nef go into full tin hat mode

But whilst the public sector is being subjected to a massive upheaval, talk of breaking up the banks, regulating them more effectively or even imposing a tiny financial transaction tax remains, largely, talk.  These men may have Goldman Sach’s vote, but I doubt they have that of the European people.  The European project is reaching a new nadir.

What\’s actually being missed here is that it is the banks, Goldman Sachs amonst them, which have been shouting for 18 months that austerity won\’t in fact work.

That\’s why they\’re not buying the bonds, see? Which is why the yields are rising.

It\’s precisely the banks which are saying that the politicians are fucking up.

11 thoughts on “nef go into full tin hat mode”

  1. If it requires six foot of hempen rope to properly hang a banker, are world hempen rope stocks adequate for the shortly forthcoming demand surge?

  2. There is a pretty simple solution to all of this.

    If ‘the people of Europe’ don’t want the banks involved , each Government can pay the banks back what they owe, and the banks can fuck off and start lending to people who’ll appreciate, and pay back, what they’ve borrowed.

    It like blaming the dealer for your crack habit.

  3. What is also being missed is that the banks are, in fact, being subjected to massive new regulation (capital requirements will more than triple between Basel II and Basel III), and (in the UK) a one-off bonus tax and a proposed balance sheet levy. Hence yet another round of bank layoffs announced today.

    The banks (which mostly consist of the people who didn’t screw up during the boom, because the people who did were fired) are only getting off lightly if you have a monomaniacal focus on transactions taxes.

  4. That term “tiny” gets used a lot with FTT.

    I take it these people would be surprised to learn that a casino roulette wheel only has a ‘tiny’ house edge of about 3%. Take £103 to the casino for the night and you’re only likely to lose £3. So they’d have you believe…

  5. “it is the banks … which have been shouting for 18 months that austerity won’t in fact work”

    Are they?

    Or are they shrugging and predicting that the politicians won’t actually deliver the promised austerity?

  6. ‘The people of Europe’ have been the beneficiaries of their Government’s borrowing for a long time. Now it’s time to pay the bill for the benefits they have received that they couldn’t really afford, they think that it should be the debtors who should dictate the terms of the repayment, and that banks should be punished for enabling their politicians profligacy ?

    Fuck it. Give ’em their pan-European tobin tax, and these ‘people of Europe’ can watch the banks migrate their trading operations to other jurisdictions, leading to lower tax receipts, less benefits, and less ability to pay back the debts their government’s have accrued on their behalf.

    Then you’ll begin to see what the banks not giving a damn really looks like.

  7. I’m not sure how you measure “upheaval” but I think quite a few banks have experienced quite a bit of it, and the public sector hasn’t exactly been decimated or radically restructured or anything. How, for example, does the proportionate scale of redundancies from the public sector compare to job losses in the financial sector?

    I don’t get much sense they have been paying attention to the various attempts at re-regulating the financial sector either (Vickers, Basel III, Dodd Franks etc.)

  8. Re Luis Enrique’s last point: do the ranks of nef contain [m]any economists who specialise in banking matters, particularly regulatory ones? If I was trying to run a trendy and award-winning thinky-tank, this would have been the area I’d have been trying to plough into for the past couple of years, with the hope of churning out some influential research and media commentary while the public/political will for a revolutionary shake-up of banking persists. If you really want to radically transform the face of the economy, this is THE boat you don’t want to miss.

  9. I demand a tiny tax of 1p to be levied per minute on every public sector employee. Who could object to a tiny tax like this?

    “The European project is reaching a new nadir.”


Leave a Reply

Your email address will not be published. Required fields are marked *