Robbing Peter To Pay J.P.

LIeBOR Gets Interesting As Regulatory Capture Reverses Itself In England | ZeroHedge: "Libor manipulation is a crime that already robs the public to create bonuses for bankers. By artificially lowering interest rates, the banks caused cities, towns, countries, and other public entities to receive smaller returns on their variable-rate investment holdings. If it turns out that taxpayers end up paying the fine for RBS's crime of robbing taxpayers, how perfect would that be?

More importantly Matt, synthetically depressed LIeBOR rates artificially lowers the bar for economic profit, in layman's terms it makes the bank look more profitable and less risky than they actually are. As you stated, this leads to bigger bonuses funded by bigger taxes borne by financially smaller taxpayers. Hmmmm....

Who else is in the sights of the upcoming truth? Citbank, Bank of Lynch (robbing) America Coutrywide and JP Morgan!"

WTWT. Yes, Max and Stacy have a weakness for hyperbole in this one. But unfortunately, you can't argue with their facts.

And Reggie reminds us that "regulatory capture" is the only way to understand this situation. One more time for all of you who still don't get it:

And yes, the regulators are bought and sold just like the legislators.

I haven't finished it yet, but already I can't recommend "Ending 'Big SIS' (The Special Interest State) and Renewing The American Republic" strongly enough by way of understanding the mess we are in.