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Disaster Banking: British Bank Bradford & Bingley Blows Up and Insiders Make a Bundle

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In Naomi Klein's book, The Shock Doctrine: The Rise of Disaster Capitalism, she enumerates the process wherein Big Business uses disasters, both man-made (like Iraq) and naturally occurring (like the East Indian tsunami disaster) to capitalize on human pain and suffering. The thought-line of these organized neo-feudal (aka neo-con) thefts is pretty easy to follow once you understand that disaster means profit for purveyors of pain. Reading Klein's book is like putting on a pair of red/blue glasses at a 3D movie. A bit shocking at first, but quite revealing!

Let's put on a pair of those 3D shades and look at the banking sector's latest catastrophe: Bradford & Bingley

Picture 1

This disaster banking incident will make bankers (UBS and Citi) rich, but make the British economy poorer. This follows on the heels of the Northern Rock disaster and it's coming a little ahead of the soon to be Alliance and Leicester disaster.

As we read in this piece from the Telegraph
, UK predatory loan terrorist Bradford & Bingley, who only last year was making "120%" mortgage loans guaranteeing borrowers that they would be in negative equity or "upside down" even before the ink dried on their contracts, is being recapitalized after the planned-disaster that was its comeuppance.

Insiders, the ones who, in part, are responsible for the mess, are about to pick up a massive pay day: a 14% fee for putting back together what they broke including a guaranteed £9m fee for just taking the meeting about what to do about the bank's collapse that they helped ensure by participating in a massive ponzi-scheme mortgage loan fraud.

It's not capitalism, it's disaster capitalism and it's paving the way toward neo-feudalism as the bankers at the top carve out 100% of society's equity built up over the past two hundred years and replace it with debt.

In a related story, here's me talking about the global credit markets and the current food crisis on Al Jazeera today, I come in at 5:50 minutes into video.