An Interlude about some People in Money

A brief Article in a large local financial e-paper reminded me of what a beef cattle farmer once said about coincidences.  “If you drive out to look at your 100 price herd in the large grazing area on the escarpment and found an open gate and one dead cow down in the bottom of the ravine it may be a coincidence,” he said, then became whimsical and went on with, “but if you get to the enclosure and find the entire herd gone with 200 yards of a strong well built fence down it cannot be coincidence and it’s time to call a posse together and issue live ammo.”

 If you want to, you can read the Article by pressing HERE

An immediate glaring coincidence in the Article is the short length [heck it fits well to describe it in this manner]; it offers not much more than a cursory glance at the events.  A large institution name of Standard Bank had offered to borrow some well known shares from a Union Pension Fund; the Fund having agreed to lend them the shares and in this way a deal was made for shares worth 160 million smackers in 2002.  Both Parties honored the agreement and it was fulfilled when Standard handed the shares back in 2007.

 There are too many coincidences for someone who worked in Pension Funds for over 40 years as I have told you before.  Shares had reached a bottom in 2002 at a time when interest rates were relatively high; then the share market went sky high from end 2003 and back to the bottom in 2008.  Some fools went on to buy shares in 2008 and still haven’t got their money back though some other shares have recovered while interest rates have been tumbling to an almost all time low.

 No other details are provided about the glaring coincidences in the foregoing paragraph or on what happened in 2012; another glaring coincidence that the Article merely states that someone from the Union recently came forward and claimed that if the 2002 deal was not done the Union could have made anything between 500 and 700 million on the shares.  An arbitration Court ruled in favor of the Union and Standard was fined 528 million.

 All nice and quiet like gentlemen, no argument or dirty laundry; the Bank remains quiet; it seems as if everyone is entirely happy; like in end of story happy, you know.

 It’s time for the posse, boys; this can’t be a coincidence, and it must be the equivalent of one thousand price beef cattle that we are talking about at this time.

 I have never heard of a large institution or a bank borrowing shares that they are asked to do by any Pension Fund, even a Union one.  Standard Bank like all other major players in money have a lot of other people’s money to buy shares on the Stock Exchange; heck they buy and bundle them, package them together with options and derivates on the same share; they give out mortgages then package and bundle them too; they sell and package derivatives and futures, shucks, even future options on derivatives; for more money to buy some more shares without ever using one penny of their own money.

 Why did they borrow those Union shares and on what basis? How much grease was used?  Which hand carried the grease, or who held out the hand to be greased?

 Why do they all act as if they hope that this story will die?  In America this would be Front Page Stuff in Bold in every Newspaper including the New York Times.

 My next Post will be on the Demise of Money to complete my Trilogy on The Origin, Evolution and the Inevitable Demise of Money.

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5 Responses to “An Interlude about some People in Money”

  1. Cheechdog Says:

    Hello Ike, I believe we here in the US a just about to the point of having nothing more than a fistful of pretty colored paper to show for our labour.

    We have been flimflammed by banks and our own government for many years.

    I’m not so sure you will recognize the US in another 10 years.

    • Ike Jakson Says:

      Hi Cheech

      I know, ole Friend, because I still read. The eye is now really getting worse but I keep up to date.

      The big shocker in the affair in my Post is that it is Standard Bank, hitherto regarded as an ethical institution, but these things don’t really shock the way they used to.

      Money has no conscience.

      Thanks for dropping by.

      IkeJ

  2. nolanimrod Says:

    Ike, m’boy, got my computer working sort of. I thought it was trashed but I poked around and found a computer repair film on You Tube and found out it was just the light bulb at the bottom of the display screen. Funny thing was since it is a LCD screen the image is actually there but without the light bulb (it is a fluorescent bulb about a foot long and a 32nd of an inch wide – weird looking) you can’t see it unless you shine a really bright flashlight on it. And to get it out and replace it requires the manual dexterity of an accomplished neurosurgeon so I have ordered a who new display. The displays are usually about 20 US but the computer I have, a Lenovo Thinkpad (which I bought because it was refurbished and really cheap – hah!) has to have one costing 85 US.

    As to the assertion in your post that were such financial chicanery to occur elsewhere (including in the elsewhere the USA?) the papers would be alive with it is completely off base. So long as something has even a slight potential to reflect negatively on Obama or his administration you will never hear about it or if you do it will be in the middle of page five with a small headline. There has been a string of really weird huge deals among JP Morgan chase, Goldman Sachs, Bank of America, Citibank that went along without comment and then there is the Chairman of the Fed restarting his money-printing scam (to buy up, ahem, mortgage-backed paper and US Treasuries).

    There has also been the issue of Obama’s ATF forcing gun dealers to sell arms to Mexican drug gangs and watching on TV while an ambassador is slaughtered and doing nothing about it, but there, too, anybody who says anything is prima facie a racist so nothing is said.

    The election was proof that most people don’t care about this so I don’t believe, as I used to, that he would need some ploy to get most of the privately-owned guns scooped up before he can really take over. I think people are so demoralized that they won’t even care so long as their food-stamp card still works and their unemployment benefits keep getting extended.

    Poor Germany! When they get done paying for the European welfare state they’re going to have to start on ours.

    • Ike Jakson Says:

      Good Morning Nolanimrod

      Thanks for dropping in. Yes, it is a World concern. The South African Standard Bank also happens to be my bank but the stories about the share loans take the cake. You must read the SA E-paper article and the comments, plus what the Court said.

      Internet Fraught is growing by the day.

      IkeJ

  3. Ike Jakson Says:

    Thanks Greg

    Keep well; it is good to know that you guys are keeping the fort down under.

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