its all attempt to maintain it together. I think we found out in 07 as well as 08, when Lehman dropped, that the powers-that-be cant permit a liquidation where a financial company has to market something, which regrettably is exactly what took place to Lehman and also nearly took the entire system down.So succeeding to that, weve never had a liquidation. Even, for instance, in the Cypriot financial institution dilemma, the Cypriot financial institutions never had to sell anything due to the fact that they simply extracted from the depositors. It resembles the Greek circumstance that we have today; the Greek financial institutions don't have to sell anything considering that the ECB just is available in as well as provides the Emergency Lending Authority. I assume if you allowed the marketplace to operate as it should function, where values are established by the market, we would certainly see this type of domino effect where the Greek financial institutions would need to sell their financings off and afterwards the Greek stock exchange would collapse, the bond market would certainly fall down and after that people [in countries] around them would begin thinking, Well, that might occur to me.

- Source, Eric Sprott by means of