Banks in bankruptcy but rich bankers, Theory of the Coercive Deficit

The people that know the politics are aware that there are some activities that any government and any congress can not deny to support.
The bankers, for example, know that any government can let the savers lose their money because if this happen all the financial system is in danger. When a bank fails, usually the small clients recover their money through the governments insurance.
The bankers know that they can do anything with the client’s money because in the countries majority the governments do not have capacity for controlling their activities. They are aware too of the most important issue: that the governments will restore the money to the savers. They know that the governments and congress do not have other option but to pay to the savers because if they do not pay there is a serious risk of social disorders and economic chaos. This is known as the Theory of the Coercive Deficit.
For that reason the bankers use the savers money as they want. When a financial crisis occurs, generally you find banks in bankruptcy but rich bankers. Who fail is the bank no the bankers. Usually the bankers have their money secure in other kind of investments. The problem is for the savers that have to wait that the government restore their money.
In some countries this kind of conduct is legally punished but usually these persons ---that have enough money for living in other countries--- escape to other nations or financial paradises. In other countries ---instead of punishing these actions--- the governments give more money to the bankers.
The financial activity is something essential for any economy. But it is necessary to guarantee the money of the savers. And this implies more official control on the banks, especially over their investments.
Gift money to rich bankers is a sin. As too is a sin to deny help to the poor that struggle for keeping their homes.

Was the 2008 recession provoked with a deliberate objective?

Who are the main beneficiaries of the recession?
The bankers are the beneficiaries. They have found an excellent way for obtaining gratis public funds.
The rest of the society will pay the gift given to the bankers.
In the United States and in Europe will be the tax-payers who will assume the charge.
The bankers know that usually the governments pay the account when they say that do not have money.
In some countries the governments take the property of the banks when the banks fail. In other countries the governments give the bailout without conditions.
But the bankers ever win, even after nationalization, because usually some time later the institutions come back to their hands or to the hands of their partners. There are too many examples of this type world-wide.
In the current crisis the financial sector has obtained an unbelievable amount of resources that will help to increase the banker’s wealth.
Moreover, the crisis brought other consequences: the most important is the oil price fall.
The leaders of the financial sector knew anticipated the principal consequences of the crisis and, perhaps, they thought that obtaining the financial assistance of the government, by one hand, and obtaining the oil price fall, by the other, are enough reasons to justify the recession. Perhaps some leaders of the governments of other nations have thought the same. The result has been the 2008 recession.
This is a scenario that deserve not be ruled out.

Why helping the car industry? Because the solution is in the real economy and not in the financial economy

Those that have created the crisis can not resolve the problem. As in the Great Depression of the thirty years, the financial sector provoked the current recession. For that reason the solution of the crisis is not in the financial economy.
Again the world society must learn that the true wealth is in the material production and not in the illusion of the money.
The money is to the economic body the same that the blood to the human body but the core of the economic body is the material production, the agriculture, the petroleum and mining, the industry and some key services.
The money per ser does not create wealth nor well-being. The money is only a mean, a way that let the transactions in the economy.
The speculation in the Stock Exchange is not the best road to keep neither the wealth nor the well-being of the society. The investment in the real economy is different because generates true wealth: goods and services.
In the current recession, the speculation has been one of the main causes. Hardly too few month ago the world economy ---and specially the poor countries--- was desperate
by the increase of the oil and food prices.
This recession is a good opportunity for to reflection about what true wealth is and what not.
Helping the car industry, for example, is necessary for maintaining the economy not only of the United States but of the rest of the world. This industry is vital for the real economy.

The carmaker is the most emblematic industry of the North American Capitalism

If the industry closes their doors, it would be a knock out to the core of the economic system and to the American Dream.
The carmaker was one of the first great industries of the United States and, until now, their contribution has been vital for the creation of jobs and the development of science and technology. Sure also has made mistakes as sure too other sectors has made errors. But the automaker industry is something essential for the North American economy and the world economy.
The industry has now the challenge of developing a new type of green cars for to avoid the destruction of the planet.
The progress of a country is linked to their capacity for to develop efficient means of transport. The modern society must not to come back to the time of the horses and wagons.
It is a problem of justice. Why is not requested the same conditions to the financial sector?
The financial help that is requesting the carmaker industry is something insignificant compared with the help given to the bankers. The difference is that the industry is a creator of true wealth.

The carmaker industry deserves the financial help of the Congress

Helping the carmaker industry is a secure mean for guarantee the recovery of the North American economy.
The impact of the automobile industry on the rest economy is of great magnitude. The recuperation of this industry is something essential for the general well-being of the society.
The industry has made a serious effort for to improve their activity but has been a victim of the general economic crisis, especially, of the reduction of the purchase capacity of the consumers in the last months.
The announce of the Ford CEO, Alan Mulally, who said on Tuesday December 2 that he will work for $ 1 per year if the company take a government loan, reveals the attitude of this industry.
The leaders of Wall Street and of the main banks that received the financial aid of the Congress never has pronounced a promise of this kind.
Helping the automobile industry is not only just but something necessary for the recover of the lost jobs and the economic growth of the United States and the rest of the world economies.

How to recover an economy after a financial disaster

Giving assistance direct to the consumers
and key industries is the unique manner
of to recover an economy after a financial disaster

Sometimes the leaders of the countries forget the lessons of the history. And the most important lesson of the history is that the history tends to repeat.
That is what is happening now in the United States. A similar phenomenon ---analogue is the correct word because is in part equal and in part different--- already occurred in the decade of the thirty years.
Indeed, after the collapse of 1929 ---during the Great Depression--- the President Hebert Hoover thought that giving financial assistance to the banks was the correct form for recover the North American economy. But very soon the facts demonstrated that the President Hoover was in a mistake. The government gave the financial assistance to the banks, but the money not ever went to the hands of the population. The bankers invested the official financial help in their own interest and business.
The lesson of the history says that the unique manner of to recover an economy after a financial disaster is giving the help directly to the people and sectors that need the assistance.
Now, and in the near future, giving financial assistance to the carmakers industry, for example, is not only something just but an efficient form to begin the recovery of the North American economy.
The impact of the carmaker industry on the rest of the economy is something that anybody can to dispute. This industry is a key activity for the generation of jobs, the development of the science and technology and the creation of true wealth.
For those reasons, giving financial assistance to the car industry is one efficient way for recover the economy.
The other way is giving direct assistance to the people that have lost their homes and to those people that are struggling for keeping their homes. The government might create an official fund for financing directly to those families. The poor North American people have too the right of to be helped by their government.

Giving financial assistance direct to the consumers

Giving financial assistance direct to the consumers
Is the unique way for to resolve the crisis

The financial assistance to the banks does not guarantee the solution of the economic crisis. In the history ---during the Great Depression--- a similar decision was adopted by the government but was not successful.
The unique manner of to restore the power of purchase to the consumers is giving the financial assistance direct to them.
Giving assistance to the banks does not guarantee that the banks will invest that money helping the consumers. On the contrary, the banks might use those resources for investments that guarantee their own interest, that usually are not the interest of the consumers.
To help an industry as the carmakers is a way for to restore the power of purchase of the population.
To help directly to the debtors of the real estate sector is a way for the solution of the crisis.