Part 3: Credit as a Public Utility: The Solution to the Economic Crisis — The Collapse of the Financial System

Part 3: Credit as a Public Utility: The Solution to the Economic Crisis — The Collapse of the Financial System

A Video in Six Parts Written and Produced by Richard C. Cook ©2009 by Richard C. Cook. All Rights Reserved.

The collapse we are seeing today began in the financial system, not the producing economy. The crisis started with the housing bubble which the Federal Reserve created by cutting interest rates and then brought own by raising them. The trigger of the 2008 bank meltdown was refusal by European banks to purchase any more “toxic” U.S. debt based on mortgages and sold as securities. Now, with the decline in equity values, the burden of debt in our economy has grown even larger. Thus a renewal of bank lending will not solve the problem, while the economic stimulus program of the Obama administration is likewise insufficient to restore economic health.

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Source: Richard C. Cook Blog

Aired: 3/24/09 12:00 AM