Nov 14

The fraud from the financial industry’s lack of regulation and naked greed may conservatively be said to have cost 1000s of lives – just in extra suicides. It may also be conservatively said their hold over Govt and naked subsidy schemes like Help to Buy, PFI, Bail outs, tax dodging etc cost more each year. Then add in people illegally foreclosed on, MF Global customers, defrauded by the multi trillion LIBOR fraud and then consider FX rigging, Energy market rigging and even suggestions of commodity market rigging. Mis-selling of Credit Derivatives and PPI and many other frauds and chicanery can be added on top. Banks are still essentially unprosecuted unrepentant and unchanged enterprises. Not one strata of their business from Mortgages and credit cards to Investment Banking is not dripping in fraud.

Into this JP Morgan decides to troll people with a talk on leadership, #AskJPM. Ask a financial bod what happened and he will say JP Morgan do not understand social media. I would argue they do and just wished to laugh at the powerless to do more than watch them pay a relatively paltry fine, price of doing business and moving on. I am sure they howled with laughter as the righteous ripped them on Twitter which incidentally was itself massively over sold.

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Mar 28

I really can’t separate fact from fiction over Cyprus indeed most people seem to argue both ends against the middle. Like me many argued banks should go bust but now that seems unpalatable to people when they lose out. Instead of arguing Cyprus is better off without such banks before they lost any more money they hold pity parties for the victims of their preferred solution! The modern failure to crack eggs is the harbinger of terrible Govt – see 10% tax rate and covering up its repeal.

Cyprus without its main industry should maybe consider leaving the Euro. There are many advantages to an over valued currency but lower employment and growth are seeming by-products. Then again devaluation has just fed deflation in the UK but that is in the teeth of a Banker supporting monetary policy with the added twist of stupid Austerity.

Regardless. The message of Cyprus is never to put money in a bank. You are better off with it insured under your mattress. Scenarios where bank deposits become worthless may seem far fetched to anyone who cannot understand history. Yet what is the differences in holding currency at 0% or a 0.5% bank deposit in an institution which loses money hand over fist and engages in massive fraud?

Indeed without deposits banks will have to offer interest if the Govt would stop pumping them full of cash. Either way feeding the bottom feeders by putting money on deposit at 0.5% is hardly a thing to admit to.

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