The real, actual "Matrix"

Or at least, the Republican, Right Wing Matrix they want you to stick with:

American financial scandals, then and now

"When Americans saw the scope of the savings an loan scandal in the 1980s, which today just seems like a bad day on the unregulated derivatives market, Ronald Reagan's Attorney General, Edwin Meese III, put nearly a thousand bankers behind bars. In contrast, Eric H. Holder, Jr., can't seem to smell the stench of a fraud that cost millions of people their jobs or homes."

--Drew Weston in The New York Times today, in his article "America's Leftward Tilt?"

We need to push for banking reform, support of regulations and breaking up the "too big to fail."

Link: http://campaignstops.blogs.nytimes.com/2012/11/03/americas-leftward-tilt/?nl=todaysheadlines&emc=edit_th_20121104

Let's put into place the Robin Hood tax

To repeat, the Robin Hood Tax campaign is calling for a tax of less than one-half of 1% on Wall Street transactions that could generate hundreds of billions of dollars each year.

This tax on Wall Street could provide funding to kickstart the economy and get America back on its feet by creating jobs and strengthening public services like health care, education and infrastructure at home while tackling AIDS, global health, poverty and climate challenges around the world.

It's an idea whose time has long-since come.

Please support the Robin Hood Tax. Let your representatives in Washington, DC know you're for it.

JP Morgan loses $3b: You're darn right, Mr. President

Weekly Address: Congress Must Move Forward, Not Back On Wall Street Reform

The new Wal-Mart, Mexico banking brouhaha

In case you didn't see it, there was a big, rather significaant, if not important article in yesterday's New York Times about Wal-Mart's Mexico banking company: Vast Mexico Bribery Case Hushed Up by Wal-Mart After Top-Level Struggle Confronted with evidence of widespread corruption in Mexico, top Wal-Mart executives focused more on damage control than on rooting out wrongdoing, an examination by The New York Times found.

There are far too many details for me to go on about it here. Suffice it to say, it should be huge, if it isn't totally ignored. I'd like to know three things: First, are there any charges that need to be filed here in the US against whomever is involved?

Next, are there any charges that need to be filed in Mexico? Personally, I hope this will be pursued by the press and justice systems of both countries and that if they find any wrongdoing, they are prosecuted to the full extent of the laws in both countries.

Finnally, I'd like to see if any international laws were broken, too, as well as any other nation's laws, in addition to Mexico's, and if they're prosecutable. This is, after all, the company that wants to be cleared as a banking company in this country, too, as they've made clear. I think for most Americans, it will be extremely illuminating that Wal-Mart is a banking company, also, in Mexico, besides a retailer. I hope it's fascinating just where these revelations go, in positive ways. Meaning, if laws were broken, I hope everyone liable is held accountable, not the least being corporate Wal-Mart, anywhere and everywhere they may have broken any laws. Keep in mind, that Wal-mart all but owns Arvest Bank here in the States, too. (See last link, below).

Links: http://www.nytimes.com/2012/04/22/business/at-wal-mart-in-mexico-a-bribe-inquiry-silenced.html?_r=1&nl=todaysheadlines&emc=edit_th_20120422; http://www.thedailybeast.com/articles/2012/04/22/8-revelations-from-walmart-s-mexican-bribery-scandal.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+thedailybeast%2Farticles+%28The+Daily+Beast+-+Latest+Articles%29; http://en.wikipedia.org/wiki/Arvest_Bank

Here's more of that low-regulation Libertarianism for you

A great example of "self-regulation": former Senator Jon Corzine's MF Global, which collapsed. Now? 1.2 billion dollars are missing and unaccounted for. Understandably, people are upset to the point of angry. (see link below). After the BP oil spill and the 2008 financial collapse that still reverberates today, it's difficult to believe people still want "small government" so companies can regulate themselves. No thank you. We've had far too many examples and reminders of how and why that just doesn't work. Links: http://www.reuters.com/article/2011/12/14/us-mfglobal-regulation-idUSTRE7BD1WE20111214; http://www.reuters.com/article/2011/12/13/us-mfglobal-execs-idUSTRE7BB1XV20111213

Quote of the day--on Washington, our representatives and financial reform

From The New York Times Book Review, last Sunday: Politicians in Washington are mesmerized by Wall Street campaign dollars and terrified of being branded 'socialists.' To our peril, I might add. Link to original post: http://www.nytimes.com/2010/06/27/books/review/Barrett-t.html

Quote of the day --on Citigroup (or as Bill Maher says "Shittygroup")

"Citigroup...repeatedly rescued by the government since the Great Depression...shouldn't continue in its current unmanageable form...Any bank that needs that much help doesn't deserve to exist." --Nouriel Roubini and Stephen Milm, from their new book "Crisis Economics: A Crash Course in the Future of Finance", quoted from The New York Times Book Review this past Sunday

To all Republicans and Libertarians out there...

From Yahoo News just now: Canada thinks it can teach the world a thing or two about dodging financial meltdowns. The 20 world leaders at an economic summit in Toronto next weekend will find themselves in a country that has avoided a banking crisis where others have floundered, and whose economy grew at a 6.1 percent annual rate in the first three months of this year. The housing market is hot and three-quarters of the 400,000 jobs lost during the recession have been recovered. World leaders have noticed: President Barack Obama says the U.S. should take note of Canada's banking system, and Britain's Treasury chief is looking to emulate the Ottawa way on cutting deficits. The land of a thousand stereotypes -- from Mounties and ice hockey to language wars and lousy weather -- is feeling entitled to do a bit of crowing as it hosts the G-20 summit of wealthy and developing nations. "We should be proud of the performance of our financial system during the crisis," said Finance Minister Jim Flaherty in an interview with The Associated Press. He recalled visiting China in 2007 and hearing suggestions "that the Canadian banks were perhaps boring and too risk-adverse. And when I was there two weeks ago some of my same counterparts were saying to me, 'You have a very solid, stable banking system in Canada,' and emphasizing that. There wasn't anything about being sufficiently risk-oriented." The banks are stable because, in part, they're more regulated. As the U.S. and Europe loosened regulations on their financial industries over the last 15 years, Canada refused to do so. The banks also aren't as leveraged as their U.S. or European peers. There was no mortgage meltdown or subprime crisis in Canada. Banks don't package mortgages and sell them to the private market, so they need to be sure their borrowers can pay back the loans. To repeat the song again: "When will we ever learn? When will we ever learn?" Have a great week, y'all. Link to original post: http://finance.yahoo.com/news/Canadas-economy-is-suddenly-apf-807130582.html?x=0

Things W's government didn't do that led to the financial collapse

Here is a short list of what the George W. Bush Administration did and did not do, from 2000 to 2008, which led to the banking and economic collapse of the last year. (And this says nothing of what W's same administration didn't do after Hurricane Katrina hit New Orleans or other travesties):

--Failed to rein in what Chairwoman Sheila Bair of the Federal Deposit Insurance Corp. called a "shadow banking system" in which major banks ramped up their risks by making hundreds of billions of dollars in exotic, off-the-books bets.

--Decided to scale back the FBI's resources for tracking white-collar crime after Sept. 11, and assigned scant personnel at the Securities and Exchange Commission to monitor major investment banks after they were given new freedom in 2004 to take on added risks;

--Adopted rules in 2004 that restricted state regulators from policing predatory lending and other mortgage abuses, prompting some major lenders to seek federal charters to avoid tough scrutiny;

--Relyed too much on the credit ratings of Wall Street agencies, which had financial incentives to bestow high ratings on dubious mortgage-backed securities;

--Failed to monitor major banks' compensation arrangements that gave bonuses for completing mortgage securities sales, regardless of the risks of default;

--Ignored a warning to Congress by the FBI's investigation chief in 2004 that widespread subprime-related mortgage fraud would lead to a financial crisis;

--Failed to apparently be aware of and stop the illegal use of "short selling" which gets money "on the side" of a sale to a bank or lending institution. This is money that is used in the transaction but that is not reported and so is "off the books". It's illegal and it's apparently still being done today by the big banks, at minimum.

Ayn Rand, anyone?

Not me, thanks.

This, ladies and gentlemen, is why we need government.

These are all reasons why we need government regulations.

Pay attention to this Financial Crisis Inquiry Commission, folks. Read up on it. It's only just begun and the travesties are all over the map.

Banking trivia questions

1) How many banks has the FDIC had to close, to date, so far this year?

140

2) How much has the closing of these banks cost us, to date?

30 billion dollars

The correct answers to the above questions begs the following question:

Should the US more stringently regulate the banks, the banking system and the bankers, here in the US?

It seems the answer is clear.

And yet, check this out:

"The American Bankers Association issued a "Call to Action" on Wednesday, urging its lobbyists and member banks to make an all-out effort to crush regulatory reform in Senate. As part of that campaign, it lashed out at its community-bank rival, charging it with being too soft on bank reform efforts."

"In an unusually frank memo from ABA Chairman Art Johnson, the lobby group congratulates bankers for sending some 300,000 letters to Congress opposing reform, crediting the effort with killing several significant provisions."

What chutzpah.

Contact your Congressperson---Senators, Representatives, both--and tell them we need this regulation back. We used to have it. We need it to return.


Find answers here:
http://www.huffingtonpost.com/2009/12/19/fdic-shuts-down-seven-mor_n_398071.html
http://www.huffingtonpost.com/2009/12/16/bank-lobbyists-launch-cal_n_394673.html

We've been sold out on reform, health care and otherwise

From a friend--Michael--and "Crooks and Liars", the blog. This is another rare case of wanting to put something up that expresses my feelings, particularly about living in this sick society we call America, where the corporations and their huge profits are far more important than the citizens of the state.

Notes on the Moral and Political Degradation of America

By Ian Welsh Wednesday Dec 16, 2009 2:15pm

The news in the last few days has continued the drumbeat of demoralizing events which started in the Bush administration, and with only a few hiccups has continued through the Obama administration. It is clear that Obama is, fundamentally, Bush's 3rd term.

First we have the health care "reform" debacle, where it has been confirmed that the White House pushed Harry Reid to accept Lieberman's ultimatum, not go to reconciliation. There will be no public option in the Senate bill. There will be no Medicare expansion. There will be no cap on yearly limits. What there will be is a mandate forcing people to buy insurance, some subsidies which can still leave people spending money they can't afford, and guaranteed issue of lousy plans (Plans where only 70% of the premiums have to be spent on care, for example.) Unless progressive Senators are willing to filibuster, or House progressives are willing to vote against en-masse, something very close to the Senate plan is what will pass, because as I noted some time ago, the White House's bottom line is that something, anything must pass, and conservative Dems are willing to kill the bill to make sure it doesn't actually threaten health industry profits in any way, shape, or form. (Thus why drug importation, which would cost Pharma money, will be made illegal.)

All of this was completely predictable. Furthermore the weakness of progressive and liberal legislators, is largely to blame:

Obama and the Democratic leadership's bottom line is they must pass some bill called "health care reform". Unless you threaten to take away their bottom line, they will take away anything that isn't progressives bottom line

This is Negotiation 101, and progressive legislators either don't understand it, or are spineless. As a result they, and Americans, have been rolled yet again. What is depressing about this is that it should be a surprise to no one, but apparently has surprised many.

It is also noteworthy that spending billions on turning brown people into a fine red mist (a.k.a. the Afghan war) is acceptable, but health care (a.k.a. saving actual American lives) is something which can't cost money. What an interesting--and clearly evil--set of priorities that reveals. I guarantee that real healthcare reform would save more American lives than the entire war on terror—assuming said "war" hasn't cost more American lives than it's saved, which is almost certainly the case.

Next we have what Glenn Greenwald is calling the creation of Gitmo North, in which people whom the government judges there is not enough evidence to convict, will be held indefinitely without trial. This is the very definition of tyranny. Any nation which does this is a nation of men, not laws. America has forsaken its fundamental premise and proved its degradation. Yes, this started under Bush, but as Obama embraces this, it because a bipartisan project and the new elite consensus. This is now something which has been confirmed as US policy which is extremely unlikely to change no matter who is in power.

Then we have bankers are giving themselves bonuses larger than the entire economy's GDP growth this year.

As Peter Morici notes:

How much is $140 billion?

The U.S. economy grew at a $89 billion annualized rate in the third quarter. That was the first growth since the second quarter of 2008 and came to $22 billion in actual growth in the third quarter.

The bankers, after causing the greatest economic calamity since the Great Depression, are rewarded with six times the growth accomplished so far in the much heralded “economic recovery.”

Meanwhile, seven million families face foreclosure and 25 million Americans can’t find full time work.

To add this sad state, we have the sad spectacle of Obama lecturing the bankers. Meanwhile in Britain, instead of lecturing, the government has imposed a 50% tax on bonuses, and France looks like to follow suit. The British government's response to threats to move employees out of the country? "That's nice, you do that."

The fact of the matter, as I've long said, is that bankers at the big banks are a net drain on the economy. Their venality and recklessness has wiped out the entire economic gains of the last decade and plunged the economy into its worst crisis since the Great Depression.

Now I'm not surprised they have the gall to pay themselves these bonuses. The entire profits of most large banks in the last expansion were based on open fraud. Of course criminals who have not been punished, but have been rewarded for their crimes are going to continue to steal. What is shocking is that the government is essentially doing nothing. Obama's "Pay Czar" is a sick joke, especially compared to just taxing all bonuses at 50%. Heck, even taxing bonuses at 50% is sad—they should be taxed a good confiscatory 90%. A class of people who caused an economic calamity of this magnitude do not deserve to be paid more than janitors.

Why? Because, as a British study noted, janitors actually create value. So do homemakers. So do assembly-line workers. Modern bankers, on the other hand, destroy value. They make the economy weaker. That isn't the way it should be, but when you bail out the banks for trillions and they decrease their lending to businesses and increase their credit card interest rates to as much as 29% it's clear that all they are is parasites, sucking blood from their hosts.

In a healthy, non-degraded society, none of the behavior listed above would be allowed. Not only would there be confiscatory taxes leveled, there would be massive ongoing criminal investigations into what happened.

In a healthy, non-degraded society, saving American lives by making sure they have health care would be a priority. Especially since the US pays twice as much per person as many countries which get far better results. This would be considered much more important than a war in a far away country, because it would be understood that even if you believe that turning brown people into a fine red mist saves American lives, health care would save more lives. And, done right (a.k.a. single payer) it would even save money. But that was never on the table, and even the limp-wristed compromise of a weak public option was too much for the rich and powerful to tolerate. Americans exist to be looted systematically by their elites, and if they die young and live sick, who cares? They are just sacks of money and the goal of government is to make dipping your hand into that sack as easy as possible for industries which can afford to buy government.

And, last but not least, in a healthy, non-degraded society, the government is not allowed to lock up people indefinitely without trial. If you don't understand why this is, I can't explain it to you, any more than it is apparently possible to explain to a plurality of Americans why torturing people is evil, and beyond the pale. The fact that it can't be explained any more to many Americans, of course, is exactly why it is fair to call this degradation.

Moral and political degradation.

Original link:
http://crooksandliars.com/ian-welsh/notes-moral-and-political-degradation-am

France looks better all the time

France, Germany, French President Nikolas Sarkozy and German Chancellor Angela Merkel all look better and smarter all the time, it seems.

They're the ones pressing the most at the G20 right now for much more regulation and restrictions in business and our ugly, out-of-control Capitalism.

Thank God.

Look where all this selfish, unregulated banking, for instance, has gotten us--all of us, worldwide. Collapsing banks. Failing insurance companies. Collapsing stock markets.

Maybe doing it all "above board" makes far more sense after all. This way the wealthy can, sure, still make money but just not fleece so many others who may or may not have that much money, all so they can be more obscenely wealthy.

They're also saying that maybe it doesn't make so much sense to throw so many more trillions of dollars at these busineses, too.

Imagine that--Socialist countries saying that maybe it doesn't make sense to soak up tax money to big institutions.

It seems backward, doesn't it?

Usually it's the free market capitalists who are saying don't throw government money at problems.

Pass those French Fries, will you?

Link to story here:
http://news.yahoo.com/s/ap/20090402/ap_on_re_eu/g20_summit

President Obama's weekly radio address 02.21.09

Sorry I haven't posted for a few days, folks. I was out of town on a short vacation for a few days. I'll be writing later today.