America is Done and Dusted: Vox Day interviews Max Keiser
Vox: What is your take on the recent announcement of the 28.7 percent collapse in existing home sales reported by the National Association of Realtors?
Max: The economy and the markets are broken. There isn’t going to be any increase in demand without jobs or wages. Furthermore, there is the situation where the commercial banks are holding huge mortgage pools that they claim hold values above zero, which is not the case. These huge write-downs mean huge problems for the Fed.
Will Obama’s financial-reform act that passed Congress earlier this year lead to any improvements in the economy?
No, because it doesn’t solve the structural and systemic problems. The problem is that the banking system is fundamentally broken. It broke in 2008. The big stimulus enacted in 2009 threw new credit into the economy, but it was like giving a blood transfusion to a corpse; we saw some movement, but the corpse still isn’t alive. The system broke in 2008, and no one has done anything about it. It’s a pail with no bottom in the pail.