I don't think the banking system is the problem (although, of course, the financial models aren't perfect. Read Black Scholes or Cox-Ross-Rubinstein models and you'll have facepalm moments as these are two of the most important price setting and risk management models in today's financial markets, but we ain't got anything better than that).
The real problem is that governments can borrow such huge amounts of money. Just ask governments to pay debts back during one legislative period. So a politician can borrow money when he's elected and pay back before new elections or vice versa. That would prevent politicians from spending lots of money to keep the economy running well and ensure reelction (or, in the case of China, prevent people from questioning the leaders).
But if not even a powerful organisation with a strong interest in the field like the EU can ensure such a policy, how could other countries like Canada or even developing countries do that?
Everynowhere Post time: 2012-6-4 15:42
Could you elaborate on this?
Problem is deregulation of whole banking industry , nobody sane would leave banks to self regulate most vital part of every country bloodline. But that is exactly what Amerikkkkkkkkkka did and not just that but they "forced others globally" to do so, it is magnum crime and theft of money from people never seen on such scale in history.
In my mind deregulation is same as giving bank robbers arms ........... you arm them and they rob the bank and you wonder why did they do it.
Well they did it because you armed them you gave them legal framework that doesn't outlaw bank robbery.
They did it because they can my friend , never underestimate power of GREED....................