Tag: banking crisis

Nov 27

The Euro Crisis by the numbers

  Slowly, painfully, the world is coming to grips with the realization that the Euro, as we know it, is entering its last days, and what consequences we are likely to see.

 As the Italian government struggled to borrow and Spain considered seeking an international bail-out, British ministers privately warned that the break-up of the euro, once almost unthinkable, is now increasingly plausible.

  A senior minister has now revealed the extent of the Government’s concern, saying that Britain is now planning on the basis that a euro collapse is now just a matter of time.

  Recent Foreign and Commonwealth Office instructions to embassies and consulates request contingency planning for extreme scenarios including rioting and social unrest.

  Many people, especially those that trade stocks, have been having trouble believing that the Euro will die. After all, just a few years ago the Euro was considered the alternative reserve currency of the world. So much work and money has been spent on this unproven endeavor, not to mention the complete lack of a “Plan B”, that few could picture its demise.

  Yet, just like the inability of so many to foresee the end of the housing bubble, reality is intruding again. The farther we get down the road of failure, the more clear the picture becomes.

Jul 24

What to do, what to do!

Amidst the problems of attempts by the Fiduciary (the government) to “STEAL” our Social Security, Medicare and Medicaid Trust Funds and our efforts to thwart theirs, there are so many behind the scene efforts, the same for which is owed $2.6 trillion by our Treasury.

I have been and am in a banking situation, which was a “carryover” from many years ago, from which I am gradually trying to extricate myself for reasons we should all know and, frankly, do! I had been wanting to do some changes for quite some time, but I needed to do some “shopping” around, not to say that there is a vast difference here or there, but, just, maybe, a little more concern.

In the meantime, this month has brought notifications (“warnings” concerning any brokerage accounts) that the “Bank” has chosen another clearing house, one which is within its own “family.”  And unless or until you remove such accounts (as you may wish), from their entity before July 29, 2011, thereafter, on August 5, 2011, you will be charged $75.00, for removal of any and each such account to any entity outside their brokerage.  What?  Do you get it?  In other words, the Bank will charge its customers, after August 5, 2011, for, first of all, a decision it made to transfer your “assets” over to their “decision” should you not withdraw your funds on or before July 29, 2011.

Now, that’s not enough?  No, today, I receive notification that I must accept/reject a new Banking Resolution by Sept. 15, 2011.  

Quote that information here!

First, now, I have to look up that banking resolution, but not only that, I now need to find out what are the current charges vis a vis the Bank’s ultimatim.

Strikes me a form of enforcement!

By now, I think the message is quite clear!  The least fortunate of us, despite our hard work, earnest beliefs, love of our fellow human beings, have become prey to our “elitist” predators, who would sooner be rid of us, unless they can use us, i.e., take note of our corporations in the Asian countries, China, for example, child labor, no OSHA laws, no benefits, $0.50 an hour?  All of this while, first of all, being an American corporation(s), and paying NO taxes to the country in which they were incorporated — and it goes on and on!

This needs much work!

 

Oct 06

People Power: European Activism & Constitutional Crises

All across Europe recently there have been wave after wave of co-ordinated general strikes and massive demonstrations showing a solidarity and a unity across unions representing different kinds of workers in different countries, different levels of skill, against austerity proposals by governments, that put to shame the levels of public street activism in the US and Canada.

Fresh off a summer lecturing in Greece and France, economist, author, and Professor Emeritus of Economics at the University of Massachusetts, Amherst, Richard D. Wolff, well-known for his work on Marxian economics, economic methodology and class analysis, Yale University Ph.D. in Economics, and Professor at The New School University in New York City, gives his analysis on the massive European mobilizations and strikes. He also compares the US movement to the European one, and find the European workers to be much more advanced in their struggle.

This extraordinary unity is all built around a central demand which can be conveyed by their chief slogan: we are the working people who produce the profits, the goods, and the service of the capitalist economy; we are not going to pay for its crisis. And that’s really the central demand, that if the banks and the corporations and the speculations produced a crisis that working people had no role in-and I want to remind viewers that in Europe they didn’t even have the mortgage kind of crisis in European countries that we had here; it was a crisis of the banking sector, the financial, large corporations, and so on-the demand of the people is, we are not going to be made to pay. You’re not going to solve this economic crisis by having the government borrow money, throw the money at the banks and the big corporations, bail them out, and then make the mass of people pay by cutting government payrolls, by cutting government services, all those things called austerity.



Real News Network – October 05, 2010

European Workers Distance from US Through Action

Richard Wolff: European workers say they won’t pay for crisis while US counterparts talk of ‘One Nation

(transcript below)

Sep 19

Life of Illusion, Revisited

An experienced economist and a novice economist are walking down the road. They come across some dog sh*t lying on the pavement.

The experienced economist says, “If you eat that dog sh*t, I’ll give you $20,000!”

The novice economist runs his optimization program and figures out he’s better off eating it, so he does and collects the money.

Continuing along the same road they almost step into another pile of dog sh*t.

The novice economist says, “Now, if you eat this sh*t I’ll give you $20,000.”

After evaluating the proposal, the experienced economist eats the sh*t and collects the money.

They go on. The novice economist wonders, “Listen, we both have the same amount of money we had before, but we both ate sh*t. I don’t see us being better off.”

The experienced economist retorts, “Not so! We’ve created $40,000 of trade!”

Jul 03

Into the Land of Bones

One change makes you larger,

And one change makes you small,

And the ones Obama gives you, don’t do anything at all.

Go ask Geithner, when he’s ten feet tall.

Bring a shovel with you, he’s WAY down in that 10 trillion dollar rabbit hole no Obamabots want to talk about, he’s down there with the Mad Hatters of Wall Street and the Cheshire Cats of the Fed, he’s down there high-fiving his Goldman Sachs pals, they’re on a roll, they’ve been raking in market bubble billions and cashing in when those bubbles have exploded ever since the 1920’s.                

Mad Hatters, Cheshire Cats, whacko wingnuts and Goldman Sachs.

Are we having fun yet?

Jun 08

To the Barricades of Heaven

Running down around the towns along the shore,

When I was sixteen and on my own.

No, I couldn’t tell you what the hell those brakes were for,

I was just trying to hear my song . . .

Now I’m sitting by the highway,

Down by that highway side.

Everybody’s going somewhere,

Just as fast as they can ride.

I guess they’ve got a lot to do,

Before they can rest assured.

Their lives are justified.

I’ve been up and down that highway,

But no matter what I see,

I can’t help feeling,

We’ll never get where we want to be.

A friend said, close your eyes, and try a few of these,

I thought I was flying like a bird,

So far above my sorrow,

But when I looked down,

I was on my knees.

RePugs said close your eyes, America . . .

reaganomics Pictures, Images and Photos

And try a few of these tax cuts for the rich, the wealth will trickle down.  And America believed them.  

May 22

Secrets of the Temple

Digby observes that the American economy is essentially in the hands of the High Priests of the Federal Reserve, who do not answer to anyone, least of all to the great unwashed masses who allegedly aren’t equipped to handle something so important as money.

Considering the fact that America’s banking system has become the Clusterfuck of All Time, it seems to me that the High Priests of the Temple of Bernanke are the ones who can’t handle money.  Or keep track of it.  Or reveal how many trillions of dollars they’ve printed and who they’re handing all those trillions of dollars to.

Congressman Grayson:

The Federal Reserve has refused multiple inquiries from both the House and the Senate to disclose who is receiving trillions of dollars from the central banking system.  The Federal Reserve has redacted the central terms of the no-bid contracts it has issued to Wall Street firms like Blackrock and PIMCO, without disclosure required of the Treasury, and is participating in new and exotic programs like the trillion-dollar TALF to leverage the Treasury’s balance sheet.  With discussions of allocating even more power to the Federal Reserve as the ‘systemic risk regulator’ of the credit markets, more oversight over the central bank’s operations is clearly necessary.

Even more oversight than there already is???

Wow.  I didn’t know it was possible to have even more oversight over that Temple of Secrets and its Branch Temples on Wall Street than we already have.  But I know this much. . .

The High Priests will be very offended.  They’d already ordained themselves as Supreme High Pontiff Systemic Risk Regulators and now some heathen asshole in Congress is suggesting that they should be subject to even more blasphemous oversight.  

Mar 18

Take Back the Economy

It’s still not too late to take our economy back, but we can’t depend on Obama to do it, we’re going to have to take it back ourselves.  Starting on March 19th.

The Village Voice:

Credit derivatives are breaking and will continue to break the world’s financial system and cause an unending crisis of liquidity and gummed-up credit.  Warren Buffett branded derivatives “financial weapons of mass destruction.”  Felix Rohatyn, the investment banker who organized the bailout of New York a generation ago, called them “financial hydrogen bombs.”

Corporate elites have been waging class warfare against us for decades.  They’ve riddled us with Bankruptcy Bill bullets, napalmed us with NAFTA, massacred our labor unions, turned our healthcare system into the Bataan Death March, and now they’re dropping financial hydrogen bombs on us.  

According to The Village Voice, one of their deadliest and most lethal weapons has been the AIG Financial Products office in London, where a large proportion of those radioactive credit derivatives were written.

AIG had placed this unit outside American borders, which meant that it would not have to abide by American insurance reserve requirements. The president of AIGFP, a tyrannical super-salesman named Joseph Cassano, was an executive at Drexel Burnham Lambert, the now-defunct brokerage that became the pivot of the junk-bond scandal that led to the jailing of Michael Milken, David Levine, and Ivan Boesky.

During the peak years of derivatives trading, the 400 or so employees of the London unit reportedly averaged earnings in excess of a million dollars a year. They sold “protection”-this Runyonesque term was favored-worth more than three times the value of parent company AIG.

Those talented people are demanding the bonuses they’ve earned for that bang up job they’ve done hydrogen bombing everything in sight into radioactive rubble.  As Emptywheel warns, if we don’t give them their bonuses, they’ve threatened to trigger a default event that will cost the US government hundreds of billions of dollars.  

Feb 15

Iceberg? What Iceberg? Oh . . . That One . . .

In a Bill Moyers interview with Simon Johnson, former chief economist of the IMF and now a Professor of Global Economics and Management at MIT’s Sloan School of Management, Johnson expressed a pessimistic view of those empowered to lead us out of this economic crisis.  

Jane Hamsher at FDL explains:

Johnson isn’t for “nationalization” per se, he’s for “scaled up FDIC intervention,” breaking down the “oligarchy” by pitting one faction against the other.  Based on his analysis of who is holding the financial keys at the moment, he fundamentally believes that the people in charge of determining the outcome of the situation have a vested interest in not standing up to the banking interests and doing the things that need to be done.  And that is not a comforting thought.

No.  It’s not a comforting thought.  There’s no comfort in knowing that Captain Geithner seems intent upon ramming into the same iceberg Captain Paulson rammed into, there’s no comfort in knowing only the elites will get to board the lifeboats, there’s no comfort in being trapped below decks in steerage class while all of this iceberg ramming is going on.