Volcanoes, Banking, and Crime – the Big three…

April 15, 2010

Oh, Lor, planes across Europe are grounded! Because of the Icelandic Volcano…or more accurately, the ash from same, expelled forcefully into the atmosphere – perhaps, like the dinosaurs we’ll all die out, become extinct?

No doubt these clouds of volcanic ash will block the sun’s rays, cause temperatures to plummet. Soon the World Government EU will be appealing for us all to burn more fossil fuels to warm things up…

What a world we live in. The Banks perform like morons, lend money that can never be repaid, throwing good cash after bad – then, who can really honestly say why, we give ‘em shitloads of cash as the economy goes to hell in a handcart.

Well, it we didn’t bailout the banks, sez accepted wisdom, they would have collapsed. It would have been chaos. It would have undermined faith in our financial services sector.

Is that right?

Does that mean our banks have the “right” – like a God-given right – to act as if they were total fukwits? Not only that. But having lost shitloads of cash, the taxpayers underwrite those losses, and the tossers all slap ‘emselves on the back, and payout bonuses all round!!

Who are the real idiots, do you think?

Going back to poor old Iceland. They’ve recently released a report on the collapse of their three major banks. This has revealed a number of cases of “potential illegality and acts of ‘gross negligence’ within government preceded their demise”.

Ummm. The report alleges there “was possible share price manipulation and exaggeration of asset values within the Kaupthing, Glitnir and Landsbanki banks.” It also suggests that the three banks were controlled by five investors who had ‘unlimited influence’ and pressured the banks to make loans to their companies and friendly clients…”

Doesn’t seem possible, does it?

“Among those alleged to have received ‘excessive’ loans were property entrepreneur Robert Tchenguiz who received £1.4 billion, retail tycoon Jon Asgeir Joannesson and former chairman of Landsbanki Bjorgolfur Gudmundsson. The report said: ‘We consider that Kaupthing’s loans to Robert Tchenguiz and companies have been in excess of that which could reasonably be considered a commercial assumption. Rules on large exposures were not followed.’ The report goes on to accuse Iceland’s former prime minister Geir Haarde of acting with ‘gross negligence’ and claims former Icelandic central bank manager David Oddsson refused help from Bank of England governor Mervyn King.”

But there are bigger problems highlighted by this crisis worldwide:

Well, I know coz of the ash spewing from Eyjafjöll I can’t fly off anywhere today, but I can consol myself with the knowledge that the proceeds of organised crime were “the only liquid investment capital” available to some banks (worldwide) on the brink of collapse in 2008. Antonio Maria Costa, head of the UN Office on Drugs and Crime, said a majority of the $352bn (£216bn) of drugs profits was absorbed into the economic system as a result of the worldwide banking crisis…

Bit hard on the Colombian drug cartels, eh, what? Still, we should realise from all of this, it’s organised crime generates these hundreds of billions of £s and $s and €s – and as we all know, it’s money makes this world go around. Crime is also one of the biggest growth areas in wealth generation…

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