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

Disaster capitalism, a term that describes these organized neo-feudal (aka neo-con) thefts is pretty easy to understand once you understand that disaster means profit for purveyors of pain.
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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

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.

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