Cut the Partisan Crap … BOTH the Private Sector AND the Government are to Blame for the Financial Crisis

(WashingtonsBlog) – Partisan GOP hacks say the financial crisis was caused by too much regulation, and government interference in the markets.

But Glass-Steagall was repealed, derivatives were left unregulated, and the regulators were watching porn instead of preventing fraud. Giant banks, hedge funds and other fat cat private players knowingly gamed the market and committed fraud in more ways than can be listed in a single post. Continue reading

Video: Government Is Too Big to Succeed – Ron Paul

Last week, the Financial Crisis Inquiry Commission kicked off their first round of hearings on the causes of the economic meltdown on Wall Street. The commission is being compared to the the Pecora Commission launched in 1932 to investigate the causes of the Great Depression. The Pecora commission is beloved by those who believe the solution to every problem is more laws because it was used to justify a number of new laws, including Glass-Steagall. Of course, none of those laws addressed the real causes of the Great Depression. It was the introduction of unsound monetary policy and central economic planning pursued by the Federal Reserve that really threw everything off balance. The Fed was founded in 1913 to stabilize the economy and prevent a recurrence of the short-lived Panic of 1907, but instead it promptly produced the Great Depression which lasted more than 15 years. Continue reading

If Government Won’t Break Up the Giant Banks, Let’s Do It Ourselves

(WashingtonsBlog) – As everyone knows, the economy cannot permanently recover and truly stabilize until the giant banks are broken up. The top independent experts agree that the “too big to fails” are a drain on the economy and put the entire system at risk. Continue reading

Compulsory Private Health Insurance: Just Another Bailout of the Financial Sector?

Dr. Benjamin Rush, a signer of the Declaration of Independence, is quoted as warning two centuries ago:

“Unless we put medical freedom into the Constitution, the time will come when medicine will organize into an underground dictatorship. . . . The Constitution of this republic should make special privilege for medical freedom as well as religious freedom.”

That time seems to have come, but the dictatorship we are facing is not the sort that Dr. Rush was apparently envisioning. It is not a dictatorship by medical doctors, who are as distressed by the proposed legislation as the squeezed middle class is. (For a withering analysis by an outraged M.D. of the nearly 2000 – page House bill, see here.) The new dictatorship is not by doctors but by Wall Street — the FIRE (finance, insurance, and real estate) sector that now claims 40% of corporate profits. Continue reading

Banks Create Money Out of Thin Air, Not Out of Pre-Existing Deposits or Reserves

The battle to reform the American banking system needs to include reimposing the barrier between investment banking and depository banking (Glass-Steagall), pay incentives based on what is best for Americans and not just the top executives, the end of too big to fail, and other changes which are frequently discussed by financial writers. These are vital issues. Continue reading

MSM: Common Sense 2009

(HuffPost) – The American government – which we once called our government – has been taken over by Wall Street, the mega-corporations and the super-rich. They are the ones who decide our fate. It is this group of powerful elites, the people President Franklin D. Roosevelt called “economic royalists,” who choose our elected officials – indeed, our very form of government. Continue reading

Americans: Serfs Ruled by Oligarchs – Paul Craig Roberts

“In a little time [there will be] no middling sort. We shall have a few, and but a very few Lords, and all the rest beggars.” R.L. Bushman
“Rapidly you are dividing into two classes–extreme rich and extreme poor.” “Brutus”

Americans think that they have “freedom and democracy” and that politicians are held accountable by elections. The fact of the matter is that the US is ruled by powerful interest groups who control politicians with campaign contributions. Our real rulers are an oligarchy of financial and military/security interests and AIPAC, which influences US foreign policy for the benefit of Israel. Continue reading

‘Government Sachs’ Strikes Gold… Again

Connect the dots: Goldman Sachs made $3.44 billion in profit this past quarter, while the US deficit topped $1 trillion for the first time in the nation’s history and appeared to be headed toward doubling that figure before the budget year is out. Continue reading

It Is Time to Dissolve All Central Banks

As previously noted, the Federal Reserve has failed on its own terms. Specifically, it has failed to provide the counter-cyclical influence on the economy which is its very justification for existing in the first place. Continue reading

Economy in Jeopardy. Barack Obama: “Financial Crime Boss”

Since taking office, Obama, wittingly or otherwise, has headed the largest criminal enterprise in history – the mass looting of national wealth to enrich his Wall Street benefactors. He assembled a rogue economic team of Clinton/Robert Rubin retreads – to fix the current crisis they engineered. Continue reading

Geithner’s ‘Dirty Little Secret’: The Entire Global Financial System is at Risk

US Treasury Secretary Tim Geithner has unveiled his long-awaited plan to put the US banking system back in order. In doing so, he has refused to tell the ‘dirty little secret’ of the present financial crisis. By refusing to do so, he is trying to save de facto bankrupt US banks that threaten to bring the entire global system down in a new more devastating phase of wealth destruction. Continue reading

CDS ‘Godfather’ Says Blow ‘Em All Up’ – Webster G. Tarpley

Myron Scholes, the creator of the infamous Black-Scholes model for pricing derivatives which won the Nobel Prize and then almost destroyed the world banking system with the Long Term Capital Management bankruptcy of 1998, has now partially understood that his derivative creations are a Frankenstein monster. Continue reading

Corruption-US: How Wall Street Paid For Its Own Funeral

A new report says that Wall Street has only itself to blame for the misguided deregulation that led to the current deepening financial crisis. Continue reading