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Commentary

Readings: Bank Elite, MFI, MoneyLife, 99ers

A Secretive Banking Elite Rules Trading in Derivatives by NYT. How the big bankers won’t let in the small guys into the market they control and keep opaque.

At Forbes, In India, Size Does Matter. On how the MFI industry has screwed itself by going national, rather than local. Yeah, that’s true of countries too – when they’ve borrowed from foreigners, it’s that much more palatable to say “let’s default”. And bankers, who only originated credit and packaged the loans they gave to other people. When you don’t know the person who lent you money it’s much more morally acceptable to default in a crisis.

From JagoInvestor, MoneyLife helps a real estate customer get his money back. Indiabulls had encashed cheques (blank cheques!) of a borrower without even lending him money. Gagan Banga, big shot at IB, was mailed – Sucheta at Moneylife has serious contacts – and he ensured recovery. She writes in a comment that  “Moneylife Magazine (www.moneylife.in) routinely does grievance redressal and that our success rate is over 80%.”. Impressive!

Calculated Risk: No help for 99ers. The supposedly cool extension of tax benefits (which will help some 2 million in the US that have been unemployed for 99 weeks now) is not so cool. 99 weeks is still 99 weeks, but you can start qualifying for it even right now. To the guys whose benefits end now, they don’t have much to celebrate. But after 99 weeks without a job, is it right for them to expect US govt. support? Oh well, the govt. still supports bankrupt banks and institutions. We are all socialists now.

And 800 more Radia tapes. That is a lot of transcribing left to be done.

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