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The age old reason that economies and companies
fail is massive
debt.
Banks blindly lend money, giddy, foolish
debtors gladly accept the loans.
We go thru a wild, excessive bubble economy, where
resources are misallocated (e.g. the internet 'new' economy), and
then
reality hits, defaults soar, and banks and
economies fail.
Imagine the fallout when the so-called Government
Sponsored Enterprises (Freddie Mac, Fannie Mae, etc...) fail.
They now have over $7 TRILLION in bond obligations,
as they have wildy expanded their mortgage lending.
It WILL make the S&L tax payer screw for $1.6
TRILLION , look like a rounding error.
When, not if, this economy starts laying off people
en-masse, the bankruptcies (already at a record) will mushroom and the banks who
lent them money will fail in droves.
The new economy, ha. How
disgusting. Yet another raw deal for the masses of sheep led by the
foolish sheepherder Greenspun.
If you think Argentina has problems, just
wait til you see the riots and suffering coming for citizens of the good ol'
USA, The worlds largest debtor.
<BLOCKQUOTE
style="BORDER-LEFT: #000000 2px solid; MARGIN-LEFT: 5px; MARGIN-RIGHT: 0px; PADDING-LEFT: 5px; PADDING-RIGHT: 0px">
----- Original Message -----
<DIV
style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black">From:
<A href="mailto:u.stuart-auslander@xxxxxxx";
title=u.stuart-auslander@xxxxxxx>STUART AUSLANDER
To: <A
href="mailto:realtraders@xxxxxxxxxxx";
title=realtraders@xxxxxxxxxxx>realtraders@xxxxxxxxxxx
Sent: Thursday, December 21, 2000 2:46
PM
Subject: Re: [RT] Fw: Another Country on
the Verge of Economic Collapse
The IMF is the cause opf a great deal of poverty by
subsidizing corruption. Stuart
James Taylor wrote:
Angry Argentines March in Streets
> by BILL CORMIER > Associated Press Writer > BUENOS
AIRES, Argentina (AP) -- Some 8,000 workers from Argentina's largest
> labor confederation marched Tuesday to protest against deregulation
of the > social security system, a key part of the government's
austerity package. > Police did not intervene as the peaceful,
banner-waving columns of union > workers massed outside the
Government House, one day after the announcement > of a
$39-billion loan package by international lenders to aid this stagnant
> economy, the second-largest in South America.
> But while Argentina has won breathing space on international markets
thanks > to the bailout loans, the pressure showed no sign of
easing in the streets > Tuesday. Though unions no longer enjoy wide
support in Argentina, economic > problems have brought near-daily
protests, including blockades of key > highway corridors by jobless
workers behind burning tire barricades. > ''If they don't listen to
us, the government is giving a deaf ear to our > demands,'' sai
Rodolfo Daer, leader of the General Workers Confederation > that has
blamed government austerity measures for deepening poverty and >
hardship.
> Speaking on the broad Plaza de Mayo where the throng gathered, Daer
warned > the unions could step up their protests after a year marked
by three general > strikes, one of which left Argentina paralyzed
for a day last month. > ''We are going to return to the Plaza de
Mayo,'' he vowed. ''They will > either listen to our demands or we
will kick them out!'' He did not talk > further about the threat to
the 1-year-old government of President Fernando > De la Rua.
> Bottle rockets crackled overhead and union workers waved
blue-and-white > Argentine flags, along with signs demanding the
government roll back the > deregulation of the social security
system.
> Argentina's social security system has been widely criticized,
however, as > wasteful and riddled with corruption.
> Earlier, De la Rua revamped Argentina's notoriously rigid labor
laws, > negotiated a 5-year spending freeze, cut public workers'
salaries and > enacted tax increases to turn around a languishing
economy. > In exchange for the austerity measures, De la Rua won a
larger-than-expected > loan package from the International
Monetary Fund and other lenders. > ''Argentina is not condemned to
economic stagnation,'' De la Rua said after > he announced the
$39.7 billion loan package on Monday, adding it ''will > eliminate
financial and political uncertainty and restore consumer, business
> and investor confidence.''
> Argentina's economy shrank 3.1 percent last year and is expected to
grow by > a mere 0.2 percent this year, while debt has soared.
And unemployment has > risen to 15 percent earlier this year,
angering many in the street. > Analysts strongly welcomed the loan,
saying its size will grant Argentina a > strong financial shield
against any possible default on its $120 billion > debt.
> ''What's most significant here is the magnitude of the shield. It's
very big > news in that it will allow Argentina refuge from the
pressures of > international markets,'' said Gustavo Canonero of
Deutschebank Argentina. > Luis Salazar joined one drum-banging
protest outside the Labor Minister on > Tuesday that snarled traffic.
He lifted a sign reading ''Christmastime, > Hunger.'' He said he had
been give a public works job last month but was > never paid his
wage, equivalent to $160 a month.
> ''When I went to get my pay they said come back in January,'' he
said. > He said his family is going hungry while the government
arranges billions of > dollars in IMF bailout funds -- what he
called a shield for the government > that leaves workers unprotected
and hungry.
> ''I don't know about this so-called shield package. But the
government is > looking for handouts while they are hurting us with
their economic plan. We > are the victims in all this.'' >
---------- > > Interesting that this story did not make the
evening news. The IMF bailing > out yet another country.
> > The worst is indeed, yet to come. > >
> >
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