The problem as I see it is credit at this point worldwide. Many banks worldwide cannot extend credit to most people because of unpaid credit default swaps. The only way I can presently see to unfreeze credit worldwide is for all governments to say to their banks, "Open credit up or be nationalized! The taxpayers of the respective countries can then own stock in those banks until they become solvent again at which point the preferred stockholders of those banks(those nations taxpayers) should sell their stock to investors worldwide and make a profit to help their countries tax base.
In this way all unpaid credit default swaps become universally unpaid and permanently unrecognized because the banking corporate legal entities no longer exist as banking corporations having been bought by still solvent banks who either were not involved in credit default swaps or having been nationalized with taxpayers of those nations having de facto become preferred stockholders of those nationalized banks. This is the only way I can think of to prevent an all out 1929 style Great Depression unfolding caused this time by leveraged banks instead of leveraged individual investors like the 1929 Great depression.
In these two ways all credit default swaps still unpaid become null and void and average people worldwide don't have to starve and die just because of mistakes made by banking institutions in credit default swaps they could not possibly ever have paid off in the first place. 62 trillion dollars is an impossible figure in presently unpaid credit default swaps worldwide. It is a gordian knot that governments must now take a sword or axe to just like Alexander the Great took his sword to the original Gordian knot.
No comments:
Post a Comment