Disaster Banking: British Bank Bradford & Bingley Blows Up and Insiders Make a Bundle

[maxkeiser]

by Max Keiser
http://www.huffingtonpost.com/max-keiser/disaster-banking-british_b_104833.html


n Naomi Klein's book, The Shock Doctrine: The Rise of Disaster Capitalism, she enumerates the process wherein Big Business uses disasters, both man-made (like Iraq) and naturally occurring (like the East Indian tsunami disaster) to capitalize on human pain and suffering. The thought-line of these organized neo-feudal (aka neo-con) thefts is pretty easy to follow once you understand that disaster means profit for purveyors of pain. Reading Klein's book is like putting on a pair of red/blue glasses at a 3D movie. A bit shocking at first, but quite revealing!

Let's put on a pair of those 3D shades and look at the banking sector's latest catastrophe: Bradford & Bingley

Picture 1

This disaster banking incident will make bankers (UBS and Citi) rich, but make the British economy poorer. This follows on the heels of the Northern Rock disaster and it's coming a little ahead of the soon to be Alliance and Leicester disaster.

As we read in this piece from the Telegraph, UK predatory loan terrorist Bradford & Bingley, who only last year was making "120%" mortgage loans guaranteeing borrowers that they would be in negative equity or "upside down" even before the ink dried on their contracts, is being recapitalized after the planned-disaster that was its comeuppance.

Insiders, the ones who, in part, are responsible for the mess, are about to pick up a massive pay day: a 14% fee for putting back together what they broke including a guaranteed £9m fee for just taking the meeting about what to do about the bank's collapse that they helped ensure by participating in a massive ponzi-scheme mortgage loan fraud.

It's not capitalism, it's disaster capitalism and it's paving the way toward neo-feudalism as the bankers at the top carve out 100% of society's equity built up over the past two hundred years and replace it with debt.

[Hydra]

1. Man that's funny

That's like how we paid Bush to let people die during Katrina.

These people have it down to a science- they scam us out of every dollar, and we pay them to do it!

[dixiegrrrrl]

2. welll ok then !!!

I got this great plan.

What we'll do, see, is take money from a bank, then let the police pay us money to find out where the bank money is.
Seems fair.
New rules, right?

[nelbert]

3. Interesting

Max - a thoughtful take on events.

I'm half way through Naomis book and had been wondering if the US & UK economies are being primed for hyper inflation and in the ensuing chaos we would get sold the full implementation of the Shock Doctrine as our salvation leading to all State benefits and Public Services being wiped out.

But look at this http://www.bloomberg.com/apps/news?pid=20601102&refer=UK&sid=a1R6JgwWDI9g - wtf is going on - why would a UK company with a total income of about $1B agree in 2006 buy $4B of loans from GMAC in 2009 - it doesn't make sense unless they thought the housing bubble would continue well into the next decade and beyond.

I don't know if they'll be able to pay this but if they can't then .gov.uk will probably have to step in Northern Rock style.

And as you say A&L may be next , and the main UK Banks aren't doing so great either

Interesting Times!