The Federal Reserve exists to protect the 1%

The banksters and Fed are of course gobsmacked by what happened asying, who could have predicted it?

3 big reasons the Fed got it wrong

  • Misunderstanding of the housing boom
  • A lack of analysis of the rapid growth of new forms of mortgage finance
  • Insufficient weight given to the powerful adverse feedback loops between the financial system and the real economy.

All true but the real reason the Fed somehow failed to understand the obvious is that is primarily exists to protect the financial interests of a tiny few. There are plenty of reputable financial blogs that were correctly explaining the financial crisis four years ago. But somehow the Fed just couldn’t quite bring itself to understand the obvious, something which clearly demonstrates how compromised, corrupted, and incompetent they are.

The Fed’s primary goal is to insure that big financial interests who knowing sold garbage securities and made toxic loans must never ever take a writedown on this slop. Instead countries must pay for the greed and criminality of the few.

Business Insider states the fair and obvious solution.

It’s called “bankruptcy.”

The borrower says, “I can’t pay you back” and then the borrower surrenders his or her claim on any assets that he or she still possesses.

The lender, meanwhile, sifts through those assets and recoups what he or she can.

That we are now facing bankruptcies at the level of countries clearly shows the venality of the Fed and Eurozone financial ministers. They don’t care who gets hurt as long as they do not lose a penny of profit.