Day 8 – Bailing bailers

So, three years after the first crisis, the only knee-jerk solution the governments can come up with is to pour more money down the drain that is the world of high finance.

There are now banks falling and requesting bailing out all over the place – Greece, Denmark, Belgium. Franco-Belgian Dexia is a particularly appalling example: Belgium doesn’t even have a government, for longer than any nation in history, and yet its rulers have managed to suppress their endless arguments enough to agree on nationalizing a fallen bank. Nobody knows who will pick up the tab if Belgium falls apart under the financial strain of this endeavour, but nobody seems to care anyway. Dexia is ‘too big too fall’ – even though it already received substantial funding last time it flopped and had three years to prepare for another wave of the crisis.

Even City AM started to publish reports and first-hand accounts of how useless the banks have become when it comes to doing anything of even the remotest public interest. They are not lending money anymore – governments and business incubators had to take over that part of their business. They are obviously not providing a valid customer service. They are not even able to make money for themselves – otherwise there would be no need for a bailout.

In a completely unrelated report, bankers bonuses are set to reach new record highs next quarter. Obviously everyone’s doing a great job out there.


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