It’s the Ecomony, Silly


Viikko 8


Year: 2013
THW give ECB, IMF and WB more power to solve the financial woes that plague the world right now
Role: MP (opp.)

The international crisis in finance began in 2008. Now it is 2013 (2017, really). During the five years that have passed, it has become clear what went wrong. One clue came from Charles Ferguson’s award-winning movie Inside Job, but the problem with the film was that it did not simplify the game other than in terms of infographics. My ambitious goal is to simplify to such a degree that even children can understand the roots and nature of the collapse.

Let’s put it like this: comparison with a card game. The game of choice is an old one going by the name of Old Maid. The name is a reference to how some people, men or women, are left without a spouse in the game of Life to share their joys, money and sorrows with. Hence the name. It might also be called by any other name that evokes outsiderdom, marginalisation, being the odd one out etc. The idea of the game is that most other cards represent points or wealth, whereas the primary objective is to be among people who avoid getting the freak; the old maid/boy, spinster, widower or widow, whatever you call h**.

In finance, the wide boys created a bad card of their own: Subprime housing mortgages, aimed at unemployed or otherwise discredited people. The idea was to pass this bad card onto any other player in the game, until things came to a head. The card or casino game would come to an end by the time those subprime loans turned out worthless and defaulted on. Post-game-over, whoever had that bad card would be the loser, but the compensated loser, as it later turned out that the losses would be paid for from various taxpayers’ pocket. Changing that card from hand to hand was called a ”credit-default swap”. This much we know to be true.

In other words, the big boys created a type of gamble that would generate money to them while they played, and whose loser would be compensated for by other people than the players themselves. It would be a win-win situation for the players. It would also be a case of privatising profits and socialising losses, an accusation that has often been repeated and which seems to be legitimate. The big boys played with other people’s money, pocketed a lot of it and made sure there would be another round on the horizon.

What should be done about this? The same laws that apply to illegal gambling should be used against Wall Street. Mob bosses of the kind that were seen on the Sopranos are mainly known to stage illegal gambling sessions. A sports-goods dealer took part in one of them and lost his business and fortune. A lot of other businesses have also gone under thanks to the 2008 shady deals. Barack Obama did not do anything to fix any issues of this kind. He was probably warned from high enough to not do anything. From a legal point of view, people who took part in this game of ”Old Maid” are equally complicit and culpable. Some sort of a class-action suit should be filed for their undoing in the near future(s). Gambling on anonymous people’s money is worse than a Ponzi scheme with a name.

What would IMF, ECB and WB do about someone or some country losing control of their finances? They would pour some new money to them, so that they could start all over again, flush with cash. Money can be made from thin air. It’s not a solution in itself, if it is not earned through honest work. Also, it comes with an interest.

For this reason, our side is opposed to any help from the aforementioned banking institutions. They couldn’t fix anything that existing legislation couldn’t fix. They are more a part of the problem than part of the solution.

Thank you.

Arvio: Puhe ottaa tietäväisenä kantaa akuuttiin, vaikkakin jo osittain hälvenneeseen ongelmaan. Siinä esitetään lääke, joka saattaa olla jo vanhentunut — hieman samaan tapaan kuin antibiootit eivät enää paranna kaikkia bakteeriperäisiä epideemisiä tauteja. Toisaalta kyse ei ole välttämättä oikeassa olemisesta vaan vahvan vastarinnan tarjoamisesta. Oman puolensa viimeisenä uutta ainesta sisältävänä puheena tämä lopettaa näpäkästi.



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