I have been following developments in the world financial system for some time. Around 2005, I could see the systemic problems coming that eventually manifested in 2008. It was no mystery actually, provided you had the will and dedication to sift through blogs, websites and the opinions of those 'off the beaten path' from consensus economic thought. The system (the derivatives market in particular) and debt were unstable and unsustainable. It was only a matter of time before things came crashing down under the weight of debt, greed, corruption and lies. But the system did not collapse, largely thanks to the Federal Reserve recycling debt by buying up United States Treasury notes through Quantitative Easing.
The Federal Reserve, under the auspices of protecting the financial system, came to the rescue of the 'too big to fail' banks and other institutions deemed more worthy of saving than you and me. Well, that isn't exactly the case, since a few programs, such as extended unemployment, were enacted and extended to sustain the downtrodden and newly unemployed on one hand, and on the other, the big banks and powerbrokers on Wall Street were saved and enriched. Many other programs that were supposed to help those meeting mortgage payment difficulties by reducing and reorganizing the mortgages fizzled because they gave no real advantage to the banks, and yet, at the same time, banks unloaded many troubled loans onto the backs of the taxpayers by selling them at top prices to what are effectively government-sponsored enterprises like Fannie Mae and Freddie Mac, which were subsequently taken over outright by the United States government.
Overall, those at the lower end of the socioeconomic ladder have lost out and the big banks have been left to continue paying the enormous salaries and reaping the fat profits associated with the 1%, despite balance sheets that are contrived and supported
by edict of the United States government. The system failed, but not completely. It was 'saved', and don't you forget it. Main Street in the United States is
slowly being gutted at the same time that the 'too big to fail' banks are been propped up and protected. I'll be honest though. The economic system is NOW a
complete fraud and façade, thrown up to maintain the status quo. One recent example of this that came to light in the mainstream was the publication of the
monthly US employment report.
Comment: A veritable war of terror sponsored by the Obama administration. And people still think he is one of the 'good guys'.