One sees now in Europe the same artificial argument that has plagued Washington since 2007. With almost no one in the ruling elite willing to admit that the guilty party is the whole ruling elite and that the solution is fundamental systemic reform, presumably to be implemented by rulers who did not partake in that guilt, half the elite claims that austerity must be inflicted on the poor (i.e., the thin must diet) while the other half calls for debt-financed growth. Neither bites the bullet to say that, yes, austerity is called for – but it should be austerity for the rich, while, yes, growth is called for – but it should be growth financed by the rich.
*The Emerging J.P.Morgan Scandal – Egregious Mistake or Crime?
- LA Times 5/14/12: “There’s evidence that the department where the Whale worked was, in fact, replicating Morgan’s real-life business of lending to corporations, but using fancy derivatives to do so — creating a “synthetic” bank, as traders would say, without actually lending to corporate customers as real banks do.
- If that’s true, the question is why? To put it another way, if JPMorgan had $350 billion sitting around idle (the sum the Whale’s department appeared to have to play with), why not use it to do something that helps the economy — such as, you know, lending it to businesses? Instead, JPMorgan used the money to buy chips to play in the derivatives casino, which doesn’t help the economy one bit.”
- Bloomberg 5/14/12: The U.S. Securities and Exchange Commission, the Federal Reserve and the Commodity Futures Trading Commission are investigating, according to people familiar with the probes.
- New York Times 5/17/12: Dimon slowly coming clean: “What this hedge morphed into violates our own principles.”