Who's Got a Turd in His Briefcase?
By JAMES PETRAS
CounterPunch
"......Where is Greenspan, since he started the whole scam with his low interest, deregulated financial markets? The homely hero of all hedge-derivatives-innovative financial scamsters sanctioned, approved and promoted the pyramid swindles. He's off advising Deutsch Bank and suckering the international bankers for $100,000 fees for his failed financial recipes. But for those speculators who made a bundle and left, Greenspan is not part of the emerging turd culture. For them he is still the financial genius who made their fortunes......
Let them lose their pants, writes orthodox Market pundits like Marty Wolf in the Financial Times. "In order to value risk, they should lose properly. To bail them out", they argue, "is a moral hazard." Meaning of course, that if the hype and scam speculators are covered by a Federal Bank bail out, they lose nothing, and will repeat swindling in the future. Bailouts are a formula for financial scam recidivism. So much, alas, for the advice of orthodox market experts. European Central Banks and the US Federal Reserve know what class they represent: Real existing speculator plungers, not textbook risk-calculating value-oriented entrepreneurs, are their reference group. The risk of letting the bad boys sink is that there are too many of them, working in most of the most powerful investment houses, managing too many funds, for the most powerful financiers.
"There are no good financiers and bad speculators", one philosophically inclined fund manager (who is likely carrying a turd) put it, "We are all in this together, if we sink so does the whole financial system." Is this a self-interested plea for financial solidarity, a closet Marxist or a prophet of doom? Nobody knows till we delve into the Black Hole of the financial crisis. That won't happen till the brief cases open."
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