Tuesday, May 11, 2010

Saved by the drug dealers?

Wow, so it wasn’t Turbo Timmy, the AIG rescue, the alphabet soup of Fed currency facilities or the currency swaps that saved the global banking system. The marginal suppliers of capital, according to the UN, were drug lords. That means that the UN is saying that the banks went into the money-laundering business on a much greater scale than before as a matter of survival. I would presume if this is accurate, it would also mean terrorist groups were able to more more money through the banking system.

From the Guardian:

Antonio Maria Costa, head of the UN Office on Drugs and Crime, said he has seen evidence that the proceeds of organised crime were “the only liquid investment capital” available to some banks on the brink of collapse last year. He said that a majority of the $352bn (£216bn) of drugs profits was absorbed into the economic system as a result….

Costa said evidence that illegal money was being absorbed into the financial system was first drawn to his attention by intelligence agencies and prosecutors around 18 months ago. “In many instances, the money from drugs was the only liquid investment capital. In the second half of 2008, liquidity was the banking system’s main problem and hence liquid capital became an important factor,” he said.

Link Naked Capitalism

So it wasn't the "Masters of the Universe" who saved us? It was their dope dealers?

But hey, that's from the same organization that tells us Global Warming is destroying us.

Hat tip to SeeEmDee at Talk Left.

submit to reddit On Twitter I am Lesabre1

On who Kagan is

In her capacity as editorial chairman during her junior and senior years, Kagan spent nearly every evening at the ‘Prince’ newsroom. But Bernstein cautioned that Kagan likely did not write all the editorials. “That wasn’t her style ... She was a very collaborative person,” he said.

One set of unsigned editorials published in the spring of 1980, written in response to the federal government’s discussion of reinstating draft registration, attacked the militaristic identity the country was headed toward. The nation was “unfortunately” moving toward “an era in which myopic and over-sensitive ‘national pride’ precludes the thoughtful search for alternatives to an unnecessary draft registration,” it said.

How exciting. A President we knew nothing about before his election nominates someone to the SC who we will know nothing about before the confirmation.

Trust me. I'm from headquarters and I'm here to help you.


And a hat tip to MKS over at Talk Left.

submit to reddit On Twitter I am Lesabre1