banks
The Indicators of Instability to Watch For
by Chris MartensonExecutive Summary
- The inequality of the current system is becoming more and more visible, despite efforts to conceal it
- History shows that control will break as those running the system are forced to compete more directly for a shrinking pie
- The 3 essential indicators of instability to watch
- The high price of a collapse of the status quo (and why developing resilience now is your best investment)
If you have not yet read Part I: Bankers Own the World, available free to all readers, please click here to read it first.
More Equal than Others
Like the pigs in Orwell's Animal Farm, those running the current system are quick to convince us they are doing it out of service, not self-interest (many remember the testimony of Goldman Sachs head Lloyd Blankfein that he sees the bank's efforts as "doing God's work"). The media (most of which is owned by the top 147 companies discussed in Part I) reinforces the perception that the status quo is all that stands between us and economic ruin.
Of course, there's a much darker side to the story. It requires some digging by the curious mind, but the data is there to be found. As previous mentioned, such a parasitical system inevitably concentrates wealth over time into the hands of fewer and fewer of the most privileged and most powerful. Here's an excellent visualization of how that has already happened in the U.S.:
Note that the actual degree of wealth inequality is much worse than Americans perceive it to be. That's not surprising given the absence of light shined on this in the mass media…
The Indicators of Instability to Watch For
by Chris MartensonExecutive Summary
- The inequality of the current system is becoming more and more visible, despite efforts to conceal it
- History shows that control will break as those running the system are forced to compete more directly for a shrinking pie
- The 3 essential indicators of instability to watch
- The high price of a collapse of the status quo (and why developing resilience now is your best investment)
If you have not yet read Part I: Bankers Own the World, available free to all readers, please click here to read it first.
More Equal than Others
Like the pigs in Orwell's Animal Farm, those running the current system are quick to convince us they are doing it out of service, not self-interest (many remember the testimony of Goldman Sachs head Lloyd Blankfein that he sees the bank's efforts as "doing God's work"). The media (most of which is owned by the top 147 companies discussed in Part I) reinforces the perception that the status quo is all that stands between us and economic ruin.
Of course, there's a much darker side to the story. It requires some digging by the curious mind, but the data is there to be found. As previous mentioned, such a parasitical system inevitably concentrates wealth over time into the hands of fewer and fewer of the most privileged and most powerful. Here's an excellent visualization of how that has already happened in the U.S.:
Note that the actual degree of wealth inequality is much worse than Americans perceive it to be. That's not surprising given the absence of light shined on this in the mass media…
Bill Black: The Banks Have Blood on Their Hands
by Adam TaggartWe invited Bill Black to return to explain whether the level of systemic risk due to fraud in our financial markets has improved or worsened since the dire situation he painted for us in early 2012. Sadly, it looks like abuse by the big players has only flourished since then.
In the U.S., our regulators have publicly embraced a "too big to prosecute" doctrine. We are restraining, underfunding, and dismantling regulatory oversight in the interest of short-term stability for the status quo. Which, as a criminologist, Black knows with certainty creates an environment where bad actors will act in their self-interest with assumed (and likely real, at this point) impunity.
Bill Black: The Banks Have Blood on Their Hands
by Adam TaggartWe invited Bill Black to return to explain whether the level of systemic risk due to fraud in our financial markets has improved or worsened since the dire situation he painted for us in early 2012. Sadly, it looks like abuse by the big players has only flourished since then.
In the U.S., our regulators have publicly embraced a "too big to prosecute" doctrine. We are restraining, underfunding, and dismantling regulatory oversight in the interest of short-term stability for the status quo. Which, as a criminologist, Black knows with certainty creates an environment where bad actors will act in their self-interest with assumed (and likely real, at this point) impunity.
Where Will the Minsky Moment Occur?
by Alasdair MacleodExecutive Summary
- Spain: after tens of €billions in bailouts, its banks still need more
- Germany: its largest banks are ridiculously levered
- France: its banks are deteriorating fast with the sinking French economy
- UK: bail-ins are now on the table
If you have not yet read Part I: Europe's Precarious Banks Will Determine the Future available free to all readers, please click here to read it first.
Spain and Bankia
The true state of the Spanish economy (i.e., it is in depression) should be uppermost in our minds when we consider recent developments at Bankia, the Spanish mortgage bank formed only thirty months ago out of the wreckage of Spain’s regional mortgage banks. Bankia underwent a subsequent bail-out only a year ago and has been a continuing disaster, as shown by the share price in the chart below.
Having fallen from an adjusted €106 to only 68 cents as recently as last November, the share price tells us that Bankia is simply bust. The new G20 bail-in rules cannot have helped Bankia hold on to its deposits; the only deposits left should be those of the small depositors prepared to rely on government insurance.
The Cyprus bail-in precedent has undoubtedly made Bankia’s position worse than it would otherwise be. At March 31st Bankia…
Where Will the Minsky Moment Occur?
by Alasdair MacleodExecutive Summary
- Spain: after tens of €billions in bailouts, its banks still need more
- Germany: its largest banks are ridiculously levered
- France: its banks are deteriorating fast with the sinking French economy
- UK: bail-ins are now on the table
If you have not yet read Part I: Europe's Precarious Banks Will Determine the Future available free to all readers, please click here to read it first.
Spain and Bankia
The true state of the Spanish economy (i.e., it is in depression) should be uppermost in our minds when we consider recent developments at Bankia, the Spanish mortgage bank formed only thirty months ago out of the wreckage of Spain’s regional mortgage banks. Bankia underwent a subsequent bail-out only a year ago and has been a continuing disaster, as shown by the share price in the chart below.
Having fallen from an adjusted €106 to only 68 cents as recently as last November, the share price tells us that Bankia is simply bust. The new G20 bail-in rules cannot have helped Bankia hold on to its deposits; the only deposits left should be those of the small depositors prepared to rely on government insurance.
The Cyprus bail-in precedent has undoubtedly made Bankia’s position worse than it would otherwise be. At March 31st Bankia…
Say Goodbye to the Purchasing Power of the Dollar
by Adam TaggartOn a long solo car trip this past weekend, I downloaded several podcasts to listen to as the miles passed. One was a classic: The Invention of Money, originally released by NPR's Planet Money team back in January of 2011. I highly recommend listening (or re-listening) to it in full.
The podcast is a great reminder of how any currency in a monetary system is a fabricated construct. A simpler way to explain this is to say it has value simply because we believe it does.
Say Goodbye to the Purchasing Power of the Dollar
by Adam TaggartOn a long solo car trip this past weekend, I downloaded several podcasts to listen to as the miles passed. One was a classic: The Invention of Money, originally released by NPR's Planet Money team back in January of 2011. I highly recommend listening (or re-listening) to it in full.
The podcast is a great reminder of how any currency in a monetary system is a fabricated construct. A simpler way to explain this is to say it has value simply because we believe it does.
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