The Biggest Price-Fixing Scandal Ever | Politics News | Rolling Stone

The Biggest Price-Fixing Scandal Ever | Politics News | Rolling Stone

As people know, I have been writing about the evils of interest rate swaps being forced upon business borrowers to protect against an inflation that will never come because of the swaps. This circular system increases the costs of doing business on main street. It creates demand for treasuries, as collaters, meaning that interest rates are locked in at low levels for a long time. This robs citizens of a fair return on their money.

The hollowing out of main street is made even worse by bank fraud, libor scandals, and anything that can push the interest rates down. This hurts the position of the borrowing companies, who have to take the high fixed interest rate side of the swap.

Well, now, Matt Taibi is saying that there is another scam associated with interest rate swaps. This scam affects the price of the interest rate swaps themselves. This scam is the manipulation of  ISDAfix, which is the benchmark number for pricing the swaps.

The same players accused of LIBOR fixing are now accused of interest rate swaps fixing. They are Barclays, UBS, Bank of America, JP Morgan, and the Royal Bank of Scotland. These banks have earned a reputation for their attacks upon main street with toxic loans and the rest. These bad boys, with the help of the Fed and central banks, pretty much control finance and thus control the world.

Anyway, read Taibi's article. The courts are on the side of the banks. The governments and businesses who are being screwed by these big banks should just walk away from the toxic loans en masse. At least that is my personal opinion. We are all paying by having crucial services cut so the banks can exact tribute from private companies and local government.

And many have called this state of affairs mass criminality.


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