Wednesday, October 2, 2024

The “Financial Coup” That Seized America

In the wake of the 2008 Financial Crisis, former chief economist of the IMF Simon Johnson warned that the same dysfunctional policies he saw in his basketcase banana republics had taken hold in the United States.

Our Bankrupt Financial System In recent videos I've talked about the trillion of distress in the financial system, the common thread being that you, the taxpayer, will be bailing them all out - we saw this in the 2023 bank bailouts, pre-paid in the dark.

The Quiet Coup Johnson lays out his numbers: from 1973 to 1985, America's financial sector never earned more than 16% of the domestic corporate product.

Ben Bernanke got $250,000 for a single speech at a financial conference.

Johnson sums it up: the American financial system is "Desperately ill," kept alive only by an endless series of bailouts, like the ones that headed off bank failures last year.

Meaning unless Washington reins in the banks, we're in store for more existential financial crises, more bailouts and national debt, and more running out the clock to financial catastrophe.

We missed our chance in 2008, and in all likelihood, it will take an even bigger crisis before politicians turn on their lobbyists and the financial coup that has seized our republic. 

https://brownstone.org/articles/the-financial-coup-that-seized-america/

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