Dr.Willy wrote:I cant speak for the rest of the world, but in germany many of the banks that got hit hard were semi governemt-owned banks. On the other hand, the Deutsche Bank led by untamed-casino-capitalist Joseph Ackermann did relatively well.
So - why not?
This sounds like taken straight out of the mouth--undigested and raw--of one of Ackermann's "professional consultant" lobbyists, a statement of Half-Truth conveniently remixed for a specific-interest agenda. Since you are a senior member, I will now take the time to explain the world to you, dissect your statement, and conclude to a much more sound truth.
Banks today do not exist as monolithic solitaires, the whole financial system is intimately inter-weaved in such density that it is often impossible to discern who exactly begins or ends where. This eminent lack of transparency has been abused through custom-tailored Financial Product packets that are very complex compounds of interests, an illusion of security by spreading risks--to the point where it it is impossible to say who carries which risks--wrapping into plausibility a very dangerous speculation, effectively offering a deal that is too good to be true
but also too good to miss out
. The clever creation of such Financial Products to sell any kind of liability to anyone became the very heart of the business. This scheme is supported by a System of Credibility, the financial rating companies, that played along, either simply because they shared into the benefits, or because they simply were over-strained to see what is going on.
Or to put it more bluntly: the fine art of financial work that generated all these unreal profits was buying a pile of shit with an embedded cracker which fuse is already on fire, repacking it into a beautiful box that looks pretty stable, slapping a label on it that reads "Best birthday surprise ever!" that shows a picture of gold and jewels, and selling it for a lot of money to someone dumb enough to believe your words "just look at the picture! The price I ask is actually nothing compared to what you get!", and while the victim's thinking, some people "happen" to casually stroll down the street to tell you by-the-by "hey, psssst, you, yeah, I just bought it yesterday, he's right, it's awesome! was the shit! I tell ya! don't miss out, but hey, don't tell anyone else, it's a secret"; and yet some of the poor sobs will actually realize that they were bullshitted even before they opened it and quickly try to resell to someone even dumber, hoping that it lasts just long enough for that, and so the "presents" make their round until shit explodes--or all explodes to shit on the same day.
The fact is that many people started to get a bad hunch about this procedure long before things went down the gutter, but the complexity of things made it almost impossible to see when and where exactly it may break, and others simply started to.. believe. The financial system became a black box of wonders that is prayed to everyday in rituals, and somehow money jumps out of it, the longer and more the better, no question asked, it just works.. and with all those computers and numbers and blinking stuff
, I mean this is the future right?, and label terms that sound so scientific, things just work on their own, and after all there are always the experts that will jump in and save the day, right?
Now in light of this, guess who the street dealer and who the sad bum was? For the most part, it turns out the private banks are the scam sellers and the partly-state-owned banks are the victims. This is what happened:
The private banks became speculation banks for which private costumers are only an insignificant part of their profit, actually a small margin annoyance, but that are maintained to keep up the pretense.
But the part-state-owned banks fill in with having the specific mission given by the state to be there for the citizens, for the costumers. But beyond just service, these state-banks have to generate return in interests too to offer costumers some sound reason to bring in their money, and after all the bank has to cover its own costs of operations, especially since as mentioned servicing private costumers is very costly with low returns.
Now behold: the bad thing is that the private speculation banks get all the high-qualified expert personal that knows how to generate that necessary profit to cover all this, or that can judge well which speculation offered to the bank are sound and save--they get these people because private banks can offer much higher salaries, ridiculous ones, compared to state banks who are supervised and have to be responsible.
So if privates have all the experts, what do have state banks? Money. Tons of it. From the state and from the citizens.
And so the inevitable comes as it musts, the hungry speculation private banks draw on that: their experts abuse the shit out of the inept state-banks by selling them those "professional" Finance Products, lending themselves as consultants and support, and in doing so taking all their sky high smelling shit and dumping it into the state-banks, while themselves looking unblemished. And all the dirt that still happened to stay on them on doomsday was simply left over they weren't quick enough to dump unto the state-banks.
And now we come back to your ridiculous statement:
"Private banks are standing relatively well compared to state owned banks, so evidently the privates did it right?"
with the implied follow up thought "state banks did something wrong?.." and "is it perhaps the state owned banks that created the depression?" and the implied conclusion "there you go, this would all have never happened would the state not meddle in market affairs!!!! I knew it, the state and the socialists are at fault for all of it! and now they want to shift responsibility unto the private sector to further their communism agenda!!!! it's a conspiracy!!!!! "
Dr.Willy wrote:Yes they did.
But having a look at the german tax system again, any change will make it simpler, no matter what you change.
Dude, c'mon, drop the charade, you don't actually
know what you are talking about.
Wut ohne Ziel. Wut ohne Folgen.