Monday, 2 November 2009

Getting me down, Part 1: The Banksters Are Back!

A year or so ago, the global financial system was facing its Dunkirk, with most of those oh-so-clever financial 'products' which were bringing it to its knees playing the role of the Luftwaffe's Stuka dive bombers.

'Dammit Squiffy- Collateralised Debt Obligations at 11 O'Clock!'

Now the strutting peacocks of Wall Street and the Square Mile are back, thanks to the largesse of the taxpayer, of course. Like George Orwell, who saw the retreat from Dunkirk as the signal for an English Revolution, only to see the 'Blimps' get back into control, we have seen the chance to change things dissipate bigtime, at least for the moment. In Britain this is much to do with the lack of a serious Left; in the US the election of Obama alleviated much of the mood of panic which existed there last Autumn. In the US it also helps the status quo that the Obama Administration is full of Goldman Sachs alumni and the economics profession has been largely captured the Federal Reserve. Indeed, a case can be made for disputing how much a crisis there was last Autumn and how much it was a confidence trick played by the banksters on the rest of us.

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