Review: The Lives of Eliza Lynch, Scandal and Courage,

1st March 2010 Tony Phillips 0

I was invited to São Paulo by the Author, former Irish ambassador to the United Nations Michael Lillis, to attend the book launch of the Brazilian Portuguese version of their book. It was refreshing to see that even in the twenty-first century, this shadowy heroine is still capable of eliciting a fiery debate.

Stop Global Whining

When all is said and done in Carbon-hagen

16th December 2009 Tony Phillips 1

Wednesday December 16th, “Reclaim Power” day in Copenhagen, inside the Africans are shouting at the Ethiopians and outside the Climate Justice advocates are shouting at the COP who they accuse of being co-opted by corporate lobbyists. To a lobbyist climate […]

Stop Global Warming

Callout from Copenhagen

8th December 2009 Tony Phillips 1

Hello from Denmark, Decided to come freeze my little tush off in Copenhagen for eleven days for global warming (COP-15, look it up). Sounds like fun? Well, sort of! Anyway I’m writing articles for a few people here and I […]

Private Equity

The penny drops, the real reason for the “crisis”

4th July 2009 Tony Phillips 0

Saturday morning, Buenos Aires; while the city sleeps off a hangover dreaming of a delicious breakfast or nightmare public hospitals full of A H1N1 patients, I read the Financial Times to find out what is really going on in the world.
I do it so you don’t have to!
So I come across this short, dare I say, boring. piece by Ms. Henny Sender, one of the video starlets of the FT.com website. Henny is a dead-pan, middle aged, east-coast financial commentator who spends a lot of time with Private Capital. She says it like it is.
What is Private Capital?
Remember “Mergers and Acquisitions” in the 1980’s? Same thing! They got a bad name for unemployment in the UK so they changed their name. Private Capital buy and sell companies. Henny’s article is about them buying and selling banks.
Sounds boring? Yes I know! But I promise to get right to the point.
Private Capital are just that! They leverage secret multi-billion dollar investments from the very VERY rich by using their executive-level connections with investment banks. This gives them an inflated bag of cash which they use to buy collapsing companies. Once bought. they are dissected, the bad bits thrown to their friends in the government to be “rescued”, then they sell off the juicy bits for a profit which they use to pay off the investment bankers, the private clients and the overpaid executives.
What I like about this short article is its frankness and completely amoral standpoint. It clearly states that “rescued” banks take taxpayers cheap loans and invest them at speculative higher rates for a profit. Meanwhile they resist making productive loans due to uncertainty in the “recovery” (those green shooty darling buds of may (frost-bitten in June).
And guess what? No loans, no recovery! Casino capitalism is left on life support in the public wards of the nations of the world like our A H1N1 patients.
In a nutshell; governments advised by rich investment bankers, are fattening up hopelessly useless parts of a failed capitalist system feeding them a drip of free money so they are beefed up for consumption by the rich. They are then digested and spat out at a profit for those same rich investment bankers. Consolidating capital at the top while taxes rise and jobs are lost for the middle classes.
Is this really the point I ask myself?