Free markets are for losers

You don’t have to believe me. The S&P says so. At the very heart of the supposedly free market, right there on Wall St., they’ve got no use for it. Standard & Poors announced a mass of ratings cuts for the biggest names in banking.

Bank of America and Goldman Sachs, … Barclays, HSBC, … Citigroup, … Morgan Stanley, Commerzbank, and UBS, [all] had ratings cut by one notch. …

But. But, but, but, and however,

it upgraded ratings on two Chinese banks, Bank of China Ltd. and China Construction Bank Corp. …

The upgrade for the Chinese banks has come at a time when there have been increased concerns about the health of the country’s banking sector. …

Analysts said while the Chinese banks were prone to the risk of accumulating bad debt, they still remain a safe bet.

“The key factor is that they are largely government owned, that means the risk to shareholders of these banks is quite low.”

Too funny. The joke is on me, thinking they believed all that free market eyewash.

8 Comments on “Free markets are for losers”

  1. bostonboomer says:

    ROFLOL! That’s hilarious. But of course none of these people really believe in free markets. They believe in socialism for the rich and fascism for the lesser classes.

  2. dakinikat says:

    There’s a real good argument in economics that a lot of what banks do is actually a public good and it should be provided either in the public sector or be heavily regulated. The payment services area–clearing checks and electronic payments–was essentially done by the FED for years. Some forms of lending are in the same category.

  3. ralphb says:

    Barney Frank said tonight the reason for those downgrades is someone finally understood that, according to Dodd-Frank, there would be no further legal bailouts for the TBTF banks.

  4. northwestrain says:

    “Free Market” is more like a religious ideal than anything resembling science — the US securities just downgraded seem to favor funding politicians who are religious rightwing nutbags.

    The Chinese Gov/politicians don’t believe in Christmas — but these guys DO believe in producing boat loads of xmas junk. So the bets are now on the Chinese banks — and it seems that the credit ratings are actually betting odds.

    I’m just following the line of logic about gamblers taking over the financial world.

    Good post by the way.

  5. dakinikat says:

    They’re raiding another occupy site …

    Live Video – Watching Police Staging Over 20 Buses #OWS #OccupyLA on

    • northwestrain says:

      From firedoglake — one of the comments on the riot of the cops in LA is that tweets are being blocked. 0bowma must be having fun. If homeland security is involved then so is da Prez. Typical passive aggressive crap.