muses of the moment

May 23, 2010

Latest letter from Martin Armstrong May 20, 2010

Click here (new link) for the latest letter dated May 20, 2010 from Martin Armstrong entitled Immoral, not Illegal, A Crisis in Ethics Repeating the 1930’s (15 pages).

Short summary: Mr. Armstrong talks about separating commercial banks and investment banks. That would be a start. This is a crisis in public confidence. Martin says that the banking model we use will always result in a crisis because of its very nature. Banks take deposits in the short-term and lend long-term to earn money on the difference between those two numbers. This works well until an economic downturn that happens every 8 years or so, when long-term depositors want their money back and it’s not there. Therefore….liquidity crisis. Constant booms and busts.

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