Not so long ago I posted a blog and a rant about the "Credit Crunch" and various goings on that Joe Public does not understand and one way or another will have to pay for it in the long run with job losses, tax hikes, pension losses and higher cost of living.
I also touched on the fact that some of the big boys in the stock markets know what exactly is going on and that some of stock market dealings are a 'House of Cards built on Shifting Sands" Looks like some one has been 'caught with their hand in the cookie jar'.
"Banks are lining up to reveal billions in potential losses as a result of alleged fraud by Wall Street investment manager Bernard Madoff."
Hardly a week goes by without some bank or financial institution revealing huge losses for unsafe dealing practises or they are writing of billions of dollars/pounds/euros/yen because they got greedy and dived head long in to something that many of them don't know anything about. They are using creative accounting to try and bury their losses and their shame because they have been caught out. Even then they are not revealing the true full costs to the public/shareholders/respective governments that they go begging to for bail out money. They dare not! The whole system would collapse instantly.
It was not so long ago that a big high street bank in Britain said something along the lines "we are exposed to debt of 1.8 billion pounds bla bla blah" and then not long after that have to announce that they are exposed to umpteen billions over and above what they had previously announced. I can't remember the exact figures because since them there has been so many of these stories it is hard to keep up. Bit it should give you an idea what I am referring to.
I personally believe that the whole banking and financial institution has actually collapsed all ready but the big boys at the top are holding it just about together by creative accounting and emergency borrowing from governments. They are grasping a straws in the hope that something will come along save them. They are not passing on huge drops in interest rates, they are foreclosing on businesses and demanding loans back immediately.
A certain bank who is part of a banking giant are even looking at a way of forcing mortgage owners with them to pay in thousands of pounds from their savings into their mortgage accounts to prevent them from being in breech of the mortgage contract. That very same contract that they only to happy to give to borrowers when they were raking in billions in charges for interest and various other charges related to acquiring a mortgage.
Due to public reaction they might no go ahead with it but it shows they are looking for anyway to recover their losses. Bearing in mind that the very same banking giant was running adverts not so long ago advertising their "sensible banking practises" Here is a laugh, that same giant has acquired other financial institutions that collapsed. Who rescues them if they were to collapse?
"The doo doo has hit the extractor" and everybody is going to be hit by the flying debris. When I mean everyone I am referring to the us mere mortals who are way down the pecking order. The few lucky ones at the top will manage to slip through the net with their millions of greed money before the whole lot fall flat on it's face.
Even if they do manage to save the 'System' and then start to look for the guilty people what will they do with them? Even if some of the guilty are convicted for their wrong doings and dodgy dealing will they get sent to a maximum security prison and do hard time? No they will be sent to some lesser grade security prison where they will still able to wear their designer clothes and carry on living a fairly comfortable life style.
One final thought - part of the reason all these troubles have come about is because the banks have stopped lending to each other. To bail them out the governments are borrowing money to bail them out. Who are they borrowing all these billions from if the banks are not lending?
Just a thought.
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