Over and over again, Americans see the same debacle unroll before their eyes, that is, if they are paying any attention. Earlier this year, billions in bonuses were paid to Merrill Lynch executives as the firm was failing. An agreement was made that Bank of America would pick up the pieces of Merrill Lynch with the support of the American taxpayer and later, BofA was bailed out as well. After a dance with the SEC, no wrongdoing was admitted.
After an investigation by the Securities and Exchange Commission, Banking wunderkind JPMorgan agreed to a $722 million settlement. Why? It all rises from a risky derivatives deal that drove Alabama politics to the brink of bankruptcy. As part of the settlement, JPMorgan neither admitted nor denied wrongdoing despite overwhelming evidence that the financial group did actually engage in acute wrongdoing.
What passes for justice on Wall Street? Regulators give a banking institution that they back a fine that taps the corporate bottom line for wrongdoing. The banks are eager to quickly forget the whole thing by paying a modest fine and getting on with business as usual. There is no admission to wrongdoing and business continues. The government gets a fine to pad their already overbloated budgets that the American taxpayer is already floating. We must be stupid because we keep doing the same thing over and over.
No one admits to corruption, much less to making a mistake. Meanwhile, nobody pays back the taxpayer, much less actually pays off a debt of any kind. Reality is a round robin of funny money, usury and blatant dishonesty. Where is the outrage? Nowhere, because we are too wrapped in our small lives and/or afraid of reprisals or perhaps the boogeyman. Perhaps by our collective refusal to stand up against politicians and bankers, we are admitting that any American would do exactly the same thing; that not one American is any better. What do you say? Probably very little.
Episode Four of the Ascent of Money illustrates the spread of financial practices across the globe including the bad, the American real estate bubble and the consequences of the subprime mortgage fiasco. The series, hosted by Professor Niall Ferguson is not exactly perfect and leaves out some details along the way. However, the presentation is worth your while and contains some nuggets of understanding that you can take to heart. At the end, this episode clearly shows what happens during hyperinflation, using the plight of Argentina as an example. America faces a similar plight, but has been immune so far because the dollar is the prevalent world currency, bolstered by foreign investment. The dollar as the chief currency could change and when it does, so will the fortunes of the nation. Right now we have a mighty wrestle going on between central bankers and many nations that could benefit mightily from a global currency change. A shift in that balance will mark the end to the status that the nation enjoys. 
