"Finally, the misallocation of capital caused by ECB policy is preventing creative destruction and causing asset bubbles."
This is at the heart of virtually every economic problem globally and if you follow the money you'll find it also has a hand in 99% of the global social ills. Capitalism works if the government plays it's role of referee and the central banks enforce lending standards, both of which are in steep decline after going off the gold standard and have little relevance to whatever economic system is actually in place today.
In “High Financier,” Niall Ferguson touches on the career of Hermann Abs -- and how Siegmund Warburg assisted, or didn’t halt, his post-WW II return to bank. A quote: “We cannot be sure that Abs knew that Deutsche Bank’s gold came in large measure from victims of the Holocaust.”
If I recall, Paul was Siegmund’s American cousin. Paul’s firm led to Warburg Pincus; Siegmund’s was bought by SBC, then merged into UBS. And now CS! I doubt any of them would recognize investment banking today.
It’s sort of ironic that the biggest criminal bank is German, a people known ‘great engineering prowess’ and for strict adherence to the rules no matter how silly like no walking on the grass. The Laws of physics and the Laws of community behaviour are respected but it ends there. Weird.
100-years ago, the biggest shareholder of a bank where I lent money called me to his office.
“I need you to loan Mr. X $Xm.”
“But, sir. The committee has already turned him down for the same deal. He’s Canadian, and the only unencumbered asset in the States is a horse.”
“It’s a cuttin’ horse, a grand champion, and a prized stud! Loan him the money!”
“Uhh. Okay. I’ll need your signature on the docs, but I’ll get it done.”
Two or three weeks later Mr. X calls to inform me that our only collateral died of a heart attack while breeding a mare. Six months later the bank was owned by one of The Big Boys, and the money was never seen again.
When I sometimes have fleeting doubts about the validity behind one of your rants, I think of that story (100% true), and realize that those fuckers in the money centers do the exact same shit, but on an unimaginable scale.
I'll say one thing for you, you know how to do your homework!
"Finally, the misallocation of capital caused by ECB policy is preventing creative destruction and causing asset bubbles."
This is at the heart of virtually every economic problem globally and if you follow the money you'll find it also has a hand in 99% of the global social ills. Capitalism works if the government plays it's role of referee and the central banks enforce lending standards, both of which are in steep decline after going off the gold standard and have little relevance to whatever economic system is actually in place today.
In “High Financier,” Niall Ferguson touches on the career of Hermann Abs -- and how Siegmund Warburg assisted, or didn’t halt, his post-WW II return to bank. A quote: “We cannot be sure that Abs knew that Deutsche Bank’s gold came in large measure from victims of the Holocaust.”
I've written before about "Father of the Fed" Paul Warburg. Maybe dredge some of that up.
If I recall, Paul was Siegmund’s American cousin. Paul’s firm led to Warburg Pincus; Siegmund’s was bought by SBC, then merged into UBS. And now CS! I doubt any of them would recognize investment banking today.
It’s sort of ironic that the biggest criminal bank is German, a people known ‘great engineering prowess’ and for strict adherence to the rules no matter how silly like no walking on the grass. The Laws of physics and the Laws of community behaviour are respected but it ends there. Weird.
100-years ago, the biggest shareholder of a bank where I lent money called me to his office.
“I need you to loan Mr. X $Xm.”
“But, sir. The committee has already turned him down for the same deal. He’s Canadian, and the only unencumbered asset in the States is a horse.”
“It’s a cuttin’ horse, a grand champion, and a prized stud! Loan him the money!”
“Uhh. Okay. I’ll need your signature on the docs, but I’ll get it done.”
Two or three weeks later Mr. X calls to inform me that our only collateral died of a heart attack while breeding a mare. Six months later the bank was owned by one of The Big Boys, and the money was never seen again.
When I sometimes have fleeting doubts about the validity behind one of your rants, I think of that story (100% true), and realize that those fuckers in the money centers do the exact same shit, but on an unimaginable scale.