Zombie Banks: How Broken Banks and Debtor Nations Are Crippling the Global Economy

[marmar]

from truthdig:



Decade of the Living Dead

Posted on Mar 15, 2012
By Nomi Prins


“Zombie Banks: How Broken Banks and Debtor Nations Are Crippling the Global Economy”
A book by Yalman Onaran


Yalman Onaran’s new book, “Zombie Banks: How Broken Banks and Debtor Nations Are Crippling the Global Economy,” makes it clear. The practice of subsidizing zombie banks (those that without support would be dead, but with support are the “walking dead”—sucking at our economic flesh through endless government life support), which began in the U.S. and was adopted in Europe, has dire ongoing economic implications for the global population. Onaran’s highly engaging prose is sometimes amusing, always scary in its content and imminently accessible to an economic layperson. He combines his considerable journalistic skills and powers of insight so concisely that the book can be read and digested in one or two sittings—depending on how much your stomach can take.

Onaran, a senior writer at Bloomberg News, admits right away that “although as a reporter I shy away from reflecting my own viewpoint in the articles I write, in this book, I did not pull any punches.” The result is a hard-hitting, exhaustively researched, passionately argued book.

Former FDIC Chairwoman Sheila Bair states in the book’s foreword, “By propping up failing firms, we penalized the well-managed institutions and interfered with the basic function of the market.” She warns, “Governments around the globe continue to nurture and support a bloated financial sector built around an unsustainable model. …” And that is the problem—the model is unsustainable, yet politicians and central bankers continue to attempt to sustain it.

Onaran takes us on a global and historical journey of zombie banks, dotted with colorful anecdotes and searing analysis. He contextualizes zombie banks and Japan’s lost decade. Reading these chapters, I was reminded that we are already five years into our own lost decade, with no end in sight. ................(more)

The complete piece is at: http://www.truthdig.com/arts_culture/item/decade_of_the_living_dead_20120315/

[xchrom]

1. du rec. nt

[saras]

2. "unsustainable, yet politicians and central bankers continue to attempt to sustain it."

As for the politicians, it made them fucking millionaires - what do you expect?

Without it, they would be as poorly paid as any other mid-level manager.