Saturday, August 21, 2010

Depression Capital scarcity!

"However, Mr Smith said higher wholesale funding costs were now a fixed feature of banking as a result of the global financial crisis."
http://www.theaustralian.com.au/business/anz-chief-hints-at-rate-rise-as-its-profits-rise-37pc/story-fn65t1pq-1225907970674

While justification of excessive profits is to be expected from bankers, the re-capitalization of banking continues, even in Australia.

The point is that capital is scarce: something obvious to anyone who knows history. The massive losses of fictional capital, caused by the inevitable over capacity and lack of investment opportunity, have massive ramifications.

If these are fully understood, the damage inflicted upon the system will be minimized. However, it suits amny to ensure maximum confusion and agrravated disruption in certain areas. This enables "super" investment opportunity, eventually.

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