Politicians who refuse to increase the Debt Ceiling of the United States of America in attempt to gain perceived leverage in a political discussion citing differences on views for the size shape and funding of our government are playing with fire.
Most who speak on refusing to raise the debt ceiling without spending cuts have little understanding about our existing debt and the congressional irresponsibility to properly associate that debt with a realistic actuarial projection of our debt ceiling requirements.
The debt ceiling is the sum total of the debt our government has accumulated over the course of our 200 plus year history. Every year our congress passed legislation which includes budget bills and other unfunded expenditures, our government issued and sold bonds/bills to fund the government expenditures.
So as our government debt securities come due, some securities are offered for a period of less than a year (treasury bills) and others are securities extended for periods up to thirty years. For example, a bond sold in 1983 with a 30 year maturity, come due comes due in 2013. Since the government is not running a surplus that means our government must be able to roll over this old debt security that's coming due. This can only be done by selling new debt.
If a politician really wants to start to pay down our countries debt, they must establish a budget with more revenue than spending. Any combination of raising revenue and managing spending which creates an annual surplus, ending deficit spending, is the path forward.
The debt ceiling is not a budget. And we
depend on being able to find buyers for these new bonds so we can pay
off the old bonds. Were we not able to do so, then the Fed would have to
monetize the debt and the ensuing inflation would reduce America to a third world country with inflation like Zimbabwe.
If these knuckleheads really wanted to control our countries debt they would not have established temporary tax cuts which created budget deficits which added hundreds of millions of dollars to our debt year after year after year.
The time has come for citizens of the United States of America to increase their financial prowess.
Never allow a politician to demand spending cuts from basic important government programs that help citizens aspire to the American Dream due to the fact that these same politicians denied government adequate revenue from the entire preceding decade.
And our constitutions 14th Amendment forbids default.
Is it treasonous not to support our constitution after taking an oath to do so?
Showing posts with label Financial Fraud. Show all posts
Showing posts with label Financial Fraud. Show all posts
Friday, January 4, 2013
Monday, August 13, 2012
Republican vs. American Values - The Record
Let's review what Republican Party Policies gave to us from 2000 - 2008:
In short the activities which caused our problem today were imprudent tax cuts made by those who always talk about our job creators (Republicans, where are the jobs?). And when our government officials ought to have been planning to secure the benefits citizens paid for their entire working life rather they were offering corporate socialism to the job creators (no jobs) and fighting unpaid for wars. The campaign slogan of the Romney/Ryan ticket is "Bring America Back".
For 10 years Republican Policies were catering to the wealthiest of our nation taking the middle class in America to its knees; sending millions of ordinary citizens into bankruptcy, family's onto food stamps and into the welfare and medicaid social safety net systems. When President Barack Obama took over in 2009, the worst had not yet peaked. His policy shifts were good, have had the effect of ending the carnage.
3 years is insufficient time to dig America out of the "largest Republican hole" every created in the modern era, Especially when the Republican controlled House of Representatives never negotiated in good faith. When the Republican Senate minority used the cloture or filibuster rules in every way possible to be sure AMERICA and therefore Barack Obama "never received a win". The Republican party's number one priority was to see that Barack Obama was a one term President.
The policies presented today by the Republican Party are a heavier dose of what were were provided during the years 200-2008. The Republicans want you to believe the correct course for America is to offering more tax cuts and deregulation (and to have average people sacrifice the benefits citizens have already paid for their entire life knowing the security they will need in their retirement years.
MEDICARE/MEDICAID:
Taxes Paid Years in Advance for Services Rendered at Retirement.
Tell the entire Republican party that their words which twist the truth are unacceptable. Tell then that you know when the GOP uses euphemisms to distort the truth. Tell them that the standard marketing done with Frank Lutz which tells the GOP which words to use to mislead average American citizens won't work this time around. The tax cuts for job creators did not create jobs, the deregulation lead to shenanigans and skulduggery all which hurt millions of people and created enormous debt.
Tell the Republican party they will never get away with their budget proposals on Medicare, Social Security and their attempts to erase the American standards set for America's social safety net are a recipe for failure.
Tell your elected official the Republican Parties solution for our countries economic problems are unacceptable to you as a citizen of the United States of America.
- Cut taxes for most citizens ended up starving government of adequate funding.
- Deregulated investment banking to bring unfettered free market principles back to business, created greedy investment banks that defrauded depositors by borrowing large sums of money from the Federal Reserve at extremely low interest rates, gambled on exotic financial instruments earning large fees and high interest rates for management while Federal Government Regulations protect depositors (FDIC Insurance) holding our government hostage to bail out these shysters.
- Created unbalanced Government Budgets which did not account for all actual government outlays (GOP never budgeted for off balance sheet expenditures like Middle East Wars) widening deficits.
- Allow corporations to damage the environment and our financial system then prevent subpoena power to congressional oversight committees entrusted by our constitution to protect the people from such acts.
- Now, today call for further tax cuts and tax cut extensions due to the depressed economy brought upon the nation by the very same policies they call to action today.
- Create larger and larger government deficits with full knowledge that our citizens are aging will be cashing in on the insurance programs they paid for during their entire working life. GOP failed to properly budget for and fund these promises for an entire decade and today want the average citizen to believe we can't afford what the republican's purposefully created with deficit spending.
In short the activities which caused our problem today were imprudent tax cuts made by those who always talk about our job creators (Republicans, where are the jobs?). And when our government officials ought to have been planning to secure the benefits citizens paid for their entire working life rather they were offering corporate socialism to the job creators (no jobs) and fighting unpaid for wars. The campaign slogan of the Romney/Ryan ticket is "Bring America Back".
For 10 years Republican Policies were catering to the wealthiest of our nation taking the middle class in America to its knees; sending millions of ordinary citizens into bankruptcy, family's onto food stamps and into the welfare and medicaid social safety net systems. When President Barack Obama took over in 2009, the worst had not yet peaked. His policy shifts were good, have had the effect of ending the carnage.
3 years is insufficient time to dig America out of the "largest Republican hole" every created in the modern era, Especially when the Republican controlled House of Representatives never negotiated in good faith. When the Republican Senate minority used the cloture or filibuster rules in every way possible to be sure AMERICA and therefore Barack Obama "never received a win". The Republican party's number one priority was to see that Barack Obama was a one term President.
The policies presented today by the Republican Party are a heavier dose of what were were provided during the years 200-2008. The Republicans want you to believe the correct course for America is to offering more tax cuts and deregulation (and to have average people sacrifice the benefits citizens have already paid for their entire life knowing the security they will need in their retirement years.
MEDICARE/MEDICAID:
Taxes Paid Years in Advance for Services Rendered at Retirement.
- 30 year old paid these taxes for at least 10 years
- 35 year old paid these taxes for at least 15 years
- 40 year old paid these taxes for at least 20 years
- 45 year old paid these taxes for at least 25 years
- 50 year old paid these taxes for at least 30 years
- 55 year old paid these taxes for at least 35 years
- 60 year old paid these taxes for at least 40 years
- 65 year old paid these taxes for at least 45 years
Tell the entire Republican party that their words which twist the truth are unacceptable. Tell then that you know when the GOP uses euphemisms to distort the truth. Tell them that the standard marketing done with Frank Lutz which tells the GOP which words to use to mislead average American citizens won't work this time around. The tax cuts for job creators did not create jobs, the deregulation lead to shenanigans and skulduggery all which hurt millions of people and created enormous debt.
Tell the Republican party they will never get away with their budget proposals on Medicare, Social Security and their attempts to erase the American standards set for America's social safety net are a recipe for failure.
Tell your elected official the Republican Parties solution for our countries economic problems are unacceptable to you as a citizen of the United States of America.
Wednesday, June 27, 2012
Congressional Misinformation or Tax Fairness
The song and dance Congress sold you with a reduction of the capital gains tax offers this result; the high income earner kept $25,000.00 while the average income earner kept $125.00 in savings.
These tax savings originally intended to fund social security, medicare, medicaid, streets, bridges, etc......
Or maybe to just pay down that debt.
Let's look at one simple comparison of Capital Gains taxed at regular income rates vs.Capital gains taxed at the special reduced long term capital gain rate of 15%:
A. Adjusted Gross Income High Income Earner:
$1,500,000.00 adjusted gross income
Annual Capital Gains of $125,000
Capital Gains Taxed as Ordinary Income @ 35% = $43,750.00
Capital Gains @15% = $18,750.00
Tax Savings = $25,000.00
B. Adjusted Gross Income Average Income Earner:
$45,000.00 adjusted gross income
Annual Capital Gains of $5,000
Capital Gains Taxed as Ordinary Income @17.5% = $875.00
Capital Gains @15% = $750.00
Tax Savings = $125.00
READ MORE HERE:
http://fconsmod.blogspot.com/2012/01/tax-fairness-gop-storytelling.html
The Republican Party owns this & other temporary tax breaks, with Democratic Party complicity by allowing the congressional budgets rules to pass both chambers being signed by President George W. Bush.
These tax savings originally intended to fund social security, medicare, medicaid, streets, bridges, etc......
Or maybe to just pay down that debt.
Let's look at one simple comparison of Capital Gains taxed at regular income rates vs.Capital gains taxed at the special reduced long term capital gain rate of 15%:
A. Adjusted Gross Income High Income Earner:
$1,500,000.00 adjusted gross income
Annual Capital Gains of $125,000
Capital Gains Taxed as Ordinary Income @ 35% = $43,750.00
Capital Gains @15% = $18,750.00
Tax Savings = $25,000.00
B. Adjusted Gross Income Average Income Earner:
$45,000.00 adjusted gross income
Annual Capital Gains of $5,000
Capital Gains Taxed as Ordinary Income @17.5% = $875.00
Capital Gains @15% = $750.00
Tax Savings = $125.00
READ MORE HERE:
http://fconsmod.blogspot.com/2012/01/tax-fairness-gop-storytelling.html
The Republican Party owns this & other temporary tax breaks, with Democratic Party complicity by allowing the congressional budgets rules to pass both chambers being signed by President George W. Bush.
Wednesday, January 25, 2012
Tax Fairness or #GOP Storytelling
The Republican Party believes that capital gains, investment income and carried interest earnings are either appropriately taxed at a lower level than ordinary income or deserve to have taxes removed all together.
The latest defense of lower tax treatment states this is money previously taxed therefore it warrants this reduced tax rate.
Balderdash!
The money that has been taxed is not the capital gain, the interest income or the carry interest trade, the money that has been previously taxed is the principal used to create this new income, or stated another way, the previously taxed money generates new income that has NEVER before been taxed.
The income in question here is new, never before taxed ordinary income for a person fortunate enough to be in a position to earn capital gains, investment interest or more blatantly unfair, hold a job where their income is derived from managing other peoples money.
Class warfare exists in an unfair tax code which treats those who either through hard work and success or through inheritance are afforded tax subsidies that those less fortunate are not presently able to take advantage of in order to raise their stead in life.
It is the very politicians whom cry foul when the question of tax fairness is raised, those who suggest a discussion on tax fairness is some form of class warfare who have rewarded the wealthy and powerful who assisted them in maintaining their cushy government jobs. The wealthy and powerful have the capacity to spend money lavishly lobbying politicians who are constantly running for election.
#Vote2012
The latest defense of lower tax treatment states this is money previously taxed therefore it warrants this reduced tax rate.
Balderdash!
The money that has been taxed is not the capital gain, the interest income or the carry interest trade, the money that has been previously taxed is the principal used to create this new income, or stated another way, the previously taxed money generates new income that has NEVER before been taxed.
The income in question here is new, never before taxed ordinary income for a person fortunate enough to be in a position to earn capital gains, investment interest or more blatantly unfair, hold a job where their income is derived from managing other peoples money.
Class warfare exists in an unfair tax code which treats those who either through hard work and success or through inheritance are afforded tax subsidies that those less fortunate are not presently able to take advantage of in order to raise their stead in life.
It is the very politicians whom cry foul when the question of tax fairness is raised, those who suggest a discussion on tax fairness is some form of class warfare who have rewarded the wealthy and powerful who assisted them in maintaining their cushy government jobs. The wealthy and powerful have the capacity to spend money lavishly lobbying politicians who are constantly running for election.
#Vote2012
Monday, September 12, 2011
Book Review: "Too Big to Fail: The Inside Story of How Wall Street & Washington Fought to Save the Financial System – & Themselves", By Andrew Ross Sorkin
Publisher Synopsis:
From inside the corner office at Lehman Brothers to secret meetings in South Korea, Russia and the corridors of Washington, Too Big to Fail is the definitive story of the most powerful men and women in finance and politics grappling with success and failure, ego, greed, and, ultimately, the fate of the world's economy.
"We've got to get some foam down on the runway!" a sleepless Timothy Geithner, the president of the Federal Reserve of New York would tell Henry M. Paulson, the Treasury Secretary about the catastrophic crash of the world's financial system would experience.
Through unprecedented access to the players involved, Too Big to Fail recreates all the drama and turmoil, revealing never-disclosed details and elucidating how decisions made on Wall Street over the past decade sowed the seeds of the debacle. This true story is not just a look at banks that were ‘too big to fail’, it is a real-life thriller about a cast of bold-faced names who themselves thought they were ‘too big to fail’.
To Learn More!
.
Sunday, September 11, 2011
Book Review: "Fault Lines: How Hidden Fractures Still Threaten the World Economy," by Raghuram G. Rajan
Publisher Synopsis:
Raghuram Rajan was one of the few economists who warned of the global financial crisis before it hit. Now, as the world struggles to recover, it's tempting to blame what happened on just a few greedy bankers who took irrational risks and left the rest of us to foot the bill. In Fault Lines, Rajan argues that serious flaws in the economy are also to blame, and warns that a potentially more devastating crisis awaits us if they aren't fixed.
Rajan shows how the individual choices that collectively brought about the economic meltdown--made by bankers, government officials, and ordinary homeowners--were rational responses to a flawed global financial order in which the incentives to take on risk are incredibly out of step with the dangers those risks pose. He traces the deepening fault lines in a world overly dependent on the indebted American consumer to power global economic growth and stave off global downturns. He exposes a system where America's growing inequality and thin social safety net create tremendous political pressure to encourage easy credit and keep job creation robust, no matter what the consequences to the economy's long-term health; and where the U.S. financial sector, with its skewed incentives, is the critical but unstable link between an overstimulated America and an underconsuming world.
In Fault Lines, Rajan demonstrates how unequal access to education and health care in the United States puts us all in deeper financial peril, even as the economic choices of countries like Germany, Japan, and China place an undue burden on America to get its policies right. He outlines the hard choices we need to make to ensure a more stable world economy and restore lasting prosperity.
Remember, this book won an award the: "Goldman Sachs Business Book of the Year Award 2010".
Learn More Here!
.
Raghuram Rajan was one of the few economists who warned of the global financial crisis before it hit. Now, as the world struggles to recover, it's tempting to blame what happened on just a few greedy bankers who took irrational risks and left the rest of us to foot the bill. In Fault Lines, Rajan argues that serious flaws in the economy are also to blame, and warns that a potentially more devastating crisis awaits us if they aren't fixed.
Rajan shows how the individual choices that collectively brought about the economic meltdown--made by bankers, government officials, and ordinary homeowners--were rational responses to a flawed global financial order in which the incentives to take on risk are incredibly out of step with the dangers those risks pose. He traces the deepening fault lines in a world overly dependent on the indebted American consumer to power global economic growth and stave off global downturns. He exposes a system where America's growing inequality and thin social safety net create tremendous political pressure to encourage easy credit and keep job creation robust, no matter what the consequences to the economy's long-term health; and where the U.S. financial sector, with its skewed incentives, is the critical but unstable link between an overstimulated America and an underconsuming world.
In Fault Lines, Rajan demonstrates how unequal access to education and health care in the United States puts us all in deeper financial peril, even as the economic choices of countries like Germany, Japan, and China place an undue burden on America to get its policies right. He outlines the hard choices we need to make to ensure a more stable world economy and restore lasting prosperity.
Remember, this book won an award the: "Goldman Sachs Business Book of the Year Award 2010".
Learn More Here!
.
Saturday, April 2, 2011
Hurt by Wall Street's Financial Fraud?
Check out the Value of Your Home Here: Zillow.com
Just type in the street address name, street address number, city and state to see the present value of your home. Look at historical chart to see value over recent years.
Be sure to thank your Democrat and Republican elected officials.
Almost all of this was enabled by a chain of Federal actions which substantially deregulated finance and real estate business practices. The most important of these probably were the Gramm-Leach-Bliley Act of 1999, which repealed the Glass-Steagall Act of 1933, the Commodity Futures Modification Act of 2000, relaxation of SEC rules in 2004, and maintenance of the Federal Funds Rates at an artificially low rate following recovery from the dot-com bust a decade ago.
Couple this with George W Bush and a Republican Congress laser focus on tying the hands on any government oversight of industry and here we are!
How do you like the value of your home today?
Just type in the street address name, street address number, city and state to see the present value of your home. Look at historical chart to see value over recent years.
Be sure to thank your Democrat and Republican elected officials.
Almost all of this was enabled by a chain of Federal actions which substantially deregulated finance and real estate business practices. The most important of these probably were the Gramm-Leach-Bliley Act of 1999, which repealed the Glass-Steagall Act of 1933, the Commodity Futures Modification Act of 2000, relaxation of SEC rules in 2004, and maintenance of the Federal Funds Rates at an artificially low rate following recovery from the dot-com bust a decade ago.
Couple this with George W Bush and a Republican Congress laser focus on tying the hands on any government oversight of industry and here we are!
How do you like the value of your home today?
Thursday, January 27, 2011
Friday, January 7, 2011
Washington Sleeps With Wall Street
The responsible parties to our existing economic situation are the government and its public monetary policy, private financial institutions business practices and the public (often times unsuspecting).
Opposition to any form of real financial regulation by law makers in power at the time, the Federal Reserve and it insistence on lowering Fed Fund Rates to near or below 1% allowed huge amounts of "easy" credit-based money to be injected into the financial system and thus create an unsustainable economic boom. This was the wondrous response to our DOT.COM bubble.
Our real estate troubles first reared their ugly head in the fall of 2006. Subprime mortgages were the original symptom of a credit boom tuned to bust and of a real estate shock. But large default rates on subprime mortgages does account for the severity of the crisis. Rather, low-quality mortgages acted as an accelerant to the fire that spread through the entire financial system. The latter fragile due to factors unique to this crisis (transfer of assets from the balance sheets of banks to the markets; creation of complex and opaque assets; failure of ratings agencies to properly assess the risk of such assets, and the relaxed accounting rules known as fair value accounting.
In order to counter the Stock Market Crash of 2000 and the subsequent economic slowdown, the Federal Reserve eased credit availability and drove interest rates down to lows not seen in many decades. These low interest rates facilitated the growth of debt at all levels of the economy, chief among them private debt to purchase more expensive housing. High levels of debt have long been recognized as a causative factor for recessions.
The recent events caused a snowball effect that Secretary Paulson thought the private homeowner default could cause lenders to default, causing further defaults through a domino effect. The chances of these follow-up defaults in increased at high levels of debt. Attempts to prevent this domino effect lead TARP to bail out Wall Street lenders such as AIG, Fannie May, and Freddie Mac.
Deregulation of the Banking Industry in November 1999. In 1992, the 102nd Congress under the George H. W. Bush administration weakened regulation of Fannie Mae and Freddie Mac with the goal of making available more money for the issuance of home loans. Whereas banks that held $100 could spend $90 buying mortgage loans, Fannie Mae and Freddie Mac could spend $97.50 buying loans. The 106th Congress, in 1999, under Bill Clinton, passed the Gramm-Leach-Bliley Act, which repealed part of the Glass-Steagall Act of 1933. This contributed to the proliferation of complex and opaque financial instruments which are at the heart of the crisis and this lead to a devastating miscalculation by banks and investors of the level of risk inherent in the unregulated Collateralized debt obligation and Credit Default Swap marketplace.
Under this theory, banks and investors systematized the risk by taking advantage of low interest rates to borrow tremendous sums of money that they could only pay back if the housing market continued to increase in value. The pricing model for CDOs clearly did not reflect the level of risk they introduced into the system. The average recovery rate for high quality CDOs has been approximately 32 cents on the dollar, while the recovery rate for mezzanine CDO's has been approximately five cents for every dollar. These massive, practically unthinkable, losses have dramatically impacted the balance sheets of banks across the globe, leaving them with very little capital to continue operations. And guess who bought these instruments from the bankrupt entities that owned them?
I’m tired and have had enough……
When will the "Middle American" call UNCLE?
Opposition to any form of real financial regulation by law makers in power at the time, the Federal Reserve and it insistence on lowering Fed Fund Rates to near or below 1% allowed huge amounts of "easy" credit-based money to be injected into the financial system and thus create an unsustainable economic boom. This was the wondrous response to our DOT.COM bubble.
Our real estate troubles first reared their ugly head in the fall of 2006. Subprime mortgages were the original symptom of a credit boom tuned to bust and of a real estate shock. But large default rates on subprime mortgages does account for the severity of the crisis. Rather, low-quality mortgages acted as an accelerant to the fire that spread through the entire financial system. The latter fragile due to factors unique to this crisis (transfer of assets from the balance sheets of banks to the markets; creation of complex and opaque assets; failure of ratings agencies to properly assess the risk of such assets, and the relaxed accounting rules known as fair value accounting.
In order to counter the Stock Market Crash of 2000 and the subsequent economic slowdown, the Federal Reserve eased credit availability and drove interest rates down to lows not seen in many decades. These low interest rates facilitated the growth of debt at all levels of the economy, chief among them private debt to purchase more expensive housing. High levels of debt have long been recognized as a causative factor for recessions.
The recent events caused a snowball effect that Secretary Paulson thought the private homeowner default could cause lenders to default, causing further defaults through a domino effect. The chances of these follow-up defaults in increased at high levels of debt. Attempts to prevent this domino effect lead TARP to bail out Wall Street lenders such as AIG, Fannie May, and Freddie Mac.
Deregulation of the Banking Industry in November 1999. In 1992, the 102nd Congress under the George H. W. Bush administration weakened regulation of Fannie Mae and Freddie Mac with the goal of making available more money for the issuance of home loans. Whereas banks that held $100 could spend $90 buying mortgage loans, Fannie Mae and Freddie Mac could spend $97.50 buying loans. The 106th Congress, in 1999, under Bill Clinton, passed the Gramm-Leach-Bliley Act, which repealed part of the Glass-Steagall Act of 1933. This contributed to the proliferation of complex and opaque financial instruments which are at the heart of the crisis and this lead to a devastating miscalculation by banks and investors of the level of risk inherent in the unregulated Collateralized debt obligation and Credit Default Swap marketplace.
Under this theory, banks and investors systematized the risk by taking advantage of low interest rates to borrow tremendous sums of money that they could only pay back if the housing market continued to increase in value. The pricing model for CDOs clearly did not reflect the level of risk they introduced into the system. The average recovery rate for high quality CDOs has been approximately 32 cents on the dollar, while the recovery rate for mezzanine CDO's has been approximately five cents for every dollar. These massive, practically unthinkable, losses have dramatically impacted the balance sheets of banks across the globe, leaving them with very little capital to continue operations. And guess who bought these instruments from the bankrupt entities that owned them?
I’m tired and have had enough……
When will the "Middle American" call UNCLE?
Book Review: 'The Monster: How a Gang of Predatory Lenders and Wall Street Bankers Fleeced America - and Spawned a Global Crisis'
Read the book - what is your view?
The Monster: How a Gang of Predatory Lenders and Wall Street Bankers Fleeced America — and Spawned a Global Crisis. By Michael Hudson.
Can you believe some view the real estate bubble we have solely on the homeowner securing the mortgage stating" "Nope, ultimately, it was the dipstick holding the signing pen who couldn’t figure out that the deal on paper wasn’t right for him."
A perverse point of view that completely neglects a corporations moral and ethical responsibility to their customers, their country and the world.
There is no question a contributing cause of this world wide debacle was (and is) an individuals personal responsibility to understand the basic tenants of financial planning. Maybe a failure to have taught or have learned, but the root cause for this crisis has been assigned right where it belongs.
Sure regulators were a contributing cause by not understanding the size and breadth of the snowball careening down the hill. they failed to slow/stop or at the very least send warning signals that danger lies ahead. And the legislators hold the honor of being a contributing cause due to their removal of some of the barriers that existed to prevent the very activities which precipitated these events. And recent politicians hamstrung regulators making enforcement of existing laws impractical if not impossible.
No, it is the failure of corporate America to make sound loans, protecting their shareholders, meeting their moral and ethical obligations to their communities. This failure is followed by the investment houses who financially engineered casino games who went on to mislead investors at large while peddling these instruments; who then and now are laughing aloud at the fact that they made large sums of money on the historical ride up, ride down and on the historical bailouts.
The problem remains since the very entities responsible are still making gobs of money on the Federal Reserve Policies that remain in place providing the ability of all those unethical/immoral corporations to work their way back to solvency.
They receive virtually free money to invest in the world financial markets while having close to no positive affect in the present day American economy.
The Monster: How a Gang of Predatory Lenders and Wall Street Bankers Fleeced America — and Spawned a Global Crisis. By Michael Hudson.
Can you believe some view the real estate bubble we have solely on the homeowner securing the mortgage stating" "Nope, ultimately, it was the dipstick holding the signing pen who couldn’t figure out that the deal on paper wasn’t right for him."
A perverse point of view that completely neglects a corporations moral and ethical responsibility to their customers, their country and the world.
There is no question a contributing cause of this world wide debacle was (and is) an individuals personal responsibility to understand the basic tenants of financial planning. Maybe a failure to have taught or have learned, but the root cause for this crisis has been assigned right where it belongs.
Sure regulators were a contributing cause by not understanding the size and breadth of the snowball careening down the hill. they failed to slow/stop or at the very least send warning signals that danger lies ahead. And the legislators hold the honor of being a contributing cause due to their removal of some of the barriers that existed to prevent the very activities which precipitated these events. And recent politicians hamstrung regulators making enforcement of existing laws impractical if not impossible.
No, it is the failure of corporate America to make sound loans, protecting their shareholders, meeting their moral and ethical obligations to their communities. This failure is followed by the investment houses who financially engineered casino games who went on to mislead investors at large while peddling these instruments; who then and now are laughing aloud at the fact that they made large sums of money on the historical ride up, ride down and on the historical bailouts.
The problem remains since the very entities responsible are still making gobs of money on the Federal Reserve Policies that remain in place providing the ability of all those unethical/immoral corporations to work their way back to solvency.
They receive virtually free money to invest in the world financial markets while having close to no positive affect in the present day American economy.
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About Me
- FConSMod
- Elections matter-openly cynical of government business as usual-Supreme Court Justices 5-4 open warfare on my Individual Liberty-Teach as Knowledge is Power!