Friday, July 13, 2012

If You Create a System That Includes The Perfect Conditions for Scandals, Expect Scandals to Happen

Massively overpay people for taking huge gambles with other people's money and they will do so (ethical people won't, but you only need a few unethical people and their is an oversupply - county on running out of unethical people is an extremely foolish "strategy").   Make it even worse by creating a culture where everyone sees lots of people getting massively overpaid for the times when the roulette wheel lands in the right spot and you create a culture ripe for claiming good results (no matter what the truth is).  Add in a very smart strategy (for those seeking to siphon off billions from the productive economy) of creating massively complicated schemes that allow for all sorts of false claims and you have what the leaders of our country (and a few other countries leaders) have created.

Other leaders abolished child labor, created universal education, sent us to the moon.  Ours are busy justifying massively unjust payments to a few at the cost of the well being of the country and the citizens of the world.

The too big to fail welfare banks have been practicing this behavior for a couple of decades.  And, like clockwork, huge scandals occur.  It seems like we have a huge spike in scandals in the last couple of years.  The scandals are entirely predictable given the systems created to try and justify paying unjustifiable payments to executives and gamblers.

The reason for the spike in scandals being discovered now is probably 2 fold.  First the unjustified pay has increased massively and thus increased the irresponsible behavior and rewards for being irresponsible.  Also, fraud often remains hidden in boom times and becomes uncovered when the ability to hide that the roulette wheel hasn't actually been providing the returns used to claim the unjustifiable payments taken by the executives and gamblers.

The quote of the latest massively overpaid CEO overseeing yet another scandal is just the same as all the other mindless "explanations": 

'But he stressed that it was an “isolated” incident and that JPMorgan had already cleaned house'

They then pay those we elect enough to have those we elect continue to grant them massive favors and continue to allow the undermining of our economy by the continued scandalous practices.  The process will continue, as it has for decades, until we refuse to elect those that sell out the country to pay back those giving the politicians lots of cash (or for the politicians that can't understand what is happening).

Eventually the delaying game of those operating these phony systems to extract big payoffs for themselves will no longer be tolerated.  But so far we seem happy to continue to support leaders doing all they can to support this system.

It doesn't appear, even now, we are going to demand change.  And it is completely obvious the too big to fail welfare banks are just increasing the scandalous behavior and the politicians are just increasing their support for these institutions.  Oh the politicians will say silly things to claim they don't like the bad things being done to the country and then run right back and do the bidding of those at the too big to fail welfare banks that give them cash.  Those giving cash know it doesn't matter what politicians say only what they do.  And the too big too fail banks couldn't ask for any better lackeys.

It will change when we throw out the politicians that are (and have been for decades) making this possible.  Until we do it won't change.  The executives and politicians have shown no amount of suffering is enough for them to behaving honorably.  As long as they get their cash they don't care what it does to the country or the economy of the world.

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