Sunday, October 12, 2008

Banking crisis part of a deep strategy?

On Financial Sense, F. William Engdahl speculates that asset-backed securities ("toxic waste" mortgage packages) were sold to European banks in order to poison their wells and leave the world banking system dependent on the USA - and an elite group of American bankers.

One startling fact cited in this conspiracy theory, is that the office responsible for overseeing Credit Default Swaps had its staffing reduced from 100 to... ONE person. Giving evidence to Congress, the Chief Accountant of the Securities & Exchange Commission said "... there has been a systematic gutting, or whatever you want to call it, of the agency and its capability through cutting back of staff."

Oh dear, I thought conspiracy theories were for nutcases. Maybe I'm wrong.

5 comments:

Old Prof said...

In 1986 or so, a member of the Reagan administration stated that he wanted to 'get government small enough to drown in a bathtub'. The method described was to bakrupt the system.

Sackerson said...

The likely result is the exact opposite, as we see.

dearieme said...

How did the cunning conspirators oblige the European banks to buy the toxic rubbish?

Sackerson said...

Greed, booze and girls?

Old Prof said...

Much simpler, and not requiring any graft - the returns on the derivatives were far higher than could be achieved with 'real' investments, and bankers are greedy.