Wednesday, October 26, 2011
Gupta Facing Criminal Charges; Irish Banks 2008 Disaster
The Wall Street Journal is reporting this morning that Rajat Gupta will surrender himself to authorities today.
The crime, this ex-high flyer has committed? Insider trading.
He is also a Goldman Sachs board member. The unravelling of this case will bring light to the entanglements of Goldman Sachs and its dealings throughout the financial system.
Let's hope a few big-wigs in GS are found out to have broken the law and more critically are punished for their transgressions.
IRISH BANKING DECISION in 2008 WAS A DISASTER
A presidential candidate in the Irish election spoke at length on the floor of the parliament about the Irish government's disastrous decision to GUARANTEE ALL BANK DEPOSITS back in 2008.
Michael D. Higgins speech (see link below) illustrates the passion one lone voice exhibited at a time when most were CRAWLING UNDER ROCKS of political expediency like the vipers they are!
This decision sent a message to the arrogant bankers that "if you fuck up, we'll bail you out through the dumb taxpayers".
Now three years later, the IMF is taking over the country and dictating policy to the Irish people as to what they can or cannot do, what they can or cannot own as public assets and more critically, the terms of the loans lent to the very banks and government operatives that CAUSED THE ECONOMIC FUCK-UP in the first place.
While the people of Eireann are distracted and diverted by the silly presidential election, the REALITY POINTS TO PEOPLE BEING TOSSED out onto the street.
In the early 1870s Michal Davitt's Land League fought absentee land lords as they raised the rents on tenant farmers, tossing them and their families out onto the street.
That was the law then. But Davitt fought and instituted the Boycott and together with his tenant farmer's network his Land League succeeded where many had failed.
Even Gandhi was influenced by the Boycotts instituted by the Land League Davitt's devotees.
Why is all of this relevant today, more than 140 years later?
Because according to the recent Keane Report, swamped in an avalanche of trivial presidential crap by the Irish media, tens of thousands of families are being tossed out of their houses.
Banks that have themselves been BAILED OUT by taxpayers are taking possession of houses and tossing the previous owners out onto the street. Instead of the picture above from the 1850s where tenant farmers were being EVICTED BY THE BAILIFF, the banks have taken the job of the bailiff of old!
The Keane Report (see links)
The full report can be accessed on Ireland's national broadcasting television channel RTE (see link)
Declan Keane of course works for KPMG the accounting behemoth and by default holds the opinion of the banks. Even though they were bailed out, the report suggests that, "a blanket debt forgiveness scheme is not recommended" and that "unfortunately it is inevitable that people will lose their homes".
The 44 page report suggests that in the coming years, 2012 and 2013, the current 45,000 households in arrears will increase resulting in more repossessions and undoubtedly families losing their houses.
This is a national DISGRACE!
But it will quickly EVOLVE INTO A CRISIS as time goes on and the number of households fall further into arrears and delinquency.
One "solution" offered is a Deferred Interest Scheme (DIS). In other words a household who CAN'T pay the CURRENT INTEREST is expected to pay it in the future. This assumes the economic environment IMPROVES DRAMATICALLY, a rather magical thought.