{"id":2005001,"date":"2014-09-25T10:30:37","date_gmt":"2014-09-25T05:00:37","guid":{"rendered":"http:\/\/stockviz.biz\/index.php\/?p=2005001"},"modified":"2014-09-25T10:31:03","modified_gmt":"2014-09-25T05:01:03","slug":"lessons-latin-american-debt-crisis","status":"publish","type":"post","link":"https:\/\/stockviz.biz\/index.php\/2014\/09\/25\/lessons-latin-american-debt-crisis\/","title":{"rendered":"Lessons from the Latin American Debt Crisis"},"content":{"rendered":"<p>Excellent article at Pieria. Here&#8217;s the tl;dr:<\/p>\n<p>Three times over the past thirty years the major banks have actually been bankrupt. This is what we have learnt:<\/p>\n<ol>\n<li>Short-term profits mean more to bankers than long-term risks.<\/li>\n<li>As long as banks are willing to roll over debts, silly loans are not dangerous to anyone.<\/li>\n<li>No matter how free market an ideologue a Central Banker is, he will overcome his inhibitions and do whatever it takes to save the big banks.<\/li>\n<li>The first thing the central bankers need to do when the banking system is effectively bankrupt is hide this truth.<\/li>\n<\/ol>\n<p>Tools Central Bankers have used:<\/p>\n<ul>\n<li>Get the taxpayers to buy the dumb loans from the banks.<\/li>\n<li>Cut the short-term rates so that banks can borrow cheaply while letting long term rates remain high. Since banks borrow short and lend long, this means their profits skyrocket.<\/li>\n<li>Impose austerity.<\/li>\n<\/ul>\n<p>Read the whole thing here: <a href=\"http:\/\/www.pieria.co.uk\/articles\/latin_america_the_archetypal_financial_crisis\" target=\"_blank\">LATIN AMERICA: THE ARCHETYPAL FINANCIAL CRISIS<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Excellent article at Pieria. Here&#8217;s the tl;dr: Three times over the past thirty years the major banks have actually been bankrupt. This is what we have learnt: Short-term profits mean more to bankers than long-term risks. As long as banks are willing to roll over debts, silly loans are not dangerous to anyone. No matter &hellip; <\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3471,9],"tags":[],"class_list":["post-2005001","post","type-post","status-publish","format-standard","hentry","category-investing-insight","category-your-money","entry"],"_links":{"self":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts\/2005001","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/comments?post=2005001"}],"version-history":[{"count":0,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts\/2005001\/revisions"}],"wp:attachment":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/media?parent=2005001"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/categories?post=2005001"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/tags?post=2005001"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}