While it’s the latest new thing to vilify public employees and their pensions, this little known and understood threat is doing just as much damage:
In 2002 a little-known but powerful state agency in California and Wall Street titans Morgan Stanley, Citigroup, and Ambac consummated one of the biggest deals to date involving … an “interest rate swap.” A year later the executive director of the Bay Area’s Metropolitan Transportation Commission, Steve Heminger, proudly described these historic deals to a visiting contingent of Atlanta policymakers as a model to be emulated.
Because of the economic collapse, and the decline of interest rates in 2008 to virtually zero, the MTA has been forced to pay the amazing sum of $658 million in net swap payments so far.
Lowering interest rates to zero isn’t Fed policy, it’s Wall Street policy – Ed.
Posted in News and Views
Tagged banks, business, CALPERS, credit default swaps, Depression, derivatives, economy, ethics, financial crisis, financial institutions, funding, Goldman Sachs, meltdown, morgan stanley, pension funds, people hate banks, Recession, They are all a bunch of bastards
Productive wealth has been trapped in a web of parasitic theft, counterfeiting, liability evasion, non-regulation, and prosecutorial non-accountability. All the fundamental attributes of a functioning exchange economy have been warped to reward creative criminals.
Posted in News and Views
Tagged banks, business, Depression, derivatives, economic crisis, economy, entrepreneurs, financial crisis, financial institutions, funding, Goldman Sachs, Loans, meltdown, Recession
Please forward this to as many people as possible.
Posted in Do Something!, News and Views
Tagged american recovery and reinvestment act of 2009, bailout, Depression, derivatives, economic crisis, economy, financial crisis, financial institutions, funding, meltdown, people hate banks, Recession, They are all a bunch of bastards
I did something I doubt few people have dared. I took the liberty of a 13-hour flight back from Asia earlier this week to read all 2,300-plus pages of the bill. Yes, all of them.
My law professor verdict: There are many things to applaud in this bill and much in there that will substantially enhance the government’s power to regulate the financial industry. On the whole, if you think that the financial industry needs more supervision and financial regulators more tools, you should be relatively happy. If you are an advocate of big world changing ideas like breaking up the banks, you will be less so.
Posted in News and Views
Tagged american recovery and reinvestment act of 2009, Depression, derivatives, economic crisis, economy, financial crisis, financial institutions, foreclosure, meltdown, money, people hate banks, Recession, They are all a bunch of bastards
Somehow the president has managed to turn a base of new and progressive voters he himself energized like no one else could in 2008 into the likely stay-at-home voters of 2010, souring an entire generation of young people to the political process.
Meet the new boss…same as the old boss…
Posted in Op-ED
Tagged american recovery and reinvestment act of 2009, bailout, Depression, derivatives, economic crisis, financial crisis, financial institutions, funding, marketing, meltdown, people hate banks, stimulus package, They are all a bunch of bastards
If you’ve swallowed the blue pill, this article will be too strong:
Tyler Durden at Zero Hedge blew the whistle on Goldman’s high-frequency trading and other frontrunning activities, and has also been called a conspiracy theorist.
PhD economist, former Assistant Secretary of the Treasury, and former Wall Street Journal editor Paul Craig Roberts says that the government and mainstream media are lying to the American public about how bad the economic situation really is.
PhD economist Dean Baker said in February that the true purpose of the bank rescues is “a massive redistribution of wealth to the bank shareholders and their top executives”.
PhD economist Michael Hudson says that the financial “parasites” have killed the American economy, and they are “sucking as much money out” as they can before “jumping ship”.
PhD economist Michel Chossudovsky says that the giant banks which received the most bailout money also finance a portion of the government’s debt, and are exercising their power as creditors to buy public assets for a song and to impose IMF-style austerity measures on the U.S. government.
If you want to understand so you can make a way for you and your loved ones read this.
IT’S ABOUT PAPER NOT BUBBLES: Stopping the Meltdown
I recently received the following mail from Marshall Thurber, who studied and worked with R. Buckminster Fuller and W. Edwards Deming as well founded the Positive Deviant Network, about an article written by Hernando De Soto. Mr. De Soto, a Peruvian economist whose work focuses on the impact of the absence of a formal property ownership system in under-developed countries and how that lack of rights leads to endless poverty. Mr. De Soto has won numerous awards including the Milton Friedman Prize for Advancing Liberty and the Bradley Prize for outstanding achievement by the Bradley Foundation.
In this article, with Marshall’s preface included, Mr. De Soto discusses the real causes and dangers of our current economic situation: