Watch the investment bankers when the asset sales start – they can screw us without our noticing

May 25, 2011

Alf recently posted an item on bonking bankers.

Today he draws his constituents’ attention to their flair for screwing their clients – in the US, at least – when they are not screwing their mistresses.

A particulary shabby case has been highlighted in The New York Times.

The item spotted by Alf kicks off with a proposition that is glaringly obvious:

If there’s one thing we’ve all learned in the aftermath of the financial crisis, it’s that stiffing your client is not a crime. Not if you’re an investment bank.

The writer illustrates this with a couple of examples.

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Enough to drive an optimist to drink

April 19, 2009

It had seemed the American economy might be coming right, which meant the world economy could look forward to a recovery, which would be great news for the export-dependent New Zealand economy.

Ben Bernanke, at the Fed, was seeing green shoots; President Obama was seeing glimmers of hope; the stock market was exuding confidence – but Paul Krugman, the Nobel Prize winner who writes for the New York Times, isn’t ready to sound the all-clear.

Ordinarily, that would be enough for Alf to demand Krugman’s arrest, to be tossed into a tumbrel with other gloom-sayers, hauled through the streets of Wellington and be jeered by the populace, then thrown into the stocks for a couple of days.

In this case, extradition proceedings would be required.

More important, Alf concedes Krugman has given four reasons for caution. Maybe we should consider them.
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