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Reply #19: Why should the banks losses be socialized when their profits were privatized? [View All]

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suffragette Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Jun-22-11 01:35 PM
Response to Reply #9
19. Why should the banks losses be socialized when their profits were privatized?
The banks and financiers gambled on risky investments, raked in the profit and now want citizens of the countries to pay for the risk the bankers took.

There have been, and still are, shady games going on, but a major role in these games has being conducted by the same people who created this situation - the financiers.

And now they want to use the disaster they have created as cover to grab Greece's public land and assets.

Let's take a closer look at some of them, shall we?

German Banks Reported Still to Be Taking Risks
Published: November 25, 2010

FRANKFURT The Bundesbank, the German central bank, said on Thursday that the countrys banks were better off now than they were a year ago, benefiting from a strong domestic economy. But, the bank said, German institutions continue to engage in risky practices that make them vulnerable to a rise in interest rates.

Thanks to stable returns and improved capital, German banks have increased their ability to withstand risk, Andreas Dombret, a member of the central banks executive board, said Thursday at a news conference. But as before the German bank system still displays vulnerabilities and structural weaknesses.

Despite Germanys economic growth, its banks are among Europes weakest. Moodys, the ratings agency, ranks the average health of German banks below those of most other Western European countries as well as nations like Brazil, Jordan and Mexico.

In its annual financial stability report, the Bundesbank warned that German banks had increased their dependence on short-term financing, a profitable but risky practice because institutions can be caught short if interest rates rise.

Deutsche Bank profit almost a record

Deutsche Bank, the biggest German bank, today posted the second best quarterly profit in its history, owing to a combination of strong investment banking activities, retail banking and asset management.


'We will continue to invest in our franchise and are confident that we will deliver on our ambitious target of income before income tax of 10 billion euros from our business divisions,' Deutsche Bank chairman Josef Ackermann said.

Deutsche Banks Chief Casts Long Shadow in Europe

From this seat at the nexus of money and politics, Mr. Ackermann, for better or worse, is helping to shape Europes economic and financial future. He regularly advises politicians and policy makers on the most pressing economic issues of the day: the smoldering debt crises in Greece; the widening gulf between the economically strong nations of Europe, like Germany, and weaker ones like Ireland and Portugal; and the future of Europes economic and monetary union and that grand ventures most manifest expression, the euro.

But it is no secret where Mr. Ackermanns financial allegiances lie: with the banks. For instance, he has insisted that providing some sort of debt relief for Greece would be a huge mistake. Such a move a restructuring, in banking parlance would involve writing down Greeces debt, which is now more than 140 percent of its gross domestic product, deferring payments and cutting interest rates.


Mr. Ackermann, like many of his counterparts in the United States, has also argued against tighter regulation of the post-crisis financial industry. His visibility as an industry advocate stems in part from his chairmanship of the Institute of International Finance, an association of the worlds biggest banks, including American ones like Goldman Sachs, Morgan Stanley and Citigroup. The group has released studies contending, among other things, that compelling banks to reduce their use of leverage a move that would almost certainly reduce banks profits would cause a credit crunch. Thats ridiculous, some economists counter.

Most of the arguments made by the bankers and the I.I.F. in particular are just fallacious, says Martin Hellwig, an economist and a director of the Bonn branch of the Max Planck Institute.

So, German banks are making record profits, still making risky decisions and a major CEO of one of the largest banks is against regulation and for (other people's) austerity and forcing a nation's citizens to sell off its publicly held assets.
Sound familiar, yet?

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  -Greece: We will not suffer any more so that we can make the rich even richer. midnight  Jun-22-11 11:50 AM   #0 
  - Class Warfare on a Global Scale  fascisthunter   Jun-22-11 11:53 AM   #1 
  - Absolutely, and that should be the way workers should fight back. nt  TBF   Jun-22-11 02:33 PM   #26 
  - TPTB are "third-worlding" everyone these days. Wreck the economy, then "helpfully" suggest  Mist   Jun-22-11 11:54 AM   #2 
  - A-fucking-men to that!  FiveGoodMen   Jun-22-11 11:55 AM   #3 
  - Hey Greece!  hifiguy   Jun-22-11 11:56 AM   #4 
  - link to article  n2doc   Jun-22-11 11:57 AM   #5 
  - Thank you.... Also a another link....  midnight   Jun-22-11 12:10 PM   #10 
  - I have a friend living in Greece right now and this completely backs up his take on things  LisaM   Jun-22-11 12:01 PM   #6 
  - I remember going to a little cafe in Santorini. They didn't provide a check  jtown1123   Jun-22-11 12:07 PM   #7 
     - i'm sure the rich are cheating... but so is everyone over there  formernaderite   Jun-22-11 01:42 PM   #20 
     - Yeah, poor people are known for owning hotels and businesses in touristic areas  liberation   Jun-23-11 11:39 AM   #55 
     - Excatly, sales tax evasion...  PoliticAverse   Jun-22-11 01:52 PM   #25 
     - I've had the exact same experience,  IndyPragmatist   Jun-23-11 07:43 AM   #39 
        - "But I guess blaming the rich is much easier that doing research and having an accurate assessment"  liberation   Jun-23-11 11:38 AM   #54 
  - Link???  Renew Deal   Jun-22-11 12:09 PM   #8 
  - Link.....  midnight   Jun-22-11 12:11 PM   #11 
  - That's the repost by FDL  Renew Deal   Jun-22-11 12:14 PM   #13 
  - I'm sorry can you let me know what link your referring to. Thanks..  midnight   Jun-22-11 06:50 PM   #32 
     - When you provide a quote, you must provide a hyperlink to the article  riderinthestorm   Jun-22-11 06:54 PM   #33 
        - Thank you for your gentle reminder....  midnight   Jun-22-11 09:42 PM   #36 
           - Peace. And a kick for your most excellent OP. nt  riderinthestorm   Jun-23-11 11:09 AM   #53 
  - Greece was living on a credit card.  Ikonoklast   Jun-22-11 12:09 PM   #9 
  - I can't help but think that will be the story of America...  midnight   Jun-22-11 12:12 PM   #12 
  - Sounds like you are describing the u.s. and china...  ret5hd   Jun-22-11 12:22 PM   #14 
  - You see clearly.  Jackpine Radical   Jun-22-11 12:30 PM   #16 
  - maybe those things don't matter to that poster  fascisthunter   Jun-22-11 04:04 PM   #28 
     - I don't think posting on the interwebs pays that well...  liberation   Jun-23-11 11:45 AM   #57 
  - Yes they were living on credit. But why?  Jackpine Radical   Jun-22-11 12:30 PM   #15 
  - The tax cuts were due to the neo-liberal government Greece had during a big chunk of the past decade  liberation   Jun-23-11 11:51 AM   #58 
  - Did someone hold a gun to the bankers' heads and force them to lend..  girl gone mad   Jun-22-11 12:52 PM   #18 
  - I think part of this problem was hidden... Something that Elizabeth Warren  midnight   Jun-22-11 06:40 PM   #29 
  - Why should the banks losses be socialized when their profits were privatized?  suffragette   Jun-22-11 01:35 PM   #19 
  - Your tax dollars going to foreign banks: listen to this...  midnight   Jun-22-11 06:48 PM   #31 
     - Three of the banks that received AIG bailout $ are the most involved in Greece  suffragette   Jun-22-11 08:36 PM   #34 
        - I'm not familiar with the lists of European Banks taking a Greek hair cut,  midnight   Jun-23-11 10:41 PM   #70 
           - It took a bit of digging to find the above info  suffragette   Jun-24-11 08:49 AM   #75 
  - Define "they" nt  sudopod   Jun-22-11 01:52 PM   #24 
  - Ever read 'The Economic Hitman?'  femrap   Jun-22-11 10:40 PM   #37 
  - Hmmm... Gov. of Idaho is inviting the Chinese to build an  midnight   Jun-23-11 10:44 PM   #71 
     - The Chinese own us....  femrap   Jun-24-11 12:28 PM   #76 
  - You seem to think there are only two solutions  fasttense   Jun-23-11 06:21 AM   #38 
     - Which reminds me of the old saying:  Buns_of_Fire   Jun-23-11 10:55 AM   #48 
  - Here is the original blog  arikara   Jun-22-11 12:37 PM   #17 
  - This time it's German bankers conquering Europe...  JCMach1   Jun-22-11 01:45 PM   #21 
  - Most of the pressure is coming from French bankers  FLPanhandle   Jun-22-11 01:50 PM   #23 
  - Euro interests are running smack into individual country politics.  FLPanhandle   Jun-22-11 01:47 PM   #22 
  - So lets say Greece quits the EU  rbixby   Jun-22-11 03:54 PM   #27 
  - If Greece defaults, the banks can't do much except not lend them any more money  FLPanhandle   Jun-22-11 06:42 PM   #30 
  - Guess they shouldn't have let the bankers steal.  aquart   Jun-23-11 10:59 PM   #73 
  - K&R ordinary citizens suffer so banksters get richer  amborin   Jun-22-11 08:38 PM   #35 
  - Oh, but the Cassandras crying, "NWO!" decades ago were fools in tin-foil hats, eh?  WinkyDink   Jun-23-11 07:46 AM   #40 
  - K & FuggingR  malaise   Jun-23-11 07:47 AM   #41 
  - kalo kai eucharisto  davidwparker   Jun-23-11 10:17 AM   #42 
  - "immense reserves of natural gas under the Aegean sea"  davidwparker   Jun-23-11 10:20 AM   #43 
  - Read "The Shock Doctrine"...its basically word for word what is STILL happening.  Moostache   Jun-23-11 10:24 AM   #44 
  - All the Chicago boys.  Jakes Progress   Jun-23-11 10:40 AM   #46 
  - k&r  blindpig   Jun-23-11 10:33 AM   #45 
  - Fat Cats. Wake up.  Jakes Progress   Jun-23-11 10:42 AM   #47 
  - Thank You!!!!  fascisthunter   Jun-23-11 10:59 AM   #49 
  - Once again Greece defends the west in a modern Thermopylae!  rwsanders   Jun-23-11 11:00 AM   #50 
  - Very un-American attitude they have there.  NorthCarolina   Jun-23-11 11:05 AM   #51 
  - They are on the right track. Our economists - disaster capitalists -  jwirr   Jun-23-11 11:09 AM   #52 
  - Labor Unions Call for Gen Strike June 28-2  amborin   Jun-23-11 11:42 AM   #56 
  - what don't people understand  bossy22   Jun-23-11 11:53 AM   #59 
  - Because they're all connected as part of the EU.  riderinthestorm   Jun-23-11 04:40 PM   #62 
  - Why do people constantly defend the rich?  white_wolf   Jun-23-11 11:10 PM   #74 
  - Fuck the banks. Besides that there's this:  blindpig   Jun-24-11 01:19 PM   #77 
  - Seems like the Greeks are drenched in self-pity... as if somone did this to them  robcon   Jun-23-11 11:56 AM   #60 
  - grover thanks you for your efforts.  Jakes Progress   Jun-23-11 04:08 PM   #61 
  - That caused a big LOL here.........  socialist_n_TN   Jun-23-11 04:55 PM   #63 
  - norqs instead of narcs.  Jakes Progress   Jun-23-11 07:42 PM   #66 
     - OOOOOO! That's good too!  socialist_n_TN   Jun-23-11 10:45 PM   #72 
  - +1 and  hifiguy   Jun-23-11 04:58 PM   #64 
  - Just as we were lied into war (against popular will)..  girl gone mad   Jun-23-11 08:02 PM   #68 
  - They are correct  malaise   Jun-23-11 05:06 PM   #65 
  - "What is going on in Athens at the moment is resistance against an invasion"  sabrina 1   Jun-23-11 07:56 PM   #67 
     - Well, I think a start would be to have a worldwide  socialist_n_TN   Jun-23-11 09:04 PM   #69 

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