Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
JOHNSON AND JOHNSON - JNJ for Life Extension Pharma Stocks Investing - 17th Aug 19
Negative Bond Market Yields Tell A Story Of Shifting Economic Stock Market Leadership - 17th Aug 19
Is Stock Market About to Crash? Three Charts That Suggest It’s Possible - 17th Aug 19
It’s Time For Colombia To Dump The Peso - 17th Aug 19
Gold & Silver Stand Strong amid Stock Volatility & Falling Rates - 16th Aug 19
Gold Mining Stocks Q2’19 Fundamentals - 16th Aug 19
Silver, Transports, and Dow Jones Index At Targets – What Direct Next? - 16th Aug 19
When the US Bond Market Bubble Blows Up! - 16th Aug 19
Dark days are closing in on Apple - 16th Aug 19
Precious Metals Gone Wild! Reaching Initial Targets – Now What’s Next - 16th Aug 19
US Government Is Beholden To The Fed; And Vice-Versa - 15th Aug 19
GBP vs USD Forex Pair Swings Into Focus Amid Brexit Chaos - 15th Aug 19
US Negative Interest Rates Go Mainstream - With Some Glaring Omissions - 15th Aug 19
GOLD BULL RUN TREND ANALYSIS - 15th Aug 19
US Stock Market Could Fall 12% to 25% - 15th Aug 19
A Level Exam Results School Live Reaction Shock 2019! - 15th Aug 19
It's Time to Get Serious about Silver - 15th Aug 19
The EagleFX Beginners Guide – Financial Markets - 15th Aug 19
Central Banks Move To Keep The Global Markets Party Rolling – Part III - 14th Aug 19
You Have to Buy Bonds Even When Interest Rates Are Low - 14th Aug 19
Gold Near Term Risk is Increasing - 14th Aug 19
Installment Loans vs Personal Bank Loans - 14th Aug 19
ROCHE - RHHBY Life Extension Pharma Stocks Investing - 14th Aug 19
Gold Bulls Must Love the Hong Kong Protests - 14th Aug 19
Gold, Markets and Invasive Species - 14th Aug 19
Cannabis Stocks With Millennial Appeal - 14th Aug 19
August 19 (Crazy Ivan) Stock Market Event Only A Few Days Away - 13th Aug 19
This is the real move in gold and silver… it’s going to be multiyear - 13th Aug 19
Global Central Banks Kick Can Down The Road Again - 13th Aug 19
US Dollar Finally the Achillles Heel - 13th Aug 19
Financial Success Formula Failure - 13th Aug 19
How to Test Your Car Alternator with a Multimeter - 13th Aug 19
London Under Attack! Victoria Embankment Gardens Statues and Monuments - 13th Aug 19
More Stock Market Weakness Ahead - 12th Aug 19
Global Central Banks Move To Keep The Party Rolling Onward - 12th Aug 19
All Eyes On Copper - 12th Aug 19
History of Yield Curve Inversions and Gold - 12th Aug 19
Precious Metals Soar on Falling Yields, Currency Turmoil - 12th Aug 19
Why GraphQL? The Benefits Explained - 12th Aug 19
Is the Stock Market Making a V-shaped Recovery? - 11th Aug 19
Precious Metals and Stocks VIX Are About To Pull A “Crazy Ivan” - 11th Aug 19
Social Media Civil War - 11th Aug 19
Gold and the Bond Yield Continuum - 11th Aug 19
Traders: Which Markets Should You Trade? - 11th Aug 19
US Corporate Debt Is at Risk of a Flash Crash - 10th Aug 19
EURODOLLAR futures above 2016 highs: FED to cut over 100 bps quickly - 10th Aug 19
Market’s flight-to-safety: Should You Buy Stocks Now? - 10th Aug 19
The Cold, Hard Math Tells Netflix Stock Could Crash 70% - 10th Aug 19
Our Custom Index Charts Suggest Stock Markets Are In For A Wild Ride - 9th Aug 19
Bitcoin Price Triggers Ahead - 9th Aug 19
Walmart Is Coming for Amazon - 9th Aug 19

Market Oracle FREE Newsletter

Top AI Stocks Investing to Profit from the Machine Intelligence Mega-trend

Wall Street Banksters Pleased by the Health Care Debate, Focus Off Banking System Reform

Politics / Credit Crisis Bailouts Aug 12, 2009 - 01:41 AM GMT

By: Global_Research

Politics Best Financial Markets Analysis ArticleDanny Schechter writes: New York, New York: The thermometer is in the red as the heat of August blends into the steam of the health care fight. These two hot subjects seem to be fogging up TV screens during these dog days as the righteous right take up the tactics of the militant left to create the impression that health care reform is a commie plot. For his part, President Obama insists a bill will pass and that “sensible proposals” will prevail.


What is “sensible” these days?

You can count on that gruesome threesome—Bill, Glenn and Sean—to go ballistic whenever it appears that our government is going to do anything beneficial for the people. There’s always a million reasons why it won’t work, or worse, sink the Republic. Rush Limbaugh alternates between arguing that President Obama is a racist, a communist or a Nazi.

George Orwell would be staggered about how prophetic he had been.

These summer soldiers and sunshine patriots and their tea baggers and the dispatch a mob they’ve incited to yell at members of Congress are strangely silent when it comes to questioning profiteering by health care insurers and the banks. It is as if the only enemies are in Washington, not on Wall Street. They are mostly silent about the bank bonuses and pervasive corporate crime.

If health care reform is at risk, financial reform seems like a non-starter. The empire is striking back, and suddenly what were once considered modest reforms are running into roadblocks as they are branded the work of Bolsheviks..

On the issue of bonuses—the one financial matter that seems to piss off the public the most---in 2007, banks gave out bonuses worth a staggering $1.6 BILLION--- there is now a debate about allowing bonus guarantees. These were once tied to performance but even that criteria is being watered down.

The New York Times tell us, “A guaranteed bonus might strike many people as a contradiction in terms. But on Wall Street, banks have become so eager to lure and keep top deal makers and traders that they are reviving the practice of offering ironclad, multimillion-dollar payouts — guaranteed, no matter how an employee performs.”

Not a bad job if you can get one ---- you can a bonus even if you do lousy. This debate led the newspaper of record to observe. “The resurgence of bonus guarantees underscores just how difficult it is to control Wall Street pay, despite the public outcry over how taxpayer money is being spent.”

But is worse than that, much worse. I had to go to Canada to find a more comprehensive press report on how the fraud factories are winning the battle against new regulation.
David Olive writes in the Toronto Star, “You would think after global financiers triggered the current, unprecedented worldwide recession and credit crisis, they might embrace inevitable reforms that their reckless conduct made necessary.

You would be disappointed.”

And that’s an understatement, (or to quote Ellen Brown, “its an understatement to call it an understatement,”) Olive tells us that the banks, having bought up much of the Congress, now feel emboldened enough to tell the reformers to shove it:

“For the financiers, to their dishonor, have not so much as tendered an apology for their craven, mass departure from prudence, or what Barney Frank, the Democrat representative for Massachusetts, labels their "moral deficiency."

“Instead, the financiers and their powerful lobby groups are resisting any new legislated constraints on the behavior by which they nearly brought themselves and the global economy to ruin. Adding insult to injury, banks have jacked up credit card rates to 27 per cent and more on the same Main Street taxpayers who rescued them. “

Everyday brings more news of their arrogance and avarice

The Financial Times reports: “US banks stand to collect a record $38.5 BILLION in fees for customer overdrafts this year, with the bulk of the revenue coming from the most financially stretched consumers amid the deepest recession since the 1930s...The fees are nearly double those reported in 2000...

“The Federal Reserve is working on rules on overdraft fees, and rules on customer charges could be a priority of the Obama administration’s proposed Consumer Protection Agency if approved by Congress.”

No wonder the banks want to kill the proposed agency.

Bear in mind, this crisis did not happen by accident or just by some mistakes. It was not an accident argues the The Bond Tangent Blog (Via Baseline Scenario):

“Financial institutions did not amass trillions of dollars of toxic assets and tangle themselves up in a destructive web of credit derivatives by accident. Financial institutions did not produce and maintain technology allowing them to take advantage of traditional investors by accident. A thief was not able to operate a multi-billion-dollar Ponzi scheme for decades by accident. We are not talking about the occasional rogue trader here who has bribed his compliance officer. Even within the existing regulatory architecture, these activities required a considerable amount of complacency (to be polite) by financial regulators across agencies, over the course of many years, and through many cycles of political appointees from both parties.”

Was it complacency or more like complicity? Nothing is likely to change unless there is pressure from below. And that pressure is not going to come from the right.

So where should it come from?

As for the cost of inaction: Obama spoke to that on July 22: “If we don't pass financial regulatory reform, the banks are going to go back to the same things they were doing before," he said "In some ways it could be worse, because now they know that the federal government may think they're too big to fail. And so if they're unconstrained (by stricter regulations) they could take even more risks."

Write that down. Put in a bottle or a time capsule, text it as a memo to yourself on your I-Phone and twitter your followers. If the banksters are not brought to heel, we will have survived this crisis only until the next one erupts.

Mediachannel’s NewsDissector Danny Schechter is finishing The Crime of Our Time,” a film and book on Wall Street Fraud. (www.newsdissector.com/plunder.) Comments to dissector@mediachannel,org
Danny Schechter is a frequent contributor to Global Research.  Global Research Articles by Danny Schechter

© Copyright Danny Schechter , Global Research, 2009

Disclaimer: The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of the Centre for Research on Globalization. The contents of this article are of sole responsibility of the author(s). The Centre for Research on Globalization will not be responsible or liable for any inaccurate or incorrect statements contained in this article.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

J.P. Parks
13 Aug 09, 13:25
Good Article...sort of.

This is a good article, if you can disregard the first part about healthcare reform. "Sunshine Patriots and their tea-baggers...dispatched mob...are strangely silent when it comes to questioning profiteering by health care insurers and the banks"? Wow.

So, a nationally run, monopolistic healthcare system would only benefit the people of this country, eh? It would be a boondoggle of the first order, waste billions of dollars, and would ultimately benefit those running the system. Congratulations, you're cheerleading for a system that crowds the insurance companies out, and let the gov't and the banks loot the American People...but hey, at least we got rid of those rotten insurance companies.

Oh, and that pesky "dispatched mob" as you call it, seems to me to be a cross section of Americans who are so fed up with Democrats AND Republicans, that they're obliged to do something they're not used to - stand up and let their Representatives know how poorly they are representing them.

Other than that, this was a good article.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules