The average Cypriot household had a phenomenal net worth of €670,900 in 2010 – over three times that of German households. That wealth had been sucked out of the cesspool of corruption that the banks and the government were, until neither had a drop of lifeblood left. Now the party is over. And you can almost hear the snickering among European politicians.
Corruption
The French Government Spirals Elegantly Into Self-Destruction
by Wolf Richter • • Comments Off on The French Government Spirals Elegantly Into Self-Destruction
France might not even notice if the Eurozone fell apart—that’s how tangled up it is in the Jérôme Cahuzac fiasco that blew up with phenomenal effect. Former Presidents Chirac and Sarkozy were dogged by investigations and trials that laid bare misdeeds they personally had been involved in. By contrast, the Cahuzac fiasco doesn’t implicate President François Hollande. Not yet. But it’s tearing up his government.
Intuit’s Long Hard Fight To Stick It To The Taxpayer
by Wolf Richter • • Comments Off on Intuit’s Long Hard Fight To Stick It To The Taxpayer
“The government imposed the income tax burden in the first place,” said former California Republican legislator Tom Campbell about the process of filing tax returns. “So if it wants to make it easier, for heaven’s sake, why not?” But two companies that sell tax preparation software and services have been lobbying tooth and nail against making it easier—and won.
Will the Real Clowns Please Stand Up?
by Wolf Richter • • Comments Off on Will the Real Clowns Please Stand Up?
Contributed by Don Quijones: Italy has Beppe Grillo. But with European governments reeling from self-inflicted crises, and the euro debacle descending into a tragi-comic farce, one wonders who the real clowns are – especially here in Spain, where ministers gorge themselves on the public purse, leaving behind a trail of evidence so obvious that even the mainstream media can’t ignore it.
‘Regulatory Capture’ Emasculated The Regulators Of Megabanks
by Wolf Richter • • Comments Off on ‘Regulatory Capture’ Emasculated The Regulators Of Megabanks
Senator Warren set him up brutally. HSBC had admitted “to laundering $881 billion that we know of from Mexican and Colombian drug cartels,” she said. David Cohen, the Treasury’s point man, twitched on her skewer. Why were megabanks and their bankers able to dodge serious punishment for crimes they’d been committing for years? They’re officially too-big-too-jail. And a deeper problem: regulators have been taken over by the banks.
Budget Hawks Till Something Gets Cut In Their Districts
by Wolf Richter • • Comments Off on Budget Hawks Till Something Gets Cut In Their Districts
“Preventing future acts of terrorism” is the most critical foreign-policy goal for Americans. Next: proliferation of nuclear weapons, energy supply, trade policies, etc. Fighting off Soviet tanks rumbling towards Frankfurt didn’t make the list. Yet Congress, in its infinite wisdom, is still pushing weapons designed to do just that, whether the Pentagon wants them or not.
Now A Vast Political Espionage Scandal To Top Off The Sordid Corruption Scandal In Spain
by Wolf Richter • • Comments Off on Now A Vast Political Espionage Scandal To Top Off The Sordid Corruption Scandal In Spain
Cyprus, ‘A Money Laundering Machine For Russian criminals’ – Amounts, Flows, and Mechanics
by Wolf Richter • • Comments Off on Cyprus, ‘A Money Laundering Machine For Russian criminals’ – Amounts, Flows, and Mechanics
Russia’s booming underground economy with its dizzying flows of illicit oil money is at the core of an 84-page report by Global Financial Integrity. It advises the Russian government on how to tackle this problem. But buried deep inside is a gem: the flows and amounts of Russian “black money” into and out of Cyprus.
The Confidence Crisis In Spain Sends Out Shock Waves
by Wolf Richter • • Comments Off on The Confidence Crisis In Spain Sends Out Shock Waves
It should have been an exciting event for Spanish Prime Minister Rajoy: a tête-à-tête with German Chancellor Merkel. Afterwards, he’d stand next to her, illuminated by her glory. He’d brag about implementing structural reforms, cleaning up banks, and moving Spain forward. She’d endorse him with her benevolent smile. Instead, it was a slugfest about corruption.
Medicare, The Corporate Welfare Program
by Wolf Richter • • Comments Off on Medicare, The Corporate Welfare Program
Congress excels at enriching corporate welfare programs—in this case, Medicare. Ironically, it happened while Congress is struggling to rein in Medicare’s gargantuan deficits with belt-tightening measures that would hit people who paid into the system throughout their working years. This time, the prime beneficiary was Big Pharma, particularly one company….