Investment Banks – Make a wish!

Everyone has probably heard about the Euro and the Greek Debt Crisis that eveyone is talking about.  This is truly a Global Banking Classic.  Here goes the most wonderful story of how to manipulate third world and second world countries economies –  that you will  ever want to consider!

First off, Global Investment Banks (names withheld to protect the innocent- whoever they may be) sell countries like Greece a whole bunch of Credit Default Swaps, Sub-Prime Mortgages, Special Investment Vehicles and the like.  Knowing that the debt default rate on these things is astronomical….the Investment Banks then create Hedge and Derivative Markets “that bet against” Greece and the other countries involved in the original programs.  The Investment Banks know that “Unsustainable” is the word.  They know that all that highly leveraged uncollateralized debt is going to be dumped on an overburdened Global market….that wouldn’t buy that stuff if they had a truckload, trainload or loaded super tanker filled to capacity.

Well, those same or associated Investment Banks are now cashing in on the Hedge and Derivative markets they created to bet against their initial loans in the first place…knowing how stupid those third world countries were when they asked for loans from the IMF or World Bank – and only were able to get them if they invested in those very risky “Special Investment Vehicles” to get the loans in the first place.

Watching  joint sessions of the Banking Committee on C-Span last night was quite revealing as representatives from Morgan Stanley and their ilk all explained with broad smiles on their faces that the days of long term employment for Americans are over and that “everyone” will just have to be retrained in order to get another job.  Our question was:  What job are you going to be retained for Mr. Mrogan Stanley and the like? 

Hopefully, the Tea Party people will start picking on the right suspects:  The Senate, The Congress, The Insurance Companies and the Investment Bankers!  This is all “dirty business” and as the saying goes: “Unsustainable!”

About Ron & Anna Winship

Independent News Producers/Writers and Directors for Parker-Longbow Productions. Independent Programming which includes a broad variety of Political, Entertainment and Professional Personalities. Cutting Edge - a talk the flagship of over 30 URL websites developed or under development. The Winships have been blogging for the Orange Juice since back when nickels had buffalos on them, and men wore onions attached to their belts, because it was the fashion back then.