Archive for the Banking category

World Wide Credulity Crunch

by 10k films on September 25th, 2011

By Golem IV, September 22, 2011

Does anyone anywhere believe anything they are told, on any subject, by any government official, financial expert or banker? Beneath all the outright lies, hopeless spin and half truths there is a more fundamental and corrosive problem. WE DON’T BELIEVE YOU!

The global reserves of credulity have been pillaged and squandered. We have been told too many times that this or that economy was fundamentally sound, that problems were contained, or would definitely be over by Christmas, that Spain was not Greece, Italy was not Spain, that Ireland’s banks were fixed, that we were all in it together and that all the banks are superbly well capitalized.

Even the banks don’t believe. Each protests that they are fine and yet none of them trust each other and won’t lend a dime.

We have found ourselves living in an entire economy of lies. Borrowers lied. Lenders lied. Insurers insured the lies but were lying themselves. The regulators who oversaw the lies lied about how sound the lies were and the people who rated the lies were the most AAA of liars themselves.

Lies like debts can be printed up at will. In fact most of what is being printed in banks and newspapers are all lies related to each other. But what none of the liars remembered is that lies can only be redeemed if there is an equally endless supply of credulity. And although we frequently lament the stupidity, cupidity and cowardice of ‘people’ even they have a finite supply of credulity. And it has been exhausted.

Credulity cannot be printed up, borrowed or electronically magic-ed into existence. There is no EU stockpile or emergency supply. Once its gone its gone. And some time ago I think we reached Peak Credulity and it has been in steep decline ever since.

I certainly have none left at all. And that is a problem for those bankers and politicians whose wealth and power is based entirely on the economy of lies. The market for their lies is wreaked and soon to shut entirely. The entire economy of lies is bankrupt.

I want no more lies I want no part in the economy that trades in them.
Give me the truth or go to hell.

http://www.golemxiv.co.uk/2011/09/world-wide-credulity-crunch/

C.W. Comment:

IMF Article 1: http://goo.gl/ib2cH
IMF Article 2: http://goo.gl/8NZT3

The second article (Jarhan/McDonald) tells us that ‘more finance equals more equality’ as we all get a larger share of a bigger pie – i.e. that societies are becoming more equal with the growth of financial innovation. The first article (Milanovic) tells us that, contrary to expectations, “Income inequality has been on the rise—or stagnant at best—in most countries since the early 1980s (OECD, 2008)”, despite the growth of the finance sector.