Financial News 8/22/12 – Greece Bankruptcy, Russia Joins WTO, UK Banking Scandal

Well it seems Europe is still struggling to save its flailing currency and German Chancellor Angela Merkel will be facing some tough decisions over the next weeks. Will she save Greece or will she not? While its rich population is vacationing on their yachts, the average income folk is facing near economic depression conditions, and to avoid full on bankruptcy, Greece will need to see the Germans empty their pockets of many more billions of euros. Enough is enough I say. I recently read a very interesting article in a German magazine, while I was there, you should visit by the way! Munich is beautiful! – and in that article, one of the arguments is, that the rich should buy out their countries debts, since it is their tax evasion tactics, that got us into this mess in the first place. The only problem is, that they probably don’t give a flying crap about the euro, as long as their assets are safe and sound in Switzerland and Belgium, and of course as long as their yachts are still running. Maybe it is time to realize that we are all self interested animals and to say good bye to the euro?

Well well well.interesting and very unlike Putin developments have taken place today in Russia with Love and Iron Fist. After 18 years of negotiations, Russia has finally graced the World Trade Organization with its entry. This development could essentially make Russia more attractive to foreign companies – yeah like moths to flames they will fly – BP will tell you all about their fun little experience with the Russian business ways, over a nice strong bottle of vodka. Russia on the other hand will get easier access to international markets and could see more foreign investments – which these investors will probably never see again. It’s a trap! Like that flesh eating plant – luring you in with WTO membership and then closing in on you with corruption, bureaucracy and non-existent rule of law.

And the Banking industry continues to make a really good name for itself. In the UK a new scandal is brewing, that of toxic insurance products, which were forced upon unknowing victims, when all they wanted is to get a loan. It seems it was common practice in the UK in the year of 2007 to hand out good loans if the unknowing party bought insurance in from of an Interest Rate Swap. Basically it is the same old story of the bad banker not explaining the hopeful small business, that if Bank of England caps Interest Rates, they insurance buyer will go down with it, meaning he will be faced with an unaffordable bill to pay off his loan. And that’s what happened to many. As I said, maybe it’s time to admit we are just a bunch of self-interested Hobbesian creatures? Discuss!