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Greece and the economic hit men

August 3, 2015

Phil Ebersole's Blog

Like many people, I once naively believed that banks made a profit by lending money to people who would pay them back.  I’m sure that is still the case with the many honest bankers still left in the world.

But in many cases, it is more profitable to make loans to people who can’t pay them back.  The lender collects higher interest rates.  Sometimes the loans are securitized and sold to suckers.   Foreclosures are more profitable if the value of the underlying asset is greater than the loan.

And last, but not least, if the lender is large enough and politically powerful enough, a government will bail him out.

John Perkins, author of Confessions of an Economic Hit Man (which I haven’t read), gave an interview to a Greek radio station explaining how this works.

Essentially, my job was to identify countries that had resources that our corporations want, and…

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