Swiss banking giant UBS AG said Monday it will write off a further $10 billion on losses in the U.S. subprime lending market and will raise capital by selling shares to Singapore and an unnamed investor in the Middle East.This is basically the same scenario as Citibank which also sought funds from the Middle East. The worldwide financial system is becoming more and more dependent on funds from the most volatile area in the world where human rights take a back seat to fundamentalists.
It is funds from this area of the world that finance most of the terrorist groups now growing worldwide. Is it really smart to sell off our financial systems to these same people?
This is what happens when greed and stupidity meet in the financial marketplace. The subprime mortgage debacle now has national security implications. This is all the result of a lack of oversight. The Bush administration thought industry should police itself. We all see how that has worked out.
I have a friend who was recently employed at UBS but was terminated as a result of these huge losses. That is the human cost of this greed and arrogance but those at the top will walk out with millions while those like my friend will struggle to make ends meet.
That is current day America. It is time for a real change and it can not happen without citizen participation. I predict the economy will become the number one issue in the 2008 election as the pain and suffering around this subprime disater grows.