Everyone loves a good conspiracy theory debate. Regardless of whether you argue for it, or against, there are times when suddenly the ramifications for plausible truth are realized that overshadow the conspiracy. This is where the plot of truth can get far more sinister than the imagined conspiracy ever could.
It there is a better anecdote for everything the IMF stands for than the hedge fund of its former head, disgraced Dominique Strauss-Khan, going broke days after his partner, Thierry Leyne, 49, commits suicide in Tel Aviv under mysterious circumstances as reported previously, and subsequent revelations exposing at least one instance of fraud at the financial firm, we have yet to hear it.
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The summer, thankfully, has been largely bereft of the dismal trend of bankers committing suicide, but as Bloomberg reports, Thierry Leyne, a French-Israeli banker and partner of Dominique Strauss-Kahn, the disgraced former chief of the IMF, was found dead Thursday after apparently taking his own life by jumping off the 23rd floor of one of the Yoo towers, a prestigious residential complex in Tel Aviv. This is the 16th financial services executive death this year.
In modern times, war is never what it seems. Mainstream historians preach endlessly about grand conflicts over territory, resources, political impasse, and revenge, but the cold hard reality is that all of these “motivations” are actually secondary, if they are relevant at all. If you really want to understand the past, or the intricacies of war, you will be lost unless you accept that most conflicts are designed; they are not random or natural. They are not the product of too much national sovereignty or individual liberty. No; traditional war is a tool for the organized ruling class. It always has been and always will be.
Three years after being accused of sexual assault, removed from an airplane in NYC, and later having the charges dismissed on an alleged out of court settlement, former IMF chief, Dominique Strauss-Kahn (DSK) is planning to leverage his status - as an expert on global finance - as well as his thick rolodex to raise a $2bn hedge fund in Asia. As WSJ reports, the fund, which is awaiting regulatory approval, will "invest based on Dominique's analyses," and like most global macro funds will "aim for steady capital returns" with "no leverage." Ironically, given his new role as hedge fund marketer, DSK faces another case in France on charges of "aggravated pimping."
Men have had their stab at making the world into what they wanted and they made a pretty poor show of it all we might say when we look at the economy.
In the aftermath of the global financial crisis, world leaders repeated a soothing mantra. There could be no repeat of the Great Depression, not only because monetary policy was much better (it was), but also because international cooperation was better institutionalized. And yet one man, the American former intelligence contractor Edward Snowden, has shown how far removed from reality that claim remains. Prolonged periods of strain tend to weaken the fabric of institutional cooperation. The two institutions that seemed most dynamic and effective in 2008-2009 were the International Monetary Fund and the G-20; the credibility of both has been steadily eroded over the long course of the crisis. The Snowden affair has blown up any illusion about trust between leaders – and also about leaders’ competence.
While this story is not Friday humor, it may explain the preponderance of "erect hockeystick" formations in IMF's legacy projection charts. Former IMF head Dominique Strauss-Kahn is no stranger to sexual scandal - in fact Anthony Weiner may learn a thing or two from the man who once upon a time was said would be France's next president. However, being charged with "aggravated pimping" may be a new low even for DSK, or new high if in the New Normal it is finally 50 Cent who sets ethical and moral standards. The reason for the lawsuit is that during numerous sex parties which DSK had attended in various cities over the years, there were prostitutes also present, often times in groups.
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It looks like the International Monetary Fund has been jinxed. It’s fated. It’s doomed! The next managing director should start wearing garlic around their neck already or at least burn sage in their office to ward off evil spirits.
It has been our contention for a very long time now, that the reason most people in positions of power do absolutely nothing for the good of their respective societies even in the face of total systemic collapse is not simply greed, corruption and stupidity. They are totally compromised. As we see in this amazing article from the NY Times, former IMF head, Dominique Strauss-Kahn, lived a decadent lifestyle straight out of Stanley Kubrick’s final film Eyes Wide Shut...
Courtesy of Bloomberg, below is a compilation of the key dates to know for the first French socialist president since Francois Mitterand.
What a difference a month makes. About 4 weeks ago the European crisis was "over" - French President Sarkozy exclaimed that: “Today, the problem is solved!” Christine Lagarde, former French finance minister, and current IMF head following the framing of DSK, added that “Economic spring is in the air!”... Fast forward to today when following the inevitable end of the transitory favorable effects of the LTRO (remember: flow not stock, a/k/a the shark can not stop moving forward), the collapse of the Spanish stock market, the now daily halting of Italian financial stocks, the inevitable announcement that shorting of financials in Europe is again forbidden, and finally the record spike in Spanish CDS, Europe is broken all over again. Which brings us again the Sarkozy and Lagarde. The Frenchman who is about to lose the presidential race to socialist competitor Hollande (an event which will have major ramifications for Europe as UBS' George Magnus patiently explained two months ago), no longer sees anything as solved, and instead is openly begging for the ECB to inject more, more, more money into the system to pretend that "problems are solved" for a few more months. Incidentally, so is Lagarde, for whom in an odd change of seasons, economic spring is about to be followed by a depressionary winter. The problem is both will end up empty handed, as the well may just have run dry.
All you need to read and some more.