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Thread: Big Finance has failed

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    Politics.ie Member Captain Willard's Avatar
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    Default Big Finance has failed

    “The financial services industry is too big, too complex, too fragile and too arrogant”
    Dan O’Brien (Irish Times, 10 August 2012)
    This commentary piece by our decidedly less than radical economist friend asserts further that this industry simply cannot be left “unpurged” without presenting a threat to democratic society. In fact, when you read the piece you will find that the industry is described as rotten.

    Big finance has failed and its rottenness has not yet been purged - The Irish Times - Fri, Aug 10, 2012


    I wonder if this perspective can be sensibly captured by the word diseased. In the sense that left un-minded a malady becomes debilitating or septic. And, of course, many diseases also carry a threat of contagion.

    “How to make it (global finance) smaller, simpler, stronger and humbler is among the greatest public policy challenges of the 21st Century”
    Exactly. So, it is fundamentally discouraging to find in the article a reference to the scandal of the Standard Chartered Bank. This institution was accused of being engaged in money laundering on a vast scale, and US investigators claimed to have identified 60,000 breaches of the Iran sanctions scheme. But that scandal has apparently gone into remission. A bargain was deemed the best way forward and the misdeeds have quietly settled into the role of a regulatory footnote.

    This is not how rottenness or disease is purged.

    Stability and vigour will not become reality as long as shadow banks in rogue havens arm their wealth managers with nuclear instruments. Any thought of being free to pursue stable prosperity is nonsensical when we allow liberty to be twisted into a neoliberal commandment.

    Is it not the case that all transactions, however clever they seem, must at some point be reconciled, or monetised, if one can borrow that term? The space where these connections occur is the best place to activate the purge. That space may be just up the road by the way.

    Modes of stability can be made instrumental. These contaminated financial schemes can be detoxed at the point where they become a currency used to purchase the trappings of toxic wealth.
    Knowledge is not heaps of new ideas but the use of a comparison between new and established relationships: Eunomus

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    Big Finance has failed.

    Yep, as did communism.
    Once your ability to function within society depends on a government controlled ID card then you are no longer a free citizen.

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    Quote Originally Posted by Mad as Fish View Post
    Big Finance has failed.

    Yep, as did communism.
    it's easy to forget that it's always people that fail not systems or companies. it's also easy to hide behind corporate facades or abstract concepts.

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    Politics.ie Member Captain Willard's Avatar
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    Does the assertion that a purge is needed have validity?
    Knowledge is not heaps of new ideas but the use of a comparison between new and established relationships: Eunomus

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    Quote Originally Posted by YouKnowWhatIMeanLike View Post
    it's easy to forget that it's always people that fail not systems or companies. it's also easy to hide behind corporate facades or abstract concepts.
    People are the systems so if a group takes power with a belief that their system (the way they organise themselves, and by extension the state) is superior to the previous regimes then they are responsible for its functioning. If it proves that the system is flawed then it also indicates that their beliefs were flawed but all this depends upon the original objectives. Big Finance for instance has not failed the rich by any means so if it was the desire amongst those who brought us to this crisis to see a divided and unjust society then it has succeeded brilliantly.
    Once your ability to function within society depends on a government controlled ID card then you are no longer a free citizen.

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    Quote Originally Posted by Mad as Fish View Post
    People are the systems so if a group takes power with a belief that their system (the way they organise themselves, and by extension the state) is superior to the previous regimes then they are responsible for its functioning. If it proves that the system is flawed then it also indicates that their beliefs were flawed but all this depends upon the original objectives. Big Finance for instance has not failed the rich by any means so if it was the desire amongst those who brought us to this crisis to see a divided and unjust society then it has succeeded brilliantly.
    Let's take Anglo Irish Bank as an example, who is at fault the bank or the people in the bank who acted fraudulently?

    It's easy for Sean and David to hide behind the system now when actually it's them who acted fraudulently should be in jail.

    This is now a blue print for other fraudsters, let's set up a bank ramp up massive debt, make people in power dependent on your banks credit and threaten to blow up the entire system if the state (whatever that is) doesn't take on your debt.

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    Politics.ie Member Analyzer's Avatar
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    Big Finance = European Cartel Bank.

    The ECB set the interest rate, caused asset bubbles.

    And today, there are asset bubbles in Finland, The Netherlands, and parts of Germany as a result of the interest rate policy.

    The ECB's interest rate policy is a subsidy for speculation.

    Be forewarned. The bill will be put to working taxpayers.
    Coveney's ambition is the be Ireland's next EU Commissar and Ireland will pay a price as he builds his CV to position himself sufficiently loyal to the nEU empire.

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    Quote Originally Posted by YouKnowWhatIMeanLike View Post
    Let's take Anglo Irish Bank as an example, who is at fault the bank or the people in the bank who acted fraudulently?

    It's easy for Sean and David to hide behind the system now when actually it's them who acted fraudulently should be in jail.

    This is now a blue print for other fraudsters, let's set up a bank ramp up massive debt, make people in power dependent on your banks credit and threaten to blow up the entire system if the state (whatever that is) doesn't take on your debt.
    I agree with you entirely on that, you are right and to get round this we must recognise large organisations and the people running them are one and the same thing. The criminals who have profited and escaped have done so because the perception is that the company is bigger than the man. This is true where the man is truly accountable to others within the company who should have a separate set of objectives and interests at heart, but this check obviously failed and is still failing within banking circles.

    From that point of view the banks should indeed be allowed to fail. What have we to lose in the long term?
    Once your ability to function within society depends on a government controlled ID card then you are no longer a free citizen.

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    Quote Originally Posted by Analyzer View Post
    Big Finance = European Cartel Bank.

    The ECB set the interest rate, caused asset bubbles.

    And today, there are asset bubbles in Finland, The Netherlands, and parts of Germany as a result of the interest rate policy.

    The ECB's interest rate policy is a subsidy for speculation.

    Be forewarned. The bill will be put to working taxpayers.
    We have now reached the point though there is no more money to be taken from an increasing number of taxpayers. It is no longer a fanciful concept that might occur sometime in the future, but the reality of here and now.
    Once your ability to function within society depends on a government controlled ID card then you are no longer a free citizen.

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    Politics.ie Member Captain Willard's Avatar
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    "I believe that banking institutions are more dangerous to our liberties than standing armies.

    If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs."

    Thomas Jefferson, (Attributed)
    3rd president of US (1743 - 1826)
    Knowledge is not heaps of new ideas but the use of a comparison between new and established relationships: Eunomus

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