EYE-BALL on – Are we all so BLIND – so blind as to not want to see!!!

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Title:

Are we all so BLIND – so blind as to not want to see!!!

Introduction:Over many years this author has fired many barbs across numerous Business and Industry Groups – so many in fact that the fear is now nobody takes any notice anymore.

The thinking and writing and the ‘barb’ content is always delivered on a macro scale – way above what sheep see and want to eat – way up higher – so high that only eagles can soar – so high that the prey they seek is so easy to find you only have to look in the right places.

It can be a lonely flight – but the purpose and its intent is real.  From these heights – it is easy to see where and why the origins of so many of the World’s problems stem from and that is the bane of a blogger – how do you get your message to people who can do something with the information?

What can be seen from a researches perspective – and height can mean any things – deep and intrusive investigative probing often spikes soft underbellies – and so it is when the ‘eagle’ soars … height or depth allow you to see the bigger picture and with BANK’s that picture is at the root of all evil that tramps its footprint across this globe.

In a word – “GREED” – in another word – “SELF-SERVING” – be that two words …but in essence they are the same – opportunity knocks and where honourable persons would never be tempted – the World has become this place where honour has been abandoned.  Nobody but a few really care, or take to time to consider who might lose when they take that bribe – or when they cover a loss for their own mistake by charging good customers extra to make up for that loss and a bit more to make a profit.

When I was first a Banker – Commonwealth Bank, Australia 1974 – the only thing that mattered according to my then Bank Manager was ‘customer service’ – we would spend three mornings a week on staff training and the theme was always ‘customer service’ and how it can be improved.

Little did I know about Banking then compared to what I know now – it was only when I became a wretched Merchant Banker and a Treasurer with responsibility for a $500 million portfolio some 13 years later that I began to understand what Banking really is.

Those first years were also a time when Bank Managers were a respected breed – they were always welcomed on ‘LIONS’, ‘ROTARY’ and other Community organisations – they were generally well liked within the local Business community an they had the customers interests at heart when lending them money.

40 years later – the Bank Manager has long lost his community standing and as a result the BANK’s themselves have made the Branch Manager some lowly representative that never gets to interface with the broader community – and well they deserve that cower’s crow.

The essence of Banks and what they represent today is a far cry from who they were and how they looked after customers 40 years ago.

The Lesson:

In 2008 Lehman Bros went under – it was a defining moment for financial markets in so many ways.

Initially, US Government Regulators thought it would allow blame to be directed where blame was due.  It was the right thinking at the time.

The lesson being taught – that being to try and make the Financial Markets and their mega rich boss’s – all pause, take stock and be accountable for the risk profiles they were imposing on the Global Financial system.

What followed was a response that nobody really expected – and that was as defining a moment as there ever was in the history of Financial Markets.  Nobody saw the fallout that came like a tsunami without warning in the death of night when ‘counterparty risk’ and ‘contingent liability’ became the ‘fear’ of the market.  Everybody had been operating in a vacuum as relates to ‘derivatives’ and their inherent risk underbelly.

The market grew up that day – and just as quickly the US Regulators and the ‘Street’ knew the ‘Lucifer-Genie’ had been let out of the bottle.  Allowing the markets to self-regulate and deal with the ‘Lehman Brothers’ meltdown – meant everybody became exposed and the rush was on to contain that exposure and put defence barriers in place to protect themselves.

Within days the contagion spread and the ‘insurers’ – i.e. Fanny Mae Freddy Mac qand AIG to name a few – who were offering the protection – also failed and it was then realised that everything and everybody was fighting for survival as a giant ‘black-hole’ began to form – nobody was immuned.

From that point onwards – Central Banks have been about survival and to try by all means fair and foul to keep the Global ‘black-hole’ at bay it is futile and as the fear spreads – so does the exhaustion of means to fight the fire …

What did we Learn?

To review any of the lessons we may have learnt – we have to go back to the Oct ‘87 crash – a month that saw the market fall some 30% in a single day on the 19th Oct ’87.  For the month the DJIA had a high of 2,662 and a low of 1,616 – at its lowest the market dropped some 40% – the close of the month was 1,938 and the recovery was already under way.

On a long-term DJIA chart -[ see below] – this correction hardly rates a mention – but for all historians, avid chartists and fundamental thinkers – it was the “beginning of the beginning of the end” – to quote a famous Winston Churchill line that defined what D-Day represented to a World watching and wanting victory.

This Oct ’87 market correction was so emotionally charged that Regulators and Governments had to pull out all stops to save the Financial system.  From that day onwards – the market now has to stop trading for a period if it falls – the Regulators put ‘breakers’ to stop the emotional selling the markets sometimes draw – no limits were placed on upside moves – just the downside.  This was madness we all cried – why protect a self regulating market form the hard sells it needs to expose the greed and corruption – why place ‘breakers’ to limit the losses but not the gains?

This same lifeguard work has stayed in place despite the GFC crashes … it proved useless in the end – but did prolong the ‘bull-market’ – there can only be one to blame for the GFC mess – and that sits squarely at the Regulators and the greed the Banks used to fatten their shareholder returns.

We then had the late 90’s Asian crisis, and the after-shocks suffered post Sept ’11 2001, and then we arrived at the pinnacle of the mountain that had no backside – the 2007-08 GFC and its continuing fallout.

The ‘props’ used in every one of these crisis’ was exactly the same – Central Banks and Regulators using printing presses to make money.   All in the hope that dreams remain alive – that civilisation continues as it has been – that the ‘haves’ can maintain their status and prevail to continue on with their ‘capitalist’ concepts and ideals.

From Oct ‘87 onwards – the fate of the Financial Markets have been set on a path to their eventual self-destruction – the band-aid usage was never going to remedy the heart-attacks the markets were enduring – there will be no avoiding what is yet to be endured – it cannot be altered in the same way as when the time comes for the ‘big earthquake’ as it descends on San Francisco – the carnage will be as devastating.

One is a Natural disaster – the other man made – one is a freak of nature – the other could have been avoidable if smart people acted in a way that allowed the markets to be punished for their ‘greed’ and ‘avarice’.

Successive Governments have rallied the Fed Reserve to give them growth and prosperity – all in the name of re-election – what can the Central Banks do in the face of such demands?

The market lows during the Oct ’87 crash have never been revisited – before this GFC is finished – those lows may be welcome as the crash takes us back to the beginnings.

The legacy of the actions of weak and fanciful past Leaders – have exposed the largest share of the wealth of the world – Central Banks and their Governments of all Western Nations – developed China, India and South America of the emerging Nations and all their populations – to a ‘death-roll’ in a ‘debt-burden’ constrictor – a python that will squeeze untill it is spent – until debt causes war – death and destruction as many historical era’s have demonstrated.  It will be a slow and painful death that has you vividly conscious and aware of your inevitable demise – the movie ‘On the Beach’ will seek like a heaven when compared with what is still to be endured.

The Benefactors:

Looking back – if shareholders were not a protected species during the ’87 crash – and if the Banks had of been left to fail – and if the wealth of the world disappeared in the smoking ashes of the greatest gambling pit the World has ever known – i.e. ‘The Stock Market’ – if it had of been allowed to fail – what then followed during the next 20 years of wrath, greed, sloth, pride, lust, envy, and gluttony  would not have been exposed.

That 20 years of markets were everything from property, food, commodities, and all other essential human needs spiralled in inflationary cost terms – i.e. a barrel of oil in the 80’s was less than $US15 – a loaf of bread less that a US$1 – a mean average four bedroom family home US$150k, and on it goes …

The greatest price escalation happened in the US Stockmarket – from lows of 1600’s (1987) – it peaked above 14,000 (2007)– fell to 6,500 (2009) – and now resides above 11,000… Gold rose from US$300 to US$1,900 and currently sits above US$1,600 – and the death war called ‘The Game of Banks’ and their cancer spread still holds sway – still dictates under the Banner that says – ‘Too Big to Fail’ – what are Leaders to do?

The relevance of all this price movement comes down to currency value – trade terms – and the free world and its free will to challenge the limits of the World – how far can we go before we realise we have over-extended – have reached beyond all reasonable limits – the future is and will be about containment and reduction and who do we ask to reduce their family size – the house size – their wage cost?

Are the lives we all live any better – do we live better for the material possessions the debt has purchased – is there more joy in our lives because of these ‘things’– is life’s purpose more meaningful and more fulfilling – have we taken care of all our brothers and sisters any better – do we have a more charitable intent due to our excesses – have we preserved what we inherited for future generations – do we do the right thing – are our Leaders smarter and more serving – all these questions have no defining answer in the positive.

The morality list these questions pose is immeasurable and the scale of crimes on the back of these actions is unfathomable.

Summary:

Whilst a child dies from poverty every few seconds – the world can never think it has advanced – we are only as strong as our weakest link and whilst most of us treasure selfish wants, and material needs over human dignity and suffering – our kind deserve less and less to be the caretakers of this planet.

The whole of our society and its measure and performance is now structured around various sets of statistical numbers released every month or quarter – all to allow the speculators with the master keys to all our life savings to use to ‘punt’ on financial markets.

Currencies, Interest Rates, Equities, Derivatives, Futures, it’s all a pool of incestuous wanton ego driven good for nothing zero sum ending game.  Someone wins – someone has to lose –

Why should China be allowed to keep its currency so low to advantage their own terms of trade when other Nations play a game of equitable fairness – why is the African rim allowed to be run by cruel and barbarous Dictators that are puppets to Western influences and bribes?

The tentacles of corruption are at the highest levels of ‘deal-making’ and is so far widespread the cancer it breeds is terminal.

Swiss Banks are the most craven of establishments in the World – their wealth is derived from the proceeds of crimes – from Drug dealers to Mercenaries and Arms dealers – to Dictators and corrupt and corruptible  Corporate CEO’s, Government Ministers and their Lobbyists.  All who are  happy to secrete their ‘booty’ in numbered and faceless accounts hopefully hidden from prying eyes.

There are many others – but the Swiss are the purveyors and leaders of this silent and secure Banking existence where a ‘nod’ is as good as a ‘wink’ and everybody understands and comprehends the ‘don’t ask’ policy where what your don’t know can’t hurt you.

Who knows how much of the Wealth of these Banks comes from sudden deaths and unclaimed monies … and monies stolen from populations who are living under threat of death all the time if they were to protest and raise questions about the corrupt behaviour.

It is a World where Banks facilitate the corruption and therefore are corrupt by association.

These events you would think would teach us the lessons we need to learn from – yet why do we allow the same mistakes to continue?

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The EYE-BALL Opinion …

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  1. Herman
    October 18, 2011 at 7:44 am

    As always many many things. Many people don’t listen, don’t care because they are in a happy place, maybe wanting to stay in a positive place. Maybe it is just style wanting to know the issue but not really go there. Some are forced there.

    Last week I mentioned Rene Descartes. As a philospoher he wanted to try to remove emotion to observe science. Is there a natural law, or measurable occurence? How much of anger is a defensive mechanism, or denying what might be more scientifically approached.

    In one of your observations above it is a layer element or process. Science is based on rational assumption, and if the assumption fails, what then? You say decadence in Banking was in by 1987. This is the era of Reagonomics and Thatcherism. Remove the centralised ownership and logics that addressed the worlds problems during the depression and immediate post world war II era, and allow capitalist logics to pervade. This is now termed supply side economics. As always it had wonderful attribute through the 1990’s and early 21st century until all of the excesses brought everything to a screeching halt with sub prime, the GFC.

    In metaphysics this has many names, like yin and yang. In growth lies desecration, from evil comes good. It is an ongoing process. Evil and Good are twin souls. You can not destroy evil, because you will destroy part of everyone of us. The world will evolve, it is only a matter of at what cost, and what is the scintilla for change?

    Most importantly stay with Brownian motion. A butterfly flapping its wings in the Andes can create an avalanche in the Himalayas. Go you butterfly!

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