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Agreed. The cash goes away in the crash. But they might take over the resources left.

I think it was the crash in the railroad sector in Germany (late 19th century) that made the banks huge industrial owners for a long time. And I know that the Krueger crash made the banking family Wallenberg industrial barons of Sweden.

And I do not think that in any of those cases they had a political class willing to give them lots of taxpayer money to buy up the real economy.

A vote for PES is a vote for EPP! A vote for EPP is a vote for PES! Support the coalition, vote EPP-PES in 2009!

by A swedish kind of death on Thu Nov 20th, 2008 at 12:42:04 AM EST
[ Parent ]
Asset deflation means that $ liquidity (Goldman Sachs, Morgan Chase, China, Saudi Arabia, etc.) goes further and further. All of this 'wealth'-transfer via the price inflation of the last few years, plus the current give-aways, has concentrated US$. Now the bursting of the bubble(s) clears the way for massive asset transfer.

paul spencer
by paul spencer (spencerinthegorge AT yahoo DOT com) on Thu Nov 20th, 2008 at 12:34:00 PM EST
[ Parent ]

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