If you are new to this blog, you are invited to read first “The Largest Heist in History” which was accepted as evidence and published by the British Parliament, House of Commons, Treasury Committee.

"It is typically characterised by strong, compelling, logic. I loosely use the term 'pyramid selling' to describe the activities of the City but you explain in crystal clear terms why this is so." commented Dr Vincent Cable MP to the author.

This blog demonstrates that:

- the financial system was turned into a pyramid scheme in a technical, legal sense (not just proverbial);

- the current crisis was easily predictable (without any benefit of hindsight) by any competent financier, i.e. with rudimentary knowledge of mathematics, hence avoidable.

It is up to readers to draw their own conclusions. Whether this crisis is a result of a conspiracy to defraud taxpayers, or a massive negligence, or it is just a misfortune, or maybe a Swedish count, Axel Oxenstierna, was right when he said to his son in the 17th century: "Do you not know, my son, with how little wisdom the world is governed?".

Wednesday, 7 October 2009

Apology from the bankers

The causes and mechanics of the current crisis require a proper legal investigation. The perpetrators of a pyramid that caused the current crisis must languish in jail (like some Albanian gangsters or Mr Madoff) and their wealth (including stashed offshore) must be confiscated. Governments (including the UK and US) must make their position clear in this respect. Incidentally HSBC appears to have been acting prudently all along with healthy Loan to Deposit ratio of 90% and seems to have been affected by other banks’ actions. Such investigation may be in HSBC own interest. But are they prepared to stand up to the rest of the industry?

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