12 Oct 2008

Another day, another series of financial catastrophes

Britain's banking system is rated 44th in the world 'behind El Salvador and Peru'.

According to the newspapers today, Britain's four largest banks will go through a government rescue on monday.

Shock horror a major hedge fund Polygon has capped salaries at a measly £100,000. The big swinging dicks of finance are being neutured (or are they living like James Bond villians on desert islands and getting the media to lie about their real pampared status?)

The Lehman's CDS auction went ahead smoothly yesterday with 'assets' worth on paper $1 being sold for 9 cents....90% losses, which will weaken the already punch drunk financial institutions that bought into the credit default swaps.

There is a possibility of generalised financial collapse, which is a worry here in the South East of England because community cohesion and useful skills for real economic activity are at the their lowest ever.

Cuba looks like the top of the range economic model to me...well to be honest if they can make the change from the creaky soviet central planning to a lean, grassroots participatory ecological system they will of course rule the world!

So yes old style soviet economics did not deliver but financial capitalism is having the bricks knocked out of its Berlin Wall as I blog.

Excellent article in the Independent on derivatives if you are still not up to speed.

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