The Slow Roast Economy: Bank Downgrades Merely A Step Along A Path
Because half the battle in the consolidation of an economy is mental, the heightening power consolidation to which we have bore witness this century has been incremental, and remains this way. According to CNN:
NEW YORK (CNNMoney) — Investors breathed a collective sigh of relief Friday that the downgrades of some of the world’s largest banks wasn’t as bad as it might have been.
What CNN is implying here is that the downgrade could have been much worse when considering the way things are. That is, there are grounds for future downgrades. What Moody’s downgrade demonstrates is a furthering of an incremental policy by world-shepherding organizations to dismantle and remake the world economy, slowly. Instead of downgrade the banks violently, let rumors swirl leading into a soft downgrade, so as to not cause a panic. Continue letting people become familiar with the path down which they are being led so that nothing comes as a surprise and subconsciously it seems that crises are just the way it is.
The Moody’s downgrade was not good news for the financials, but they are in collapse and, as soon as it is convenient to dissolve and form another manifestation of a world finance, they will. Bank stocks fell between 1.7% and 3.9% before the downgrades before rallying Friday. The message is everything will be okay. The financial collapse caused metals to soften considerably, in big one day drops. Counter-intuitively, financial crisis depresses the metals, as does positive financial news.
The cost of doing business for the financials will now rise, and this cost will be passed down to the taxpayers of the world economy. Perhaps, it already has, as BRIC nations dedicate nearly $100 billion to the IMF. Is this setting the grounds for a BRIC bailout of western economies, like Euro-Anglo-American transnational banks?
Moody’s euphemized that banks still have the power to “rock” global markets, when really the more fitting metaphor is “bomb” global markets.
It’s a slow roast economy – and just like in cooking, all the slow cooked, savory ingredients flow to the top.