Shutdown Zombie Banks
Sharon | 31.03.2008 12:15 | London | South Coast
The walking dead still stalk Canary Wharf and the Square Mile. Propped up solely by the support of the central banks how long will it be before they admit their condition. The credit implosion is not about a few overstretched borrowers- at it s root is systematic global mortgage fraud.
The FSA and Bank of England acted quickly to head off the 'malicious lies' being spread about the state of the books at HBOS and Lloyds. Markets calmed as traders listened to the soothing tones of these institutions who were equally reassuring when they declared Northern Wreck/Crock/Cock fundamentally solvent. Today we are told of the losses at NR which has now had to come clean. Its report contains some very pessimistic statements regarding the likelihood of many of its loans being repaid. Are we really to believe that this bank was the only bad apple.
The media and these venerable bodies are desperately trying to breathe life back into the banks, endlessly prattling on about confidence and trying to deny the fact that some the big banks died and they have taken the rest with them. The simple fact of the matter is that world debt has overshot the value of the global economys assets by light years. Central banks cannot bail out any more banks- the next big one to fall will not be caught- their pockets are simply not that deep. Capitalism as we know it is officially dead- its just that we're in denial.
The financial systems killer has turned out to be systematic mortgage fraud. Imagine if you will that you belong to an organized crime syndicate or even a large corporation. The bank that holds on to your cash from your drugs deals and money laundering operations mentions that other banks are giving out loans no questions asked to all comers. So you ask yourself- hey why don't I get some of those wiseguys in the neighbourhood to get some people together to you know like borrow some of this cash and buy some of those newly built condos. Then we lie about the cost of the property on the mortgage application, they default on the loan and we split the difference.
Then we find that the fraud trail leads right to the top of US megabank JP Morgan Chase whose staff were instucted as to how to get loans through the banks loan approval system by faking info on their clients incomes.
http://ftalphaville.ft.com/blog/2008/03/28/11898/jpmorgan-chases-zippy-cheats-and-tricks-memo/
The point is that if the politicians and the banks won't admit of their predicament then they obviously need help.
The media and these venerable bodies are desperately trying to breathe life back into the banks, endlessly prattling on about confidence and trying to deny the fact that some the big banks died and they have taken the rest with them. The simple fact of the matter is that world debt has overshot the value of the global economys assets by light years. Central banks cannot bail out any more banks- the next big one to fall will not be caught- their pockets are simply not that deep. Capitalism as we know it is officially dead- its just that we're in denial.
The financial systems killer has turned out to be systematic mortgage fraud. Imagine if you will that you belong to an organized crime syndicate or even a large corporation. The bank that holds on to your cash from your drugs deals and money laundering operations mentions that other banks are giving out loans no questions asked to all comers. So you ask yourself- hey why don't I get some of those wiseguys in the neighbourhood to get some people together to you know like borrow some of this cash and buy some of those newly built condos. Then we lie about the cost of the property on the mortgage application, they default on the loan and we split the difference.
Then we find that the fraud trail leads right to the top of US megabank JP Morgan Chase whose staff were instucted as to how to get loans through the banks loan approval system by faking info on their clients incomes.
http://ftalphaville.ft.com/blog/2008/03/28/11898/jpmorgan-chases-zippy-cheats-and-tricks-memo/ The point is that if the politicians and the banks won't admit of their predicament then they obviously need help.
Sharon
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