posted on Mar, 5 2009 @ 06:35 PM
Unless things utterly collapse, and I mean apocalyptical dissolution of society, government, and the system as a whole, some corporation or entity is
going become ridiculously wealthy as we climb out of this. The reason for that is that these failed banks' assets will not evaporate, they'll be
auctioned off at insanely low rates considering the current levels of fear and uncertainty. Those who owe will still owe, only they'll owe to a
different master. Its like a slave wishing their current slave owner was dead, only to realize that after said owner dies, all his slaves are
auctioned off rather than freed.
As opposed to government meddling as I am, I sincerely think now is the time for the government to place a federal cap on purchased debt values.
I say that because, as banks and lenders go belly up and their assets are sold, there will be attempts at massive debt gobbling by various financially
able institutions (possibly even individuals) for pennies on the hundreds of dollars. Without regulations on this, I can see the potential for a
person like Buffett to sweep up hundreds of billions of dollars worth of debt, spending a fraction of his wealth, and even if only 25% of the overall
face value of that debt materializes, making an unprecidented profit off of it. We could honestly see an individual holding a veritable monopoly of
foreclosed properties as well as receiving a huge monthly intake of cash from those still paying their debts.
Like I said, the capitalist in me sees the idea of regulating this as being unfortunate, but the alternative would allow the creation of individuals
who wielded unthinkable power and control.