"“We have lent a huge amount of money to the U.S. Of course we are concerned about the safety of our assets. To be honest, I am definitely a little worried.” "

Chinese premier Wen Jiabao 12th March 2009

""We have a financial system that is run by private shareholders, managed by private institutions, and we'd like to do our best to preserve that system."

Timothy Geithner US Secretary of the Treasury, previously President of the Federal Reserve Bank of New York.1/3/2009

Wednesday, October 15, 2008

This hurts us more than it will hurt you.

"“promoting a competitive financial services sector leading the world and supporting continued economic innovation.”...remeber that was the Bush plan ... now Hank the Bank according to the Guradian today ...An insider said Paulson dictated the terms after summoning chief executives on Monday. "It wasn't a debate."

More bollocks from Hank ... Government owning a stake in any private U.S. company is objectionable to most Americans, me included. Yet the alternative of leaving businesses and consumers without access to financing is totally unacceptable." ...This hurts me more than it hurts you.

Harvey Pitt briefly held the Chairmanship of the US Securities and Exchange Commission (SEC) for two years until 2003 when he resigned on election day.

He is quoted by the BBC as having said yesterday on BBC World News, "We've got a 21st century financial services marketplace and a 19th century regulatory model."

He further added that there was a lack of transparency both within and between organisations and businesses in the financial / insurance sectors in the US.

Belatedly he has placed his finger on the problem that has been glaringly evident to many outside the incestuous world of international finance. The current problems of credit lockdown are a SYMPTOM not a CAUSE.

The falire to close down credit both with individuals (when were you last chased down a mall to open anew Credit card ?) businesses but also between banks and quasi (investment) banks - resulting in the soaring LIBOR rate (whose calculation has been rigged for years - see Friday, April 18, 2008 British Bankers Association caught lying about LIBOR rates ) only reflects that the gig is up for the lying bankers.

Banks of all shapes, sources and sizes have been producing fraudulent balance sheets and declaring non-existent profits and paying massive bonuses and dividends for years -

1. Lloyds bank was offering a higher yield on shares than on their best deposit accounts.
2. 60% of Sacks of Gold Gross Trading profit went in remuneration of staff.
3. leveraging of 30 - 1 was (and still is) common , ie they borrowed £30 for every £1 deposits.

The result is not lack of confidence but confusion, wrought by criminal behaviour of many (but not all) - politicians bereft of ideas have decided to throw the taxpayers money at the problem.

Hank was on the blower again the last few days but we couldn't help him... he had this crazy idea of buying into banks, taking preference shares with a 5% coupon (so he gets his (taxpapyers) money back in 20 years).

Apparently hidden away somewhere was the power for him to do this with the money in his swag bag.

Can you imagine the organisation that must be put in place to oversee this massive shareholding in banks ? Who will staff it ?

Maybe the guys lining Wall Street round the corner from the door marked EXIT at Lehman Bros.

In the UK Gordon Brown...

...says he doesn't want to run banks... Ho.Ho.Ho...This on the day when the Cabinet are ready to give the go ahead to having a National database on every individual which will have details of our web browsing, phone calls .....?

Is this the end of the beginning ? NO way...not even the begining of the start of the early part of the financial holocaust that is on it's way. Especially on those nations where financial jugglery has overtekn real economies, where people make things and sell things with worth, asset value and utility.

Next up for a shock horror explosion of concern and worry is the insurance industry.

One good bit of nes is that the EU is dismantling the nonsense of carbon trading .... Old Lord Patel's Almanac says you will here no more about Global warming in 5 years time as wesern economies fight energy costs to keep their populations fed and watered.

1 comment:

sam_m said...

One thing the UK might consider doing is taking Adam Smith off the paper currency.
When readers of Lord Patel's years were at school, Smith's theories were taught as discredited but since Thatch he's been held as an icon.

His accolytes have had their flush busted yet again.

(C) Very Seriously Disorganised Criminals 2002/3/4/5/6/7/8/9 - copy anything you wish