Skip to main content

Financial crises: a tool for the banking cartels to become more powerful


Ten years after the last financial meltdown, very few spotted and mentioned (even until today) an astonishing admission by the Financial Crisis Inquiry Commission (FCIC).

In the conclusions on chapter 20 of the report, the Commission implies that trillions (with a T) of taxpayer dollars were mobilized to stabilize the system.

Yet, perhaps the most astonishing conclusion that drawn very little attention, lies in the last sentence in which the Commission actually confirms that the financial sector is even more concentrated in the hands of very few powerful institutions:

A series of actions, inactions, and misjudgments left the country with stark and painful alternatives—either risk the total collapse of our financial system or spend trillions of taxpayer dollars to stabilize the system and prevent catastrophic damage to the economy. In the process, the government rescued a number of fi- nancial institutions deemed “too big to fail”—so large and interconnected with other financial institutions or so important in one or more financial markets that their failure would have caused losses and failures to spread to other institutions. The government also provided substantial financial assistance to nonfinancial corporations. As a result of the rescues and consolidation of financial institutions through failures and mergers during the crisis, the U.S. financial sector is now more concentrated than ever in the hands of a few very large, systemically significant institutions. This concentration places greater responsibility on regulators for effective oversight of these institutions.


And while everyone sits and waits for the next, almost certain, big crisis, the banksters are getting ready to take advantage of it ... again. In 1929 they did it. In 2008, they took more. Not only they've been rescued with trillions, not only they eliminated competitors, but they sacrificed entire nations to retain their parasitic nature.

Recall that, Deutsche Bank was one of the major drivers of the collateralized debt obligation (CDO) market during the housing credit bubble from 2004 to 2008, creating about $32 billion worth. The 2011 US Senate Permanent Select Committee on Investigations report on Wall Street and the Financial Crisis analyzed Deutsche Bank as a case study of investment banking involvement in the mortgage bubble, CDO market, credit crunch, and recession. It concluded that even as the market was collapsing in 2007, and its top global CDO trader was deriding the CDO market and betting against some of the mortgage bonds in its CDOs, Deutsche bank continued to churn out bad CDO products to investors.

Well, guess how this zombie mega-bank rewarded: in 2009, Mrs. Merkel experienced a big shock. Some of her advisers called her and told her that the Frankfurt banks (especially Deutsche Bank, having exposures of more than 30 times the German GDP) had bankrupted as a consequence of the huge financial crisis that has started from Wall Street and the collapse of Lehman Brothers.

So, Mrs. Merkel was forced to 'swallow a glass full of political poison' by going to Bundestag to ask for 500 billion euros for the German banks which until a few months ago were swimming in profits. She was very angry, she couldn't accept it because she was a politician that actually represented principles like saving resources, not spending taxpayers' money, and suddenly, she had to take 500 billion from the taxpayers to save the bankers. She thought, 'I did, it's over, let's move on.'

A few months later, the same people called her and told her that they want another 300 to 500 billion for the same banks. They said (as an excuse apparently), that this time we have Greece that is bankrupted, so if Greece default on its debt Italy will be next and we will need another 500 billion.

So, what happened then is very simple: Merkel went again to Bundestag, yet she didn't dare to request again money for the German and the French bankers. She requested money in the name of 'solidarity' to Greece. Therefore, the money ended to save the Franco-German banks through the Greek Ministry of Finance. This was the first memorandum for Greece.

Indeed, from October 2009 to early May 2010, there were a number of meetings between the European institutions, the IMF, bankers and the new government of the socialist PM George Papandreou, who had won the elections on 4 October 2009 with 43% of the votes, which is a very high rate. They were to finetune a new bail-out programme for the Greek banks and their creditors. Greece did not have enough financial resources to help them out.

What should have been done is the opposite of what Papandreou did, siding as he did with private banks that were responsible for the crisis: namely refuse point-blank to give new public money to the banks and avoid increasing the public debt for this nefarious objective. If Papandreou had adopted an attitude that suited the interests of a majority of Greece’s people, we would have avoided the social and political drama that ensued.

Conclusion:

The banking parasites, which are even more powerful, are free to play their games again under zero regulations, until the next financial crisis. And then, while some of you hope that at least you may see the end of parasitic capitalism, the parasites may become more powerful than ever.

Comments

Popular posts from this blog

WikiLeaks paper reveals Congressional think tank specific techniques for 'persuading' audiences

This document was obtained by WikiLeaks from the United States Congressional Research Service. The CRS is a Congressional "think tank" with a staff of around 700. Reports are commissioned by members of Congress on topics relevant to current political events. Despite CRS costs to the tax payer of over $100M a year, its electronic archives are, as a matter of policy, not made available to the public. Individual members of Congress will release specific CRS reports if they believe it to assist them politically, but CRS archives as a whole are firewalled from public access. This report was obtained by WikiLeaks staff from CRS computers accessible only from Congressional offices.
globinfo freexchange
A report from April 12, 2007, was "Prepared primarily for congressional staff members called upon to help prepare speeches for Members,” and “provides basic guidance on obtaining speech material, using it to prepare a speech draft, and presentation.”, as we read in the abstract. …

Mystery solved: here's why the Western mainstream media suddenly 'discovered' the war in Yemen

globinfo freexchange
Why it took so long for the Western mainstream media to 'discover' the war in Yemen and the war crimes committed by the Saudi coalition in full co-operation with the US?
One might think that the humanitarian disaster there - caused also by the blockade of goods for the relief of the civilians - has become so obvious, condemned multiple times by the UN, that the media finally forced to speak about it.
In previous article we attempted to explain the 'unexplained phenomenon' and the fact that CNN surprisingly returned to the issue to openly condemn the US support to the Saudi coalition atrocities against civilians in Yemen.
Yet, despite that the Saudi regimes have been, traditionally, the best allies of the Western neocolonialists, this time, the US had serious reasons to overthrow the Saudi crown prince Mohammed bin Salman (MBS). And, surprisingly enough, at the center of this underground conflict lies an attempt by the US to privatize Aramco, Saudi Arab…

The Snowden files: NSA's plans for a hundred percent coverage of every square inch of the planet

NSA wants to take its battlefield targeting alert system that they used to kill people in Iraq and in other war zones and implement it globally, so that they can target anybody anywhere.
globinfo freexchange
Suzie Dawson, asylum-seeking journalist and current President of the Internet Party of New Zealand, is being targeted by New Zealand intelligence agencies as a result of her activism in the Occupy movement and against the TPP, among other causes.
Dawson spoke with Jimmy Dore and made some astonishing revelations coming from Edward Snowden that were very little known. Here are the most impressive:
According to the NSA, it takes a whole village for them to spy on the UN. That's a direct quote they worked with the State Department and the CIA to spy on and monitor and infiltrate the United Nations.
The NSA was literally planning a system of global control. They refer to it in their documents as the global network and they want that spying network to cover the entire globe. They actua…

Recent US elections confirmed that progressives will have to fight two monsters at once: Donald Trump and corporate Democrats

failed evolution
Nancy Pelosi's speech after Democrats took the House in recent US elections was not just a huge disappointment. Many progressives became furious about her empty speech, which was full of the most obsolete political generalities and cliches.
But it was not just that Pelosi didn't want to committ that Democrats will fight for specific issues - in favor of the vast majority of Americans - that returned in the political debate by Bernie Sanders and the progressive movement.
She actually 'gave the finger' to the progressives straight and clear.
If you don't believe it, just check her own words: “... we will strive for bipartisanship. [...] we have a bipartisan marketplace of ideas that makes our democracy strong ...
Translation: ‘We will do business as usual. The bipartisan dictatorship will remain strong and under the control of the plutocratic elite. Nothing will change, don't bother.
That's all you need to know.
Here is another evidence that the c…

The establishment apparatus fabricates another poll to 'adjust' popular preference in favor of Joe Biden, against Bernie Sanders

globinfo freexchange
In late August, we identified an effort by Politico (rather sloppy), to present Joe Biden as the most suitable leader for the Democratic party, based on the fact that he could beat Donald Trump.
The sloppiness of the effort was proved by the way in which Biden was promoted against Bernie Sanders, despite that the latest was beating Trump with the same percentage, according to Politico's poll.
It was CNN that came now with another poll to contribute to this pro-Biden operation and actually verify the title of our article back then. That is, corporate Democrats will promote Joe Biden against Bernie Sanders. Indeed, as usatoday reports:
           Former Vice President Joe Biden holds a wide lead over the other potential candidates to challenge President Donald Trump in 2020, a CNN survey found. About a third of respondents named Biden as their choice to carry the Democratic banner in the next presidential election (33 percent), while Vermont Sen. Bernie Sanders cam…

Liberal plutocrats preparing ground to wipe out progressives and directly take over the Democratic party in US

globinfo freexchange
Through his own humorous style, comedian Lee Camp pointed out something quite serious. As he explained, Facebook's founder and CEO, Mark Zuckerberg, fulfilled all the conditions necessary to run for president of the United States.
One key condition is certain and obvious: tons of money.
Another one, is to pretend to be religious. And this condition is, of course, particularly important in the America of Donald Trump. Indeed, as Camp says, the former Atheist Mark Zuckerberg has suddenly found religion.
And the most recent fulfilled condition by Facebook's boss, was to secure the alliance with the US deep state.
Indeed, on October 11, Facebook announced the removal of 559 pages and 251 accounts from its service, accusing the account holders of “spam and coordinated inauthentic behavior.” The primary thread connecting victims of the purge seems to be that they are critics and/or opponents of the American political “mainstream” or “establishment.”
Also, as Ben Nort…

Major cheerleader of the Iraq war says entire Arab world is completely dysfunctional!

globinfo freexchange
           I got news for you. The entire Arab world is dysfunctional right now. Completely dysfunctional. And I think it has the potential to be a giant Yemen. A giant human disaster area.
Guess who said that, and most importantly, why he said it:

For a moment we thought that a miracle was about to happen. We thought that Thomas Friedman would become one of the few exceptions that would declare regret for supporting the Iraq war, in a self-criticism short 'crisis'. You know, the war that was based on big lies and opened Pandora's box for the Middle East chaos. But no. It was too good to be true.
As Ben Norton of the Real News explains:
For the past two years, many leading pundits have been portraying Mohammed bin Salman (MBS) as essentially the savior of the Middle East, if not of the world. Thomas Friedman is probably the most egregious example. But Thomas Friedman is a powerful New York Times columnist, a so-called expert on the Middle East. And he, of c…

George Soros tried to get rid of Yanis Varoufakis because the neoliberal regime could not handle Greece and Ukraine simultaneously

globinfo freexchange
In a recent interview at the Greek channel, Crete TV, the former Greek Minister of Finance, Yanis Varoufakis, made some interesting revelations. Among other things, he actually confirmed what the blog thought until now to be an exaggerated far-right conspiracy theory. He essentially confirmed that George Soros intervenes directly to political leaderships, substituting political institutions in Europe and elsewhere.
Varoufakis said that, on June, 2015, George Soros tried to contact Alexis Tsipras via his own ‘channels’. In the interview, Varoufakis claims that he had no idea what Soros wanted to talk about.
As Varoufakis also writes in his book Adults in the Room: My Battle with Europe's Deep Establishment, for years he has been falsely portrayed by the pro-troika establishment and the anti-Semitic Right as Soros’s stooge in Greece.
Yet, Soros’s message to the Greek prime minister, Alexis Tsipras, came as a perverse vindication. ‘Fire Varoufakis! Europe cannot affo…

New poll gives evidence that the establishment upgrades the identity-politics weapon to crush Bernie Sanders and his progressive movement

globinfo freexchange
Another suspicious poll came out to promote various establishment options against Bernie Sanders. As the Hill reports:
President Trump trails Michelle Obama, Oprah and Sen. Kamala Harris (D-Calif.) by double digits in potential 2020 presidential races, according to a new poll.
Trump also trails several other female candidates in potential races, although by slimmer margins, the Axios poll conducted by SurveyMonkey found.
The poll shows Trump trailing by 13 points to Obama among registered voters polled, by 12 points to Oprah and by 10 points to Harris. He's also down by 9 point to Sen. Amy Klobuchar (D-Minn.) among registered voters surveyed, by 6 points to Sen. Kirsten Gillibrand (D-N.Y.) and by 5 points to his 2016 opponent, Hillary Clinton.
The closest race would be between Trump and Sen. Elizabeth Warren (D-Mass.), the poll found. Warren has a 2-point lead among registered voters, according to the poll.
The poll includ…

The real reason the knives are out for Mohammed bin Salman

In the six weeks before Khashoggi’s disappearance, MBS not only managed to anger the U.S. military-industrial complex but the world’s most powerful bankers.
by Whitney Webb
Part 4 - Trouble in neoliberal paradise
While it is impossible to know MBS’ exact reason for getting cold feet in his once-ambitious plans to privatize the kingdom, we can guess. Indeed, there is a reason that MBS’ elders in the Saudi Royal family have long rejected neoliberal reforms and the mass privatization of their economy.
A 2016 report from Foreign Policy succinctly states why past Saudi Royals have avoided “free-market reforms” as the older generations of the House of Saud “understand the fragility of a monarchy whose brittle pillars rest on the quiescence of conservative clerics and a merchant class hostile to the free-market reforms that will undercut their privileges.” However, far more Saudis than just the “merchant class” have grown accustomed to the largesse of the Saudi state, as the majority of Saudi c…