Simon Johnson: The Market Has Spoken, And It Is Rigged

The New York Times:

In the aftermath of the Barclays rate-fixing scandal, the most surprising reaction has been from people in the financial sector who fully understand the awfulness of what has happened. Rather than seeing this as an issue of law and order, some well-informed people have been drawn toward arguments that excuse or justify the behavior of the Barclays employees.

Read the whole story at The New York Times

Comments

[Warren Yuill]

05:47 AM on 07/16/2012

If we continue to accept this behavior from the banks, what will they do next?
How much more risk will be assumed in the pursuit of profits and performance bonuses?
Why are our elected officials seemingly powerless to effect change?
The banks are as emboldened now as they have been at any point in the history of modern civilization.
Whats the next penny to drop?

[parrotfish]

03:35 PM on 07/15/2012

"Simon Johnson: The Market Has Spoken, And It Is Rigged" has nailed it just right and it is organized crime at a global institutional level and no appologist for the financial "market" or banksters can spin it any other way but, they will try as they have vested interest (personal monetory gain) to keep things just as they are. This is no suprised at least to me, known this for decades. Knowing this and able to do anthing about it are too different things and those who could do something about it saw their own "personal financial gains" so they were the last people I would expect to do anything about it.

[v eyepete]

09:53 AM on 07/13/2012

Didn't George Carlin tell us the same thing long ago?

[Linda from Deerfield]

09:01 AM on 07/13/2012

Now if we could just uncover whatever lay behind Greenspan's "conundrum" -- the mysteriously low long term Treasury rates that seemed to signal recession when no recession was believed to be on the horizon -- we would have a nearly complete picture of the totality of global manipulation in that mid to late 2000's timeframe.

LIBOR signalled financial health that was not real, and the impossible recession, whose signal embarrassed, hit us like a ton of bricks, but we still can't seem to figure out who was really swinging the wrecking ball after absconding with the crown jewels.

[bikeguy54]

08:18 AM on 07/13/2012

"Regulation? We don't need no stinkin' regulation!"

[whochi]

08:33 AM on 07/13/2012

If you have a free market in play, you don't need much by way of regulations; you do need laws (as Ron Paul has stated ad infinitum) that act like 'speed limits' on a highway to control and cap and limit the risks that these behemoth institutions can take; and, a firm commitment that if they fail, they go bye bye with not hope of getting bailed out by the taxpayers.

[WoodyCPM]

07:56 AM on 07/13/2012

The hits just keep coming! Just yesterday there was an additional finance story in the press about how Wells Fargo pushed qualified black and Latino customers into more expensive subprime mortgages with higher fees for no other reason than their race and ethnic origin. About 34,000 customers were treated this way across a number of states.

It's nearly impossible these days to keep up with the liars and cheats, and all their lying and cheating, in the finance sector. Has the PowerPoint presentation been put together yet?

[Kenz300]

07:46 AM on 07/13/2012

Do bankers have a get out of jail free card?

We put people in jail for petty drug possession. We put people in jail for shoplifting gum.

Seems like rigging the world economy might deserve some jail time.

[JumpStreet1983]

02:29 AM on 07/13/2012

Well, duh. The "market" has effectively been rigged since 1913 with the introduction of the Federal Reserve Bank.

[Ainsi sera groigne qui]

01:50 AM on 07/13/2012

If there is any justice in this world and a God in heaven Simon Johnson will be the next US Secretary of the Treasury.

[frankieshoes1]

01:57 AM on 07/13/2012

And he will end the FED.

[JoeMomma]

11:36 PM on 07/12/2012

Of course it is the shocking part of this story is that anyone believed it wasn't.

[themodernleader]

11:21 PM on 07/12/2012

   The competent economist and academic theorist,  Simon Johnson, is intellectually honest and appears to be beholden only to our faith in our own capacity as independent, autonomous and united people.  He an other responsible guardians of the truth are coming to the rescue of our citizenry and nation in this moment of outrageous monopoly and oligarchy.  He must be emulated by all leaders in responsible positions---both private and public.
    We must not allow our history of self-government die on the altar of licentious greed and selfishness.

[themodernleader]

10:58 PM on 07/12/2012

     If this criminal activity is fully exposed and prosecuted there may yet exist a chance that self- government schemes will not yet disappear from the earth.  If President Obama would unhesitatingly prosecute those culpable American bankers, I believe he would win the coming election by a landslide.  His prosecution pursuit  would show an incredulous  electorate that he knows the difference between right and wrong and will not tolerate unrestrained license in our nation of laws.

[LeLoup]

11:25 PM on 07/12/2012

"His prosecution pursuit would show an incredulous electorate that he knows the difference between right and wrong"

I'll admit it would be nice. Alas, prosecutions of financial crimes under Obama are HALF of what they were under G.W. Bush...which were already lower than under Clinton.

Eric Holder and Obama have a LOT of explaining to do about this joke of a record they hold in this respect. It is a total insult to the citizens of this country.

[themodernleader]

12:01 AM on 07/13/2012

   I did not know the numbers but it was clear that not one notable prosecution has been carried out in this time of unparalleled systemic corruption.  When a concerned citizen looks at the record rather than the proverbial smoke and mirrors, he comes away alarmed and saturnine. In the future a book will be written Why American Slept.  We act as children playing it the yard while the house burns down.F&F.

[keramos]

01:28 AM on 07/13/2012

What is half of zero?  Your posting is a joke.  The SEC is a joke.  boy george and pumpheart ensured that it was a joke.  

But being a conservileclone, you attempt to blame the victims for the crimes.  SOP.  You clowns are so predictable.

[StevieTheK]

07:24 AM on 07/13/2012

I would have to agree with you. There are times that, no matter who is leading, that they must lead - that means making difficult but important decisions. I hope that comes to pass in this case. So much depends on it.

[paddlerchick]

10:46 PM on 07/12/2012

I think this scandal illustrates how those who work in the financial sector are totally divorced from reality. It's one thing to be a crook and get caught and it's another thing to make such amazing defenses for your behavior.

[PhilipTaylor]

10:48 PM on 07/12/2012

These criminals escaping PRlS0N will further undermine the legitimacy underpinning all markets - so legitimate bankers should be leading the charge to clean out the FRAUD!

[paddlerchick]

10:56 PM on 07/12/2012

Are there any legitimate bankers left?

[mario59]

10:58 PM on 07/12/2012

Look at senator Phil Gramm, the architect of taking down the 1930s-era firewalls that were meant to keep us from the predations we have faced since 1999. Gramm maintains he's a "mythbuster" and it's a fabrication that deregulation is the reason for all the financial scandals. The thing I'm upset about is his talk is very cheap. His huge experiment along with Greenspan is a complete and utter failure and they are allowed to merrily go along, making millions and incurring no downside for it. It makes me thing of Bluto from Animal House when he said to Flounder, "You f**ked up! You trusted us!"

[paddlerchick]

11:10 PM on 07/12/2012

I'm with you on this. I am so offended each time some one interviews or quotes Greenspan. He should be prosecuted for something. Gramm set the stage, Greenspan took us down.

[WoodyCPM]

07:58 AM on 07/13/2012

The guilty go free while the slaughter of the innocent marches on.

[PhilipTaylor]

10:46 PM on 07/12/2012

5 Arguments attempt to Coverup the SYNDlCATE’s CRlMES!

 
1. This kind of LlB0R che ating has gone on for years  - Lamest excuse!  
BIG QUESTION:  Is the financial sector crooked at its core?  Patterns of behavior show incentives, culture, organizations, and the HEA RT of the FlNANClAL SYSTEM are COMPLETELY BR0KEN.
 
2. But “everyone does it.” LAMEST EXCUSE X 2!  Try it when you are accused of fraud.  A SYNDlCATE is INVOLVED from across the financial SYSTEM in conspiracies involving Barclay and THREE US BANKSTERS - JPM, B of A, and ClTlGR0UP.  The DEN of CRlMlNAL CENTER IN L0ND0N and NYC but others are involved!
 
3. It is a “VlCTlMLESS CRlME” which is COMPLETELY FALSE!  Traders WIN using manipulations so OTHERS LOSE.  Investors who get near ZERO Interest on their retirements LOSE.   Borrowers pay TOO MUCH USURY INTEREST and FEE COSTS!   Everyone overcharged by lntermediaries doing crooked behavior L0ST. Local governments L0ST heavily putting pressure on layoffs and more TAXES.  
 
4.  It was all the L0USY regulators’ aFuIt that we did the che ating on LlB0R. While many regulators have sold out for the PR0MlSE of rewards, BUT who does the Capturing?  Big banks and Hedge Fraudsters spending many hours lobby and pushing regulators to pay less attention.
 
5. Weakest argument is, “It was only a few basis points, here and there” (1/100 of a Percent or  0.01%).  But LlB0R is a SYNDlCATE of criminals conspiring to R0B many for personal and Corporate gains.  But that small O.O1% can MEAN $BILLIONS to MILLIONS!
 

“On the majority of days, no requests were made at all” to cheat on Libor. 

 
 -- R0BERT DlAM0ND CEO of Barclay
 

“This was rather like an adulterer saying that he was faithful on most days.”

 
 -- The Economist, who almost never criticize prominent people in the financial sector
 

“Power corrupts, and financial market power has completely corrupted financial markets  – completely destroying the legitimacy on which sensible financial intermediation needs to be based.  Who trusts a banker at this point?”

 
 -- Dr. SlM0N J0HNS0N, Peterson Foundation

[EdCorner]

10:31 PM on 07/12/2012

What a strange affliction - wanting/desiring more than you'll ever need and it doesn't matter how you get it. Every CEO and elite bankster need a full psychological evaluation to see if they're mentally fit to stand trial - and then try them. There's always room in the for-profit prisonsthey love investing in.

[PhilipTaylor]

10:49 PM on 07/12/2012

An entire industry of SlCK0S!

[had410]

01:28 AM on 07/13/2012

and the polititians (AKA Gansters) that enable them.

[had410]

01:28 AM on 07/13/2012

(AKA Gangsters)

[WoodyCPM]

08:00 AM on 07/13/2012

It can certainly be argued that their behavior is sociopathic.