The Libor scandal in the U.K. threatens to involve a lot of U.S. institutions and will then spread into the Fed who was asleep at the switch, once again, as the banks were stealing. So the Fed has launched a preemptive strike, as they undoubtedly know that sooner or later the investigation will lead to them, saying they took “prompt action” 4 years ago when they saw the Libor swindles. While I hate to use this sad situation as a parallel it unfortunately fits, and that is the Fed did about as much as Joe Paterno did at PSU, they covered up and looked the other way and gave the banks a talking-to.
The absurdly ignorant Tea Baggers want to get rid of the Fed without realizing this is the biggest welfare program in the U.S. for the Tea Baggers’ friends: banks specifically and the rich in general. It wasn’t the TARP bailout that saved the banks, it’s the 14T$ of free money the Fed has given them, basically being the only buyer for their toxic assets and allowing the banks to unload all that crap on the public. No, the Fed needs reform all right, to be reminded it is a regulator, not an enabler of serial criminality. Get rid of it and the banks are all broke the next day, so be careful what you wish for, Tea Baggers.
So the Fed is going to show it took action four years ago. It sat those bad-boy banks down and gave them a stern talking to. Obama tried the same thing, but restrained by Timmy-boy’s chummy protection of the banks, and told the banks the pitchforks might be out for them. Come on, guys, do you think these people care about threats? Do you even think they see public outrage as a threat? You are dealing with the most accomplished and gigantic bluffers in the world who got where they are because they are the biggest and best liars. Nothing but an actually loaded gun against their head with a bank-hater’s finger on the trigger will stop them. Execute a few bankers (which I don’t actually advocate, btw) and maybe you’d get their attention; give them a talking-to, you might as well be giving them a blowjob.
Wall Street has turned into the most privileged class ever in history believing the entire world owes them since we’re to stupid to lock the doors the bankers sneak in to steal our money. Leave a dollar bill out on the table, hey, that’s just offering to them, don’t blame them for stealing it. If you don’t stop them from stealing, it’s not stealing. They own Congress and nearly own the SecTreas, and don’t even mention after Citizens United how they own SCOTUS. They think they are the supreme power on the planet accountable to no one and government is their servant to protect, subsidize, and ultimately bail them out.
So I’m sure the Fed “prompt action” also involved a substantial amount of the Fed grovelling before the almighty lords of Wall Street. The Fed, esp. when Timmy was there, doesn’t question being told to jump, they just say how high and we’re sorry for the inconvenience that you had to wait five minutes before we rolled out the trillions to you.
But it seems like the U.K. may be made of just a bit tougher stuff (after all, they were the one who decided to eliminate inconvenient regulations and taxes to recruit banks to City of London, where plots like the $185B AIG FP theft occurred and maybe they feel a little guilty). So maybe the U.K. will actually have a real investigation, maybe some people will actually go to jail. And it’s going to ultimately pull in all the princes of Wall Street that once again we’ll learn are as crooked as a $3 bill. And, of course, once the storm blows over we’ll do nothing and the Fed will cover for them again.
The banks are like drug abusers. They: a) can’t stop, and, b) don’t realize how this is bad for them. And like many drug abusers they harm many around them before the druggie ends up face down in the gutter. So the banks can’t stop – they are run by people whose supreme skill is greed – these are the Gold Medalists of greed, greed is not only good, greed is the only goal of life. So they will lie and cheat and bribe and use false math and probably kill a few times to keep their game going. And their game can only lead one place. Nature works due to negative feedback loops that inhibit exponential growth which they are trying to ignore.
Ultimately the market really will be self-regulating, as in a complete global crash that brings down everything. The entire banking system is a Ponzi scheme, not just the crooked ones like Madoff, ALL OF IT. And private equity is the jackals of the bunch, really cleaning off the bones after Wall Street has eaten its fill from the body. Finance skims off the top and does no productive work and it must grow or die, so it keeps finding new ways to steal ever larger amounts of our money. And it will fall, someday. Unfortunately their crash will be our cataclysm. We must stop them.
So Fed, instead of CYA, why don’t you admit your complicity and actually do your job and regulate these monsters.