tagged w/ Financial Crisis
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In Elizabeth Warren's world, credit card contracts would be so simple a teenager could read and understand them in four minutes. Loans would be as easy to compare as toasters, and online credit scores would be free.
http://www.bloomberg.com/apps/news?pid=20601109&sid=a.DEiDrOr.ms&pos=10In Elizabeth Warren's world, credit card contracts would be so simple a teenager could... more
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Unemployment has hit migrant communities in the United States so hard that a startling new phenomenon has been detected: instead of receiving remittances from relatives in the richest country on earth, some down-and-out Mexican families are scraping together what they can to support their unemployed loved ones in the United States.Unemployment has hit migrant communities in the United States so hard that a startling... more
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Despite being blamed for billions in lost investments, the big three credit rating companies continue to dodge accountability.
http://www.youtube.com/watch?v=KPNcrCtcBVYDespite being blamed for billions in lost investments, the big three credit rating... more
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lagan
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added this
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8 days ago
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Derivatives Just "A Sophisticated Form Of Gambling," U.S. Senators Say; Propose Bill Allowing State Gambling Laws To Apply
Three U.S. Senators described the complex and little-understood world of derivatives trading as "a sophisticated form of gambling," proposing legislation that would enable state gambling regulators and attorneys general to examine the practice.
Senators Maria Cantwell (D-WA), Ron Wyden (D-Ore.) and Bernie Sanders (I-VT) sent out a press release on Tuesday, describing the need for more oversight of the market in derivatives, which are contracts that can act as insurance against a future event, or as just a simple bet.
"The derivatives market has done so much damage to our economy and is nothing more than a very high-stakes casino - except that casinos have to abide by regulations," wrote Cantwell. "Even in Las Vegas at the Blackjack tables, both the House and the player have to have capital behind their bets. But we allow Wall Street to continue to operate in the dark..."
http://www.huffingtonpost.com/2009/11/10/derivatives-just-a-sophis_n_352994.htmlDerivatives Just "A Sophisticated Form Of Gambling," U.S. Senators Say; Propose Bill... more
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The conventional wisdom in Washington and in most of the rest of the world is that the roaring Chinese economy is going to pull the global economy out of recession and back into growth. It’s China’s turn, the theory goes, as American consumers — who propelled the last global boom with their borrowing and spending ways — have begun to tighten their belts and increase savings rates.
The Chinese, with their unbridled capitalistic expansion propelled by a system they still refer to as “socialism with Chinese characteristics,” are still thriving, though, with annual gross domestic product growth of 8.9 percent in the third quarter and a domestic consumer market just starting to flex its enormous muscles.
That’s prompted some cheerleading from U.S. officials, who want to see those Chinese consumers begin to pick up the slack in the global economy — a theme President Barack Obama and his delegation are certain to bring up during next week’s visit to China.
“Purchases of U.S. consumers cannot be as dominant a driver of growth as they have been in the past,” Treasury Secretary Timothy Geithner said during a trip to Beijing this spring. “In China, ... growth that is sustainable will require a very substantial shift from external to domestic demand, from an investment and export-intensive growth to growth led by consumption.”
That’s one vision of the future.
But there’s a growing group of market professionals who see a different picture altogether. These self-styled China bears take the less popular view: that the much-vaunted Chinese economic miracle is nothing but a paper dragon. In fact, they argue that the Chinese have dangerously overheated their economy, building malls, luxury stores and infrastructure for which there is almost no demand, and that the entire system is teetering toward collapse.
A Chinese collapse, of course, would have profound effects on the United States, limiting China’s ability to buy U.S. debt and provoking unknown political changes inside the Chinese regime.
more at link...
http://www.politico.com/news/stories/1109/29330.htmlThe conventional wisdom in Washington and in most of the rest of the world is that the... more
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Goldman's reputation is suddenly as toxic as the credit default swaps and other inexplicably exotic financial instruments it used to buy with glee. That's bad for the one thing it values more than anything else: business. Being the prime target for popular and political outrage could put Goldman first in line for draconian new regulation. So it has, reluctantly, decided that the time has come to speak out, to fight its corner. That's how, on one of those bright autumnal New York mornings when anything seems possible -- even an invitation to break bread with the masters of the universe -- I find myself walking past the security guard who held up Michael Moore and into the building with no name.
http://www.timesonline.co.uk/tol/news/world/us_and_americas/article6907681.eceGoldman's reputation is suddenly as toxic as the credit default swaps and other... more
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Before the financial crisis hit, John Paulson was just your run-of-the-mill hedge fund operator, worth millions of dollars. But when the market crashed, Paulson made billions. How he did it lies at the heart of a new book called The Greatest Trade Ever. The book's author, Gregory R. Zuckerman, offers his insight.
http://www.npr.org/templates/story/story.php?storyId=120183535Before the financial crisis hit, John Paulson was just your run-of-the-mill hedge fund... more
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Commissions are often created to defer tough decisions; to forge a consensus around a hard solution to a genuine problem; and, rarely, actually to delve into underlying facts. The Angelides commission (http://www.nytimes.com/2009/07/16/business/16inquiry.html?_r=1), officially chartered by Congress this summer as the Financial Crisis Inquiry Commission, has the chance to be that third kind of commission, gathering the missing empirical data on fundamental questions that can guide future decision-making.
We already know an awful lot more about what happened last year than we did in 1932, when the legendary Pecora commission(http://en.wikipedia.org/wiki/Pecora_Commission) was created to investigate the Wall Street crash. We know the fundamental violations of sound banking practice and regulatory failures that brought us to the precipice. Yet there are still critical areas that would benefit from the commission's detailed analysis: four structural issues that have not yet received adequate attention and one particular transaction that is still highly ambiguous.Commissions are often created to defer tough decisions; to forge a consensus around a... more
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but now smaller banks are at the center of crisis.
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A senior administration official said on Sunday that after extensive consultations with Treasury Department officials, Representative Barney Frank, the chairman of the House Financial Services Committee, would introduce legislation as early as this week. The measure would make it easier for the government to seize control of troubled financial institutions, throw out management, wipe out the shareholders and change the terms of existing loans held by the institution.A senior administration official said on Sunday that after extensive consultations... more
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Via National People's Action, here is some footage from the protesters at the ABA conference. From the footage, it's clear there are some strong emotions from the protesters.
At one point a protester grabs a megaphone and says:
"The American Bankers Association has helped loosen the rules that protect us, allowing the unfettered greed that has brought us to the brink of a recession. And for those bankers who are members and support the ABA's war against the working and middle class, shame on you!"
The crowd soon begins chanting "Shame On You!" in unison.
Via Progress Illinois' Twitter feed, here's more video of Sen. Durbin's speech. In this section, he calls for a "showdown" with Wall Street.
According to the Twitter feeds of National People's Action and the SEIU, the protesters are headed to the ABA's "Roaring '20s"-themed cocktail party. (Perhaps the ABA is not aware of the irony of having such an event.)
Sen. Dick Durbin spoke in front of the protesters earlier today. Here's a clip from the video, in which Durbin tells the story of homeowner who was struggling to stay in her home -- and was apparently talked into agreeing to a seemingly atrocious mortgage. The woman's mortgage was riddled with hidden fees and by, "the types of things even a Wall Street lawyer couldn't explain to anyone," Durbin said.
The American Bankers Association's annual convention in Chicago has become the scene for a series of major protests, which are set to continue through Tuesday. Dubbed "the Showdown in Chicago." (http://www.showdowninchicago.org/index.html) (Check back here frequently for updates on the protests.)
Groups like the National People's Action, the Service Employees International Union, Americans For Financial Reform and the AFL-CIO are expected to turn out with thousands of protesters. Sen. Richard Durbin (D - Illinois) is scheduled to address the protesters Sunday evening. Conference speakers include Newt Gingrich, conservative columnist George Will and FDIC chairman Sheila Bair.
Check out these photographs of the "Showdown in Chicago," taken by organizers of the protest.
http://www.huffingtonpost.com/2009/10/25/showdown-in-chicago-prote_n_333245.htmlVia National People's Action, here is some footage from the protesters at the ABA... more
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The financial bailout raised a lot of questions that I never felt were answered:
1) If capitalism's greatest strength is that it weeds out the weak as the bankers claim, then why would we prop up failed businesses like Goldman Sachs?
2) Since the government bought the banks, what measures have been taken to ensure that another meltdown never happens?
And perhaps most importantly:
3) Why do the bulk of people accept a system that, more clearly than ever, rewards a small cabal of incompetent, untrustworthy men? How many more bonuses do these men need before people burn the fucking thing down?The financial bailout raised a lot of questions that I never felt were answered:
1)... more
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Evidently, the financial crisis didn't make much of a dent in the financial perks awarded to the CEOs of the country's top financial services companies, including firms ponying up for things like country club dues and CEOs' income tax bills: http://bit.ly/1RlBk5
Here's a little song about dat, featuring a cool little pear-shaped tenor guitar.
And hey, it's our first music video in widescreen! Nifty.
More news-musical goodness at http://InTheLoopShow.netEvidently, the financial crisis didn't make much of a dent in the financial perks... more
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Perform a random act of kindness. Help save your friends from Nouriel Roubini's awful track-record. The guy is still testifying to Congress and advising top people in Obama's Cabinet. Shameful ...Perform a random act of kindness. Help save your friends from Nouriel Roubini's awful... more
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Just when you think those that run our country have experience to do a good job, to provide for the common defense and promote the general welfare, along comes the status quo-which happens to be greed and money and power.
Nobody can overturn the money changers tables alone. Well Jesus did.
If we don't pay attention to the warnings and the warners....
October 20th, 2009 on Frontline is a chance to learn about how we got in this financial crisis. Just maybe then we can do something to avert it from happening again, if we can get experienced, conscious and conscience Americans to provide for the common defense and promote the general welfare of our country.Just when you think those that run our country have experience to do a good job, to... more
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If a bank is too big to fail, then it is too big.
We need separation of state and capitalism!
The Fed and the Treasury are lending our money so banks can make big bucks and the rest of us linger in uncertainty.
The Federal Government is to "provide for the common defense and promote the general welfare".
Our elected representatives need to check their conscious and check their job description. Oh, yes, I see, they make more money from bribes than they do at their job.
God help us.If a bank is too big to fail, then it is too big.
We need separation of state and... more
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The nation is facing an energy crisis where rolling blackouts, gas hoarding and high energy prices will become everyday occurrences.
That was the message Tuesday from former Shell Oil Co. President John Hofmeister during a one-hour talk titled “Affordable Energy in the 21st Century: Enablers and Disablers” at Tydings Auditorium.
Hofmeister visited Hobbs through a joint project by New Mexico Tech’s Center for Energy Policy at New Mexico Junior College and the E c o n o m i c D e v e l o p m e n t Corporation of Lea County.
Hofmeister focused on the pitfalls that will lead up to what he calls the “Age of Energy Abyss” and what he believes could prevent it from happening within 10 years.The nation is facing an energy crisis where rolling blackouts, gas hoarding and high... more
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An interesting article on the inherent morality of capitalism.
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She's 97 years old and homeless. Bessie Mae Berger has her two boys, and that's about all.
She and sons Larry Wilkerson, 60, and Charlie Wilkerson, 62, live in a 1973 Chevrolet Suburban they park each night on a busy Venice street.
"They ask why we aren't able to get her off the street. But we can't. I have no income whatsoever," Larry Wilkerson said.She's 97 years old and homeless. Bessie Mae Berger has her two boys, and that's about... more
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