Everyone needs money. But do we need banks?

In many years bank’s and finance and been instrumental to the development of democracies, like the one i grew up in. If memories serves me right, banks were somehow modest, conservative in their way of making money to their shareholders and they had a clear function in the communities where they operated. Banks, as we knew them, were important. They were part of the community of where they made their profits. They could only prosper if the community prospered so Banks were dependent of good clients, both private individuals, enterprises, farmers and small industry. If they went well, made a profit, where innovative and maintained a steady business, then the banks got paid and did not make losses. They made a healthy profit.

It is a romantic memory, but never the less, there is a lot of truth in that. It was how it was supposed to be.

With the entrance of fast evolving technology the Banks saw a opportunity to make any bankers wet dream come through. With technology, and some bright math geniuses, the Banks began to create sophisticated and highly sophisticated systems for trading and speculation. The wet banker dream came through, and the Money Machines were created. The Money Machine evolved, expanded and became the golden nugges of any bank.The owners of the Money Machines could not purchase enough sophisticated software, computer power and math scientists . It was a matter of “the more computer power, the more profit” It still is. And the best of the geniuses was rewarded with Nobel Prices too. (later their system broke)

While these Money Machines still provided a function in their communities, they expanded and scaled to an extent where everyone forgot the value of money they were processing. The Money Machines operated first on a country basis, then they expanded to neighbouring countries and finally the ultimate Money Machines were operating on a global scale. While this took place, the owners of the Money Machines, were busy bees lobbying politicians for less regulation and control. The Money Machines, lobbyists claimed, were foll-prof and, more importantly, they claimed that the continuous operation of the Money Machines contributed well to the greater good of the societies in which they paid their taxes. To a large extent this was a hard argument to be up against for the politicians , and they joined the Lobbyists of began to develop designer-politics.  If they could count on the Money Machines continuous supply of tax money to them, they could get re-elected and stay in power as long as long as they were not revealed their endeavours and they could through the voters a bone now and then. And, by the way, the Lobbyists paid large sums to the political parties that supported them.

The break down of the Money Machines came in 2008 when the complexity got out of hand, and the people who was supposed to know all about Collateralized debt obligations (CDO), Synthetic CDO’s and Hybrid CDO’s  simply could not explain what was the assets backing these financial instruments. They did not care, and those who did, was removed from influence and sent into the darkness, while politicians, media and who have you, just just kept a straight face and continued the party at full speed.

The trading and transactions was fast and the volume was high, incredible high. These instruments attached them selves to a bobbling real-estate market , but it could have attached it self to any bobble. It is an uncontrolled evil that will swallow anything with the slightest chance of a automated profit. However real estate we perfect because this was attached to peoples basic need to have a roof over their head. The Money Machines controlled the market and the politicians. There were no limits to the freedom of operation for the Money Machines. Any concerns? No.  But just to make sure the Money Machines also created insurance  products (Credit Default Swaps) so the Money Machines – or the CDO’s that fuelled them – was insured if something went wrong. Money was free, happiness was enormous, and no-one questioned anything for real.

Today we know the result. We have seen a crisis on a global scale. Women, children and men are now paying for the system failure and the lack of governance from the politicians. The politicians deny any involvement in the action. They just create a new set of designer politics that will keep them in their seats. They speak with a tough tongue about the banks, but behind the scenes nothing happens for real.  The voters don’t have a real choices. If they have a job, everything is now more expensive, and the salaries is not following. If they do not have a job, the outlook is kind of hopeless compared to their old standard of living and you are forced to make some tough decisions because of things out of your control.

In Denmark the owners of the Money Machines is now posing what they call New Standards. These standards are all about getting write of the now poor and bad clients in a hurry. They cut their losses from wild investments in financial adventures. Today this means less value for more tax money payed by the average family.

Danske Bank is leading the way in the country where I live. Even though I refer to Danske Bank here, they are not alone. All the other banks will follow their sad example. I was visiting the bank some weeks ago to support a dear friend of mine in her efforts to buy her own apartment. They were really nice people at Danske Bank. I have to admit. We were even offered coffee in a nice office. She had a good offer on the table, a thorough walk through of all the details. It was all good and it stayed that way after contacting other banks for a competition check. At the end, it was all about getting the best deal for my friend, make sure she felt comfortable with that huge decision of committing her self to one of the first, and biggest, decisions in her life.

My friend, who never had any debt and always pays her bills, was categorised as a Basic client. But if she entered into the arrangements proposed by the bank, she would immediately be granted a status of an Exclusive client. She would immediately rise in hierarchy of the New Standards. Or should be call it Bonus Program?

Danske Bank also calls their “new” approach to clients for New Normal. But there are really nothing new in their attitude or business model. Except that they are forcing people out the bank, laying off staff, closing branch offices while they post billion annual profits for 2012. Moral? No, there are none in that world. The only ones thing about moral issues are us, the tax payers who, via the Lobbyist infected politicians pored billions of tax payer Euros into the banks in order for them not to break down and tear society  down with them.

Certainly Too Big To Fail actions, payed by you and me. But certainly also Too Big To Regulate

Bank’s, owners of the Money Machines, you suck – you really suck! While you lay off people in a time of crises, in order to strengthen your positions, get larger  and continue to create huge profits for your self- what do you do? You put billions in your own pockets. You make your self stronger when most are suffering and having a hard time. You force money out the pocket of those who have only little, or no choice at all. You are not at all responsible to the communities you grew up in, but you expect us to be that for you. You even have the gut’s to talk about New Standards, and try to talk your self into good standings with us. Words but no responsibility or respect for the people you ripped off.

You don’t give a fuck about anyone else than you self.

So why should we give a fuck about you? Yes, we need capital to have things happen and be in balance. In a responsible way that is. So we can grow our children, make them good members of the communities where they one day will make contributions to others because of what they do. But we do not need your greed. We know that every time you open your mouth the only purpose is to get a profit. What drives you is your greed. Michael Lewis (author of Liar’s Poker  among other great books) called what you do for Fuck the poor. Very accurate wording. 

Here’s the shitty deal you, the Banks, are facing.

It’s obvious to us what your purpose is. You have removed your selv from being a trust worthy part of our infrastructure and communities. You have distanced your selv from serving the communities from where you want to have your profits’s. You calculate value without looking out the window. You look into your Money Machines make make up your mind when you see short-term gains and profit. You have hung-up. You have disconnected. It may not be any time soon, but new institutions will arrive in the communities and they will be successful because of what they do and how they contribute. They will do that, because banking is necessary, but banks the way we know the – New Standars or not – the way we have them today, are not.

Your Money Machines has become Doomsday Machines. Your own.

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