"Simply put, we are in an era of hyper competition and the Banking system is far from immune - just look at the deals that have been thrown your way, just to get you to borrow money. Think of the automotive industry, it is no longer about buying cars, but getting the right type of credit. Think of huge global corporations - General Electric for example - where does most of it's revenue come from? Not from manufacturing, but from the GE Capital arm of it's business - finance. The same can be said of General Motors and it's GMAC finance arm."
Can we be certain that its the executives that we are to bail out? Or could it be that those same executives created a system of debt cycling and its really that we are bailing out ourselves for the way we survived financially over the past 10 years?
Food for thought. Good blog.
AP
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