--- In [email protected], "Cory Nott" <[EMAIL PROTECTED]> wrote: > > You forget that Brazil was once a superpower like the United States is now, > where the average person had access to more wealth than an average person > anywhere else in the world and they had a largely unregulated free market > economy. But, like the United States has done now, they relaxed regulations > on investments banking and the bankers went hog wild with subprime loans to > undeserving borrowers. Now the whole country of a Brazil is a mess, and we > are soon to follow. That's why the comparison is valid.
Actually, CENTRAL BANKING and FIAT MONEY are at the root of the problems you are describing. Easily manipulated fiat money is mass-counterfeited by central banks so that those who normally wouldn't get loans can now get them. The central banks then artificially lower the interest rate so that it is even EASIER for "undeserving borrowers" to get loans. If bankers are going "hog wild" then it is because the government has set up a system in which they can. Market forces would normally keep such things in check, but Government intervention distorts and weakens those forces, leading to the problems we have today. ---Sasan
