Saturday, April 9, 2011

Drug Money Makes the World Go 'Round

No wonder Warren Buffett calls Wells Fargo "my kind of bank". Wells owns Wachovia which had a $400 bln business with Mexican drug lords. Sadly, it takes a British paper to connect the dots, though the NY Times gets a little credit for doing some stories on this. Remember, we have fractional reserve banking, so yanking $400 bln out of just one bank = zapping trillions in liquidity. Imagine this on an industry wide scale. This video paints some details. So does this article:

It may very well be that  this talk of the banking crisis being caused by a sudden evaporation of drug money is merely conspiratorial hoo ha. But one thing remains true, is that nearly $400 billion in drug laudering actvity did take place at Wachovia and that only a small fine was paid and NO arrests made.

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