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Some people need to fail in this historic downtrend... those who got richer on the uptrend.
Law of physics and the US Fed wants to keep them up?
Protect the deposit holders and let the rest go as someone with some sense will pickup the good assets and the bad ones will disappear.
There is a solution to this and that is protect the good banks and the others fail with deposit security as the priority. Not all of citigroup is bad but the bits that are bad need to fail as otherwise the rest of the financial sector will stagnate for another decade and thats not good for rest of the people who havent been overleveraged. They should now be able to borrow at reasonable rates and buy assets at fair value.
Otherwise GOLD will be the only asset that cannot depreciate and everything around it will be worth nothing.
OMG! this is so simple, nearly every poster I have read on this forum understands this concept except for the US Fed and Government.
