Dodd highlights rising public anger at credit crunch, bailout
Paul Joseph Watson
Monday, October 27, 2008
Senator Christopher Dodd has shockingly predicted that public anger at banks’ refusal to disperse credit could lead to a “revolution,” while another analyst says government intervention could mean banks are cut out of the loop entirely.
“If it turns out that they are hoarding, you’ll have a revolution on your hands. People will be so livid and furious that their tax money is going to line their pockets instead of doing the right thing. There will be hell to pay,” Dodd told the New York Times this weekend.
Meanwhile, Chief Investment Strategist Sean Corrigan from Diapason Commodities Management told CNBC this morning that banks may have to be “cut out of the loop” if the freeze in credit markets continues, forcing governments to act as the lender of last resort.
(ARTICLE CONTINUES BELOW)
Corrigan said that banking was, “A business which is desperately in need of a cull in the world but nobody wants a bank to go down for fear that they bring all banks down, so we’ve locked ourselves into this position.”
Saying that the big mistake by central banks was the move not to save banking, but to save individual banks, Corrigan stated, “Ultimately yes, if the banks don’t restart, the authorities will have to start acting as the monetizers of last resort, they’ll have to start dispensing commercial credit between non-financial institutions and cut banking out of the loop if necessary.”
As the George Washington Blog documents, the banks have openly stated that they will keep hoarding cash no matter how much money the feds give them.
This article was posted: Monday, October 27, 2008 at 5:55 am