Tag Archives: Matt Taibbi

LIBOR: The Market is a Fairytale

CivilTongue is on hiatus for one week. Check back next week for more civilized discussions of current issues impacting us today.

Should you care about LIBOR? Not unless you’ve used credit – for home loans, business loans, credit cards, student loans, anything with an interest rate.

Here’s the short of what the LIBOR scandal means for us that have used credit: we’ve been used as a spring of wealth. We the People of the United States and the entire globe, with our earned money have been covering for huckster book cookers. The implications are that most or all major, multinational banks are conspiring and colluding to fix the market at its very basic building block level. The government in London is implicated, possibly most major governments are also guilty.

It looks to be an extremely extensive web of deceit. The market fixing done cannot be done alone – Barclay’s has already admitted to fixing – in order for the level of corruption that has unfolded to be true, the likelihood is that all major banks are involved in this type of fixing and scandal.

So not only do banks need bailing out but they need bailing out even though the game was rigged in the first place. This is despite the fact that they have unlimited legal, financial, marketing, lobbying, security, and public relations resources. Still, they produce no actual product and rely on those of us who actually provide goods and services to the globe to keep the spigot of money flowing their way. The greed and corruption also seems unlimited.

This scandal exposes, not just a corrupt bank, but the very mechanisms by which we are told “the Market” works. Those mechanisms have been found to be figments of the imagination, not even rusty or broken, but a fairytale that bankers have been telling each other – and the rest of us have been betting the farm on them.

Matt Taibbi and Dennis Kelleher explain in more detail:

Once again, it is up to the People to demand that these stories get reported in the media (go ahead and make a request), and that we keep the pressure on by asking candidates about it, asking our representatives about it, and making it an issue while Barclay’s is spilling the beans. These organizations have been left to police themselves, instead they have reinvented pillaging our villages – and been unbelievably successful.

This is not just another scandal, it is about real dollars that used to be yours and now they are not. And those are the same dollars that are buying government influence, and the same dollars that pay to keep labor conditions racing to the bottom while sky’s-the-limit for elite profits and living conditions.

It is easy to write this off as another boring example of how we get screwed over by “the system”. It’s common to hear, “they’re all crooks!” as a general reference to anyone in business or government, but that is the white flag of apathy. It is music to “their” ears to hear a meme that encourages shrugging it off as business as usual.

Yes, it has been, “business as usual”, but the fat financial dragon has exposed its underbelly. Are we going to yawn our way through the opportunity to demand more accountability, transparency, and responsibility? Once again it’s up to us. Learn more here and here and here.

Advertisements
Tagged , , , , ,
Advertisements