Dean
18th April 2010, 05:36
...and centralization of economic power:
The interaction of economic entities, when correlated toward mutual self interest, consistently serve an increasingly marginal population. Typically, this is called "conflict of interests:"
In any case, it has become increasingly clear that tax evasion is but a piece of a troubling larger picture. The states of New York, Texas and Massachusetts sued the bank in 2008, accusing it of misleading investors about risks in its auction-rate securities market. UBS executives dumped their own holdings when the supposedly safe investments took a nosedive, yet continued to recommend them to customers. In Puerto Rico, a Bloomberg News reporter found (http://www.bloomberg.com/apps/news?pid=20601109&sid=a7jT9c2Pr1jg&refer=home), UBS had created its own closed-loop system for generating profits —it advised the Commonwealth to issue bonds, marketed the bonds to investors through UBS mutual funds, and then loaned the mutual funds money so they could buy the bonds. As James Cox, a Duke law professor and expert on finance and law said at the time, “I’ve never seen such a blatant series of conflicts of interest.”
The story runs deeper (http://www.whowhatwhy.com/the-game-that-goes-on-and-on-2.html), and it only indicts the state as an enabler of capitalist interests - that is, the market works, and the state has proved in its existence as a market defined system (that is responsive to sale - called bribery in politics) that capitalist propertarianism is the driving feature of political bodies today.
The interaction of economic entities, when correlated toward mutual self interest, consistently serve an increasingly marginal population. Typically, this is called "conflict of interests:"
In any case, it has become increasingly clear that tax evasion is but a piece of a troubling larger picture. The states of New York, Texas and Massachusetts sued the bank in 2008, accusing it of misleading investors about risks in its auction-rate securities market. UBS executives dumped their own holdings when the supposedly safe investments took a nosedive, yet continued to recommend them to customers. In Puerto Rico, a Bloomberg News reporter found (http://www.bloomberg.com/apps/news?pid=20601109&sid=a7jT9c2Pr1jg&refer=home), UBS had created its own closed-loop system for generating profits —it advised the Commonwealth to issue bonds, marketed the bonds to investors through UBS mutual funds, and then loaned the mutual funds money so they could buy the bonds. As James Cox, a Duke law professor and expert on finance and law said at the time, “I’ve never seen such a blatant series of conflicts of interest.”
The story runs deeper (http://www.whowhatwhy.com/the-game-that-goes-on-and-on-2.html), and it only indicts the state as an enabler of capitalist interests - that is, the market works, and the state has proved in its existence as a market defined system (that is responsive to sale - called bribery in politics) that capitalist propertarianism is the driving feature of political bodies today.