Tuesday 15 May 2012

golden parachute

Why is it that financial institutions seem to be the last ones to suffer and made to accept the blame in moments of crisis? Of course, numerous banks are being battered by outside appraisers, but that affects the clients that have graciously allowed the banks to hold their money—or not just hold it, in many cases, but rather do something risky and maybe a bit evil, subversive with it too—but restructured or commandeered, the money-managers are not allowed to lose, while credit, savings and mortgages for the public flitter away or are leveraged with insurmountable interest rates to guard against instability.
Of course, these imbalances are compounded in business and government as well, in the forms of lost capital, revenue and social-services. If any other utility—and again that’s all that any bank is, like the electric company or Reading Railroad—business enterprise or government failed as consistently and unapologetically to deliver, they would be rightfully remediated or dismissed.
The same financial institutions that are bringing the euro to the brink, like giant babies in some blameless but willfully destructive playpen, are admitting to nothing, nor being held with any responsibility by their host governments that created the framework for them to raise amazing wealth. I don’t think there is any extraordinary conspiracy behind the governments of the European Union trying to cobble together a fragile fiscal pact four years after certain inevitabilities became apparent (other than the anodyne corruption of politics and wealth). 
Delay and unchecked speculation, however, has only afforded the chance for bankers—not the cleverest or most creative lot—to huddle in their war-rooms and quietly, only eking out panic in controlled doses—prepare to re-tabulate the score, drafting the new financial order while economic ministers obliged with a believable cover, again deflecting blame and becoming the saving champions of the markets.