Governments On Both Sides of the Atlantic Try to Put Lipstick on a Pig
We noted yesterday that the big banks have criminally conspired since 2005 to rig $800 trillion dollar Libor-based market.
Barclay’s chairman says that the Bank of England gave explicit approval for the manipulation.
A former Barclay’s executive – who was close to the Libor-setting manipulation – told the Daily Mail that Barclay’s manipulated Libor to make the bank look healthier than it really was, and , and the cover-up led to a slow policy response which prolonged the financial crisis.
This appears to be very similar to what happened in America. As I noted last year:
(Paulson also threatened martial law if Tarp was not passed.)
As we reported last year:
Indeed, the American government’s zero interest rate policy is very much like the British Libor manipulation scandal … it’s nothing but an attempt to breathe life back into the insolvent banks, at the expense of the taxpayer. And see this.
And the “financial reform” laws passed in the wake of the crisis have, in some ways, actuallyweakened regulations of the financial markets, allowed the big banks to get a lot bigger, and haveintentionally allowed fraudulent accounting (and see this).
Likewise, the “stress tests” in both Europe and America have been a total scam … a naked attempt to put lipstick on a pig to cover up the fact that the big banks are insolvent.
By choosing the big banks over the little guy – and failing to rein in the fraud which caused the crisisin the first place – the governments on both sides of that Atlantic are dooming both the financial system and the people to failure.