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Why Are the Central Banks Flooding the Financial System with More Credit? The problem is not a lack of liquidity. It is financial institution bankruptcy, "massive organ failure" as described by Alkaline. Does the action of the Central Banks do any more that further impoverish the citizens of their respective countries?
Its a fascinating problem, though, in that these financial instruments are not clearly "blue sky." There was a story to be made that they were not worthless, although they are perceived as such now. The whole experiment might have been okay if the derivatives had been properly and incrementally tested, like a new drug, or a new website, for that matter.
If this country survives, the regulation should include a financial equivalent of the FDA--an entiity that provides oversight of these instruments and requires the companies introducing them to prove the strength of their value.
