Another Bank bites the dust. Credit Suisse, one of those "too big to fail" institutions that are a global systemically important bank that is not allowed to collapse. And it won't because it is being bought out by another Swiss Bank, UBS - for a paltry three billion. Not only that, it is being pushed through by Swiss regulators without even getting shareholder approval, which is literally making new rules. The Swiss government changed the laws to make it happen.
So much for Swiss stability.
Well, Credit Suisse had a good run of it really. Almost 170 years of screwing people over.
But of course, nothing is really lost in the economy. It is like energy, in that sense, as while value can be created, rather than destroying it, it is just stored in another firm's pockets. And, of course, the only people to suffer the consequences of financial mismanagement, are the normal people who effectively have no say over what happens in the economy. Sure, it is by choice, but the majority of us don't know that, because we have been conditioned to believe that we are far too stupid to understand the economy, so we have to leave it in the hands of others.
They will look after us.
And we will suffer, because like it or not, we are tied to the outcomes of mismanagement globally, and so are all of the firms we are working for, one way or another. When the economy collapses and people stop spending, businesses stop spending too and make cut backs, which means people suffer more and spend even less. Then the governments come in and give handouts to the people who are struggling, using money borrowed from the future and will have to be paid back with interest, with the payback and interest coming out of the pockets of the people they were helping with the handouts.
The circle of life.
Almost 50% in 10 days. Around 80% since the start of the year.
Where's MSM the news on it?
I wonder how much of the drive on BTC at the moment is caused by the withdrawals from the banks? It would be interesting to have full visibility on all the money flows to see what is going where and when. Transparency is not something banks want however, because you know... how are they meant to get up to nefarious business when everyone can see what they are doing? The governments would never let it happen, because if there was banking transparency, the governments are screwed also - because of their nefarious activities.
But, what is interesting in a digital world, is very little is forgotten and eventually, most of the secrets are going to be uncovered one way or another. Hacks, leaks - stupidity. All that laundering, will come out and destroy all the "behind the scenes" work that has been done. You know, Credit Suisse isn't exactly the picture of morality, but are any of these banks?
How can we know?
They might get "rocked by scandals" but scandals are only so when they are discovered, it doesn't mean there aren't other scandalous activities going on. They talk about how "interconnected" the global economy is through the banking systems and banks themselves, so how different do you suspect their practices are, when they are all not only dealing with each other, but also competing against each other? Incentives drive behavior, so even if there is no conspiracy, there will be alignment of activities due to the incentives, which in terms of business, is defined by the basic algorithm of, "for profit".
In this day and age, it is actually quite incredible that we are still acting as if there are no better alternatives than this current system. Acting as if more regulation of the sector is what will fix it, despite nothing actually changing through those regulations, because the incentives stay the same. Open up the transactions for public viewing however and suddenly, the incentives change, the behaviors change.
Most people are not exhibitionists - so when the blinds are open, they aren't going to have their pants down. And while personal privacy is important, do you think that so much of the banking sector and government activities should be done behind closed blinds? If the curtains were pulled open, they would have to change their behaviors, because ultimately, they are beholden to the opinion of the people for their success.
I don't take pleasure in the collapse of the banks, because real people are affected, and we will all feel some of the repercussions. However, something has to change and unfortunately, nothing will until there is so much pain being experienced, that there will be a strong enough push back. This is not the best way to go about change, but humans aren't the smartest of creatures, though we might be the greediest.
It is easy to complain about what goes on in the world of government and finance, but if put in the same situation, would the average person do differently? unlikely, because the people making all of these decisions, were also average people too and likely also thought once upon a time, they wouldn't be acting like they are today. Given incentive and the power however, you like the Swiss government in regard to the Credit Suisse merger, they made up new rules for themselves.
Given the opportunity - who wouldn't?
Taraz
[ Gen1: Hive ]