This is a story about being a groupie...

On the steps of the podium stand the winners of the 2007 Poole Animal Windfest. There is a girl and a boy for 3rd and 2nd place. If you look closely, where is the boy who won 1st place?

In 2007 I was involved in building part of the software system that processed over a quadrillion dollars worth of toxic bullshit for JPMorgan, in a single year. Don't get me wrong, it wasn't a bad job and they didn't treat me badly. In fact they kept a private driver waiting down by the seashore; engine running; waiting for the kitesurfing competition to finish. Then I jumped in the Mercedes with smoked glass windows and we sped off to Heathrow for me to catch a flight. I didn't even have time to wash the salt off my skin or sand out of my hair... or collect my prize for winning the competition.

There used to be a time when JPMorgan's main office in Bournemouth had squash courts and a gym onsite. There was a bar. There were enough car parking spaces for everybody, so everybody drove to work. Then, they grew; and they grew; and they grew. Investment banks were - and still are - ludicrously profitable. The IT budget that paid for my little team of 30-odd people was circa $10m per annum. You're never quite sure what the real numbers are though, when you work for an organisation with 130,000 direct employees.

Slowly, prefabricated office buildings sprang up on parts of the car park. The bar, gym and squash courts were turned into office space. That was OK. We still had several tennis courts and a sports centre nearby with badminton courts and 5-a-side football pitches. You could park nearby in an overflow car park. It was still a great place to work, and nobody had a fucking clue what they were doing or what impact it would have on the world, unless they really stopped and thought about it.

I've always been one of those pain-in-the-ass employees who does stop and think about the ramifications of everything that's being done. When it turned out that senior management had decided to support outsourcing a lot of our software development, I was very vocal about my displeasure and concerns. I was a thorn in the side of everybody more senior than me, in the hope of JPMorgan seeing sense: cheaper employees do not equate to cost savings. You get what you pay for.

So, I got landed with a stinker of a project. To train up about 20 brand new offshore employees, in Mumbai, and also to build a piece of software that was not only late, but was a critical component in a global initiative to get all the toxic bullshit warehoused in one place - a depository - so it could be figured out who the fuck owed who what, and how much? Who was holding the toxic debt? Who was bankrupt?

How big is a million dollars?

$1,000,000

It's hard to say, but it's probably a few times bigger than the value of your house, or twenty times bigger than your salary. Now, let's multiply that by a thousand.

$1,000,000,000

Now what you're looking at is a billion dollars. 1% of a billion dollars is $10 million. You'd be pretty happy with $10 million, wouldn't you? That'd set you up for life. Now, let's multiply that by a thousand.

$1,000,000,000,000

This is quite obviously a trillion dollars. 5 trillion dollars is the value of all the world's 'money' - the cash in your pocket, the coins in your purse, your bank balance etc. etc. Now, let's multiply that by a thousand.

$1,000,000,000,000,000

We've reached a quadrillion dollars. 1% of a quadrillion dollars is $10 trillion, which is twice as much as all the 'money' in existence. So, how the fuck does JPMorgan process over a quadrillion dollars in a single year? Two answers for you: 1) Derivatives 2) Financial crisis of 2007/8

A derivative is a financial instrument that derives its 'value' from an underlying security. By security, I mean something tangible: a fucking house or a metal coin that has its value stamped on it. Derivatives are just pieces of paper that say "in the event X, I will pay Y"... for example "if the stock market goes up, the value of this derivative goes up ten times as much". Derivatives contracts have been created that have become more valuable than all the 'money' in the world. As much as a thousand times more valuable. This is just worthless paper, and nobody has the money to pay up: insufficient collateral.

I know, right? Don't stop and think about this stuff too much. Nobody else did. There was too much money to be made.

So I get landed this stinker of a project, drive off from the beach at Sandbanks to Heathrow airport in a luxury car, in order to train 20 or so Indians on how to build a piece of software that's going to be instrumental in the Financial Crisis of 2007/8. I'm an engineer. I solve problems. I stopped thinking about the madness of outsourcing to India when JPMorgan was already plenty profitable. I stopped thinking about the madness of there being quadrillions of dollars worth of derivatives contracts, when there was only $5 trillion of money in existence. I started thinking about software designs and who I had in my new team to build this software system.

At some point, I was seduced. I was seduced by limo travel, private drivers, 7-star hotels, business class flights, everything paid for on expenses, company credit cards. I was seduced by everybody telling me what an important project it was, and what an honour it was to be in charge - the manager - when I was only 27 years old; so young & ambitious. Giddy with this seduction, I started to see the world in different colours. Things were rose tinted. I was sucked in. It was like I was dreaming.

A year later, I'd woken up from a nightmare where I'd played a significant role in helping the Investment Banks to hold the world to ransom. "Pay up, or we'll crash the global economy and plunge the world into a depression that will make the 1930's look like nothing" they said. And the ransom was paid. Every government; every central bank coughed up hundreds of billions, so the bullshit could continue and none of the bullshitters had to lose a cent. In fact, the only people I knew who lost their jobs were the ones who were replaced by Indians I trained.

I started thinking again. Big mistake.

I took to the bottle. I drank every lunchtime and every evening. I was drunk most of the time. How could JPMorgan sack me or even reprimand me? What they'd paid me to do; what they'd asked me to do... they could never make that right. They just let me do whatever I wanted, which was mostly to go to the pub and get drunk. Nobody ever questioned it.

As Bear Stearns was being taken over by JPMorgan - asset stripped under the auspices of being 'rescued' - I'd had enough. Building software for banks made me sick. I was sick at what they did to their own people. I was sick of what the industry was doing to the world. I was sick of producing nothing of value; helping nobody except the lucky few who knew how the con-job worked.

Don't get me wrong, I should have looked the other way; kept taking the fat bonus cheques and big salary; kept those golden handcuffs on - loose enough that they never chafe - but I wanted to get as far away from it as possible. The whole thing left me feeling like I had blood on my hands. Every company that went bankrupt; every person who lost their job; every home repossessed; every suicide due to financial worries... I was one of the co-conspirators who fleeced them out of their money and assets.

Some colleagues stayed, but most of the cynical ones - like me - drifted away. Some died or at least nearly did, as they beat themselves up with alcohol for their sins. JPMorgan paid for a lot of people to go to The Priory to dry out. Those who couldn't face working again were pensioned off early. You only had to work for a year, and then you were covered by a generous insurance policy so you never had to work again. Occupational health were busy, getting rid of an entire generation of engineers who had built the bedrock foundations of the global financial services empire, now shakily propped up using public money. Masses of public money.

Ten years on, I watch in horror as those hastily made repairs to a fundamentally broken system start to crumble.

Record high national debt and record low tax receipts. Our economy is 80% financial services - an industry that's booming if you haven't noticed. You probably haven't noticed unless you work in the Square Mile or Canary Wharf. You've probably seen stagnant wages, a lack of jobs and insecure employment, such as zero-hours contracts. There's always a McJob, if your self esteem is finally fully eroded by the capitalists.

Brexit had a frontman - Nigel Farage - who was a trader from the City. Brexit had billionaire donors, like the stockbroker Peter Hargreaves, who literally said "insecurity is fantastic" - referring to his desire to see workers abused by their employers, in the interest of profits.

I don't wish to segue into commentary on current affairs, but you have to be aware who you're dealing with. Who's putting words in your mouth? Who's planting ideas in your head, through the newspapers and TV channels they own?

You have to wake up out of your nightmare.

Tags: #politics #banking #capitalism