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Systemically Important Financial Institutions

January 2, 2012

All for One, and One for ___?

The world is divided into two groups, dear reader.  In the olden days the one group was called “Aristocracy”, the other group “Commoners”.  Coincidentally, if one were to count noses of the members of the two groups, it worked out to be a ratio of , umm, yeah, ahhh,  roughly, on average, over the span of time from zero to infinity, integrated with “n” approaching zero as uhh, ONE to NINETY-NINE.

What a fargin coincidence, EH?

1 in 99.  And here in the year of 2012, those two groups are referred to, (by Old Uncle Milton, at least) as the ruling class and the country class.  Ever since Codevilla wrote that fantastic article  of his, clearly separating the groups by either wanting to exert power and control over everyone else, or wanting to be left alone ; the “only ones” are easily sorted out from the “ninety-niners”.  Either gaining power over all   or   living and letting live.

SIFI- systemically important financial institutions

So when you hear about a SIFI, you know – one of those organizations that are *too big to fail* and you think about the people that run them, and you think about the people that *regulate* them, and decide that they are, indeed, too big to fail, where oh, where do you suppose that these people fall into one or the other of the two groups above?

Where do you fit in?  Where does Old Uncle Milton fit in?  And why is a guy that writes a blog about *Good Food* all concerned about SIFI’s???

Good questions, those.  When we visit the blog written by Gonzalo Lira, we have a chance to learn about SIFI’s, and especially about the MF Global SIFI.  And how the ruling class ripped off (in particular) farmers, and other members of the country class, in order to protect JPMORGAN. LINK HERE

And while there is much that Old Uncle Milton does not have in common with the Occupy Wall Street crowd, there is this one thing that we have in common- when the fit hits the shan, WE will not be getting bailed out.  SIFI will.

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