"the worse is yet to come - the so-called “Alt-A” loans" [View All]

http://counterpunch.com/


The Worst is Yet to Come

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There’s worse to come. Since the subprime meltdown there’s been a lull. But now the so-called “Alt-A” loans, made to supposedly more credit-worthy borrowers and amounting to a trillion dollars, are allegedly about to go down the tubes, carrying banks and insurers with them. And this time Ben Bernanke, chairman the Federal Reserve, has no bail-out strategies left. He can’t lower interest rates to banks below the current 2 per cent, a level partially responsible for oil costing almost $130 a barrel. Round the corner looms hyper-inflation.

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We need an an active radical mass movement, shoving Congress into action. There’s no sign that any of the candidates have advisors at their elbows capable of offering pertinent counsel. Thirty years of vacuous boosterism about the virtues of neo-liberalism and unfettered markets have exacted a fearsome toll on the intellectual capacity of the policy-making elites.
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