Thursday, September 17, 2009

[join the dots] bailout in indonesia queried


The stories continue to come in from around the world on this issue. What has changed? Has banking become more corrupt or is it that the media has now had the shackles rmoved and are reporting on it finally? If so, why now? What's behind the obvious PTB authorization of bad press for bankers?

This one is form Jakarta:

When the global financial crisis was at its height last November, Indonesia's Century Bank faced a severe liquidity crisis. Spooked depositors ran on the mid-sized consumer-oriented bank, depleting its capital base and raising fears financial contagion would have a domino effect on other wobbly financial institutions.

President Susilo Bambang Yudhoyono and his team of technocrats responded by providing Century Bank a financial lifeline soon after its management declared the bank was insolvent on November 21, 2008. The initial 700 billion rupiah (US$70.9 million) cash infusion was designed to allay depositor fears and provide sufficient liquidity for normal operations.

But subsequent government funds funneled through the bank drove the total bailout bill to over 6.76 trillion (US$677.4 million), four times the amount approved by parliament. That's raised questions among analysts and opposition politicians why a middle-sized bank required so much capital to be stabilized.

It certainly would raise questions but an even better question is why it happened in Britain and the U.S. simultaneously and then why it also happened in far flung corners of the world along exactly the same lines, even in Iceland.

Any investigator worth his salt looks for connections, common factors, in any possible crime he's investigating - it's basic police work to do so and to establish motive and modus operandi.

OK, so again - what's the connection between a U.S. housing crisis and a Jakarta bailout? How does the script come to be the same? Does the word "global" hover on the tip of your tongue?

No comments:

Post a Comment

Comments need a moniker of your choosing before or after ... no moniker, not posted, sorry.