Silver and Financial Markets Are Manipulated, But So What?
Stock-Markets / Market Manipulation Jul 02, 2012 - 01:57 PM GMTSomeone sent this video clip to me in response to the things I have written earlier today.
I find the whole discussion absolutely remarkable when viewed from an objective, or at least a non-American and non-financial industry, point of point. The exceptionalism and denial in this is surprising to watch.
But what really "knocks one's socks off" is the general conclusion around minute 9 of this video that the banks are manipulating the financial and commodity markets, with silver specifically mentioned. And the panel accepts it as 'oh well, that's the banking system.' That's just the way things are and if you don't like it, well then tough luck for you.
I am sure these are all very nice people, but they are so deeply involved with the financial system that they have lost their perspective. And that is a general problem with some of the professions like economics and financial reporting.
This is a fine example of the credibility trap. The truth is so damaging to oneself as a member of a particular status quo that it can rarely be admitted, and if admitted, cannot be taken seriously. After all, the game is rigged, and everyone knows. Well at least everyone who counts, but for anyone who says it before its time they are ridiculed, shunned, and dismissed.
As I have said, at least CNBC is willing occasionally to entertain such discussions, as opposed to the extended infomercials and streaming agitprop carried in the guise of reporting on some of the other corporate news channels.
After a long discussion of how the private sector must suffer further, a somewhat eccentric but interesting review of the European postwar economies, and some additional economic babytalk, the group segways to JPM's upcoming earnings report and the London Banking scandal.
I particularly enjoyed Chris Whalen's description of JPM's CIO as a 'rogue hedge fund in London.' He knows better.
I do not wish to pick on Chris, but he is a smart and generally well-educated fellow, a graduate of Villanova, but he is still a creature of the system, a former employee of the NY Fed and Bear Stearns, and captive to a cultural mind set, perhaps without even realizing it, that is apparent to an outsider.
Whalen: None of its [JPM's CIO losses] are acceptable, but see the whole point is Jamie got entangled in the media. (He got caught lying and gambling with customer money - Jesse) If this had just been a reported loss with a lot of other numbers we wouldn't be talking about it. It's a trivial number in the grand scheme of things.
Sorkin: What may be less trivial is this situation, this scandal involving LIBOR.
Whalen: Ah well, welcome to the banking industry. Come on, uh, you know... (wink wink, nod nod)
Sorkin: You hear about these things...
Whalen: Foreign exchange, Libor...
Sorkin: You used to think these were conspiracy theories. Right? You hear this about people manipulating LIBOR, you hear about people manipulating the silver market...
Michelle: And they are!
And that, ladies and gentlemen, is the credibility trap in action in the late stage failure of a thoroughly rotten status quo.
By Jesse
http://jessescrossroadscafe.blogspot.com
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