We should all know by now that we live under the vomit of a stinking corrupt system controlled by the financial Mafia. Greece immediately comes to mind, a country where they brought to bear the full venom of their power, to overthrow the government and destroy the social fabric of the country. After five years of "austerity", which translates as poverty and deprivation for the people and the plundering of the country's assets, they have now being shackled to a perpetual regime of higher taxes, lower pensions, more unemployment, a worsening of working conditions and greater plundering of the country's assets. All this in an attempt to protect the financial Mafia's phoney house of cards balance sheets.
The financial Mafia and national governments usually work hand in hand, to the benefit of the banksters, as they always hold the upper hand. When a government doesn't play to their rules, it, and its people are destroyed, Greece for example.
There is never a time, now or in the past, when these banksters, working for the financial Mafia, have got involved in a country to the benefit of the people. Everything they touch, create or modify, is to the detriment of the people and riddled with greed and corruption. From Africa, to South America, Europe to Asia, their poison has ravaged through the lives of the ordinary people, creating poverty, deprivation and wars. Just a thought, If the banks are too big to fail, they should be owned and organised as a public utility.
The latest piece of corruption and greed to come out of this cesspool, is connected to UBS bank. This from Politics in the Zeros:
$72 billion in now-toxic Puerto Rico bonds are stashed away in supposedly conservative bond funds and retirement accounts. Moody’s says the probability of default is now 100%. Some of the bonds have no legal protection and their recovery rate might be 33 cents on a dollar. Bonds with better protection will still get clobbered. Recovery on those will be 65-85%.
That’s not the worst of it. UBS (and probably lots of other banks too) underwrote some of the bonds and put them in their own closed-end funds. These funds are not traded. UBS sets the price. Some investors bought these bond funds with money borrowed from UBS and may have used them as collateral for more “investing.” However, UBS just decreed the collateral value on their very own Puerto Rico closed-end funds is now zero. That’s right zero. UBS is saying their own bonds are worthless. Expect a festive number of lawsuits.
Clients were warned that they can no longer use these funds as collateral for loans, even those loans they used to buy these funds with in the first place.Thus, they will have to come up with new collateral very quickly or UBS may sell the bonds and come after them for the balance. Let’s be clear. Some of them are retirement accounts. All of them will take big hits.
Of course, banks made lots of money by underwriting slop everyone knew was risky then foisting it off on customers and clients. It’s all just terribly tragic. There will be investigations. UBS will promise to sin no more. The government will levy a stiff fine (or is this a protection racket.) No one will go to prison. Lots of people’s retirement accounts will drop in value. None of the banks care what happens to Puerto Rico.