by Charles Hugh Smith
Of Two Minds
LENDING is now the sucker’s game.
Editor’s note: This is a guest post by my friend and colleague Zeus Yiamouyiannis, Ph.D., who has contributed essays to Of Two Minds since 2009.
So this is the program: Devalue or deflate everything owned by the “little people”, buy it up for pennies on the dollars with unlimited free money, and attempt to use this massive financial asymmetry between the super-wealthy and the ordinary to manipulate markets back upward through artificially goosed “demand” backed by empty, cheap-money purchasing power.
Big banks only care about low interest rates so it can be gentleman-“lent” (i.e. given) to big corporations with huge fees attached (a major source of profit). Won’t that make lending impossible and unworkable to mom-and-pop businesses, etc.? Isn’t lending a big part of Big Bank business?