Liborgate, Why are you Not Surprised?

  If you have been following the latest financial news, you have no doubt been reading about Barclay’s Bank which was fined hundreds of millions of dollars for (Gasp) manipulating the libor daily interest rate. (Libor is the London Interbank Offered Rate) First off, before I get in to the the gist of this, let me ask you a rhetorical question. If you were found guilty of rigging a bid, or, manipulating a market, what do you think would happen to you? Well I may not know exactly, however, just look at what happens to guys involved in Insider Trading, How does 20 years sound to you? Instead, what we get here is, the flowery language which goes something like this. The Accused company does not have to admit or deny guilt and is fined a couple of hundred million in fines and its, No hits, No runs, No fouls. Not one of these Clowns ever goes to Jail. Instead they just factor in the fines as “The Cost Of Doing Business”. Yes, that’s right, steal tens of Billions of Dollars though cooked up schemes and pay a fine of a couple hundred million dollars. Why would any bank stop? They wouldn’t and won’t until we start demanding these Jerks get the Big House.

  Until we as a people demand justice, nothingĀ will change. If you think this is an isolated case, think again. Within the past 8 months or so, we have had the MF Global bust with banks Stealing Customer funds which were supposed to have been segregated. We recently have seen the blow up of JP. Morgans CIO. fund in London. JP likes to make the case that these are all bank funds but they are not. They also Lied about the total exposure. Initially they said they lost 2 billion but as more and more leaks out about this, the number keeps climbing as we are around the 5 billion figure. Whatever the number, the idea that this is all done with the banks own money is a Joke. You see when the bank is in trouble, they go to the government and want a loan which is back stopped by you, Mr. and Mrs. John Q. Public. When the bank wins, the money goes in their pockets. The problem is, When you think your too big to fail, you don’t care about the risk as you can never go broke because you are back stopped by the tax payers. Heads I win, Tails I win. Hence, the banks take on more and more risky schemes because there are no consequences for bad judgement, or, out right criminal activity.

  Increasingly, you are seeing more and more Mob like behavior from the Bankster’s. Lets see if this the latest outrage is prosecuted. For my money, they will do nothing. My advice is to continue to make preparations for when this house of cards comes tumbling down. When the crisis of confidence begins…Its going to be a whole new ball game..





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