The Vampire Squid Chronicles

What price the new democracy? Goldman Sachs conquers Europe

Even before the upheaval in Italy, there was no sign of Goldman Sachs living down its nickname as "the Vampire Squid", and now that its tentacles reach to the top of the eurozone, sceptical voices are raising questions over its influence. The political decisions taken in the coming weeks will determine if the eurozone can and will pay its debts – and Goldman's interests are intricately tied up with the answer to that question.  

Where Did It Go?

One more investment firm in trouble, another hole in 'customer accounts'.   Link.

Messing Up The Present For The Future

Commodity futures are supposed to help producers (e.g., farmers) and consumers of commodities to hedge against price changes. But of course that is not how it is working. From Business Line:

An official probe by the US Senate found “substantial and persuasive evidence” that non-commercial traders pushed up futures prices, disrupted convergence between futures and cash prices and increased costs for farmers, the grain industry and consumers.

And:

A study by Christopher Gilbert (‘Speculative influences on commodity futures 2006-08', UNCTAD Discussion Paper No 197, Geneva) has found that index traders amplified price volatility to the extent of 30 per cent in oil and metals prices and around 15 per cent in foodgrains prices.

In Thrall Of Finance

Interesting article from Deccan Chronicle:

In the ongoing war between international finance capital and the citizens of the world, it is remarkable how many recent battles finance has won. Recent events have shown how economic policies of governments and the socio-economic rights of citizens in both the developed and developing worlds are increasingly hostage to the whims of financial markets, based on fear of the havoc they can create. Even more than before, the world seems to be enslaved by finance.

Link here. Reminds me of the ancient mariner and the wedding guest.