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"It is one of the serious evils of our present system of banking that it enables
one class of society, and that by no means a numerous one, by its control over the currency
to act injuriously upon the interests of all the others and to exercise more than its just
proportion of influence in political affairs."
Andrew Jackson, Farewell Address
Rational people keep struggling
with the 'why' of all this. I think the struggle is because they
start with some wrong assumptions
about morally rational behaviour
and motives. As Rick Santelli
likes to say, traders are
not moral when they are trading.
I keep coming back to
William K. Black's explanation
for this enormous
attraction to multi-trillion dollar bets at JPM
"Financial
institutions such as JPMorgan
love to buy derivatives because they are opaque, create fictional income that leads to real bonuses and when (not if) they suffer losses
so large that they would cause the bank to fail, they will be
bailed out."
William K Black
The more I look into this and think about it, the more that Barack Obama's 'favorite banker' looks like Enron in their heyday.
I wonder how far the US will
go to prevent the failure
of their 'best bank' from spoiling the grand
illusion, and how many lives
of the poor and the middle class will be sacrificed
to the god of greed and
power.
 
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