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?".

Tuesday, 22 December 2009

Banks are behaving like loan-sharks

The recent comments of Joseph Stiglitz confirmed what the author of this blog has been writing from months: the banking business model degenerated into the same relationship as loan-sharks have with their victims.

Stiglitz told reporters in Singapore: "The likelihood of this slowdown is very, very high, There is a significant chance that the number will be in the negative range." He called on Washington to make more funds available to state governments who face a drop in tax revenue.

It appears that unless the taxpayers keep pumping up ever more money into economy, it will come to halt again. As this crisis is the direct effect of the collapse of the giant pyramid scheme engineered by the financial industry, more financial stimulai would be a classic example of an attempt to stop its collapse. In this process the financial industry is extracting taxpayers paid maney as profits, bonuses and dividends as the system operates resembling loan-sharks "business model".

It is very disconcerting that politicians, our democratically elected representatives, simply ignore such criminal arrangements.

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