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Tuesday, November 10, 2009

Banks do well... but the USA is in a depression

Again, Samah El-Sahat nails it:
the USA is in a depression and so is the UK.

The awful policies of these weak governments, hostage of the corporations, mean that the banks have been saved from bankruptcy or nationalization and are now "doing well" thanks to taxpayers' money... but that does not translate in any improvement in the real economy.

The quote from Stephen Lewis is:

Depression is a prolonged period of sub-optimal economic activity in which policy measures are ineffective in improving performance on a substantial basis and based on this, then the USA is in depression

More than 10% unemployment and lack of purchasing power (because banks use the public money to patch leaks, not to lend) mean that the common citizen has lost and is still losing a lot. Still I think she's being way too optimistic when she says that the economy will begin recovering by summer 2010. Sincerely: I believe the economy will never again truly recover: capitalism is agonizing precisely because global leaders (and that means US leaders specially) are not brave enough to do the right thing: nationalize the banks and put them to work for the real economy.

How ironical that fear of "socialism" (nationalizing bankrupt banks to serve free market economy) is actually causing the fall or capitalism, right?

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