Welcome to Capital Account. What we are seeing across the Western world is exactly what happens when faith in the systems of governance and commerce are shaken to such a degree that the emerging cracks in the foundation appear too large and the holes too gaping to fix by traditional means. Nowhere is this more obvious than in Greece, where a system-wide reset seems the only realistic outcome at this point. The inability of politicians to form a viable government is only the latest act in this national drama. Deposit and capital flight, a collapse in domestic investment, and a paralyzing debt burden have weighed on a Greek economy in the throes of a dark social depression unlike anything the country has seen in recent generations. And with similarly-indebted neighbors facing bailouts and austerity, it's not hard to imagine a similar trajectory for other economies. So as the cracks within western societies and their economies grow larger and deeper, the divide between the real economy and the one inhabited by the financiers grows equally with it. Last week, we learned that JP Morgan, the largest Wall Street bank to have emerged from the crisis of 2008 not only unscathed, but enriched and bigger than ever before, announced a hole of its own on its balance sheet of more than $2 billion dollars. But not to worry, because cracks on Wall Street can always be fixed with the glue of more easy money, deregulation and monopoly privilege. Holes can be filled with the endless support ... Теги:Capital AccountLauren LysterDemetri KofinasGerald CelenteRussia TodayrtamericaRTFinanceMarketsEconomyJamie DimonJP MorganToo Big to FailGoldman SachsLloyd BlankfeinBailoutsBanksAusterityGreeceSpainEurozone crisiseuroNBCMeet the Presscentral banksMario DraghiFederal ReserveElliott SpitzerElizabeth WarrenJim RickardsJon CorzineMF Globalfinancial fraudFacebookDepartment of JusticeWall StreetCIOLondon Whale
