Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
S&P 500 – Is a 5% Correction Enough? - 6th Dec 21
Global Stock Markets It’s Do-Or-Die Time - 6th Dec 21
Hawks Triumph, Doves Lose, Gold Bulls Cry! - 6th Dec 21
How Stock Investors Can Cash in on President Biden’s new Climate Plan - 6th Dec 21
The Lithium Tech That Could Send The EV Boom Into Overdrive - 6th Dec 21
How Stagflation Effects Stocks - 5th Dec 21
Bitcoin FLASH CRASH! Cryptos Blood Bath as Exchanges Run Stops, An Early Christmas Present for Some? - 5th Dec 21
TESCO Pre Omicron Panic Christmas Decorations Festive Shop 2021 - 5th Dec 21
Dow Stock Market Trend Forecast Into Mid 2022 - 4th Dec 21
INVESTING LESSON - Give your Portfolio Some Breathing Space - 4th Dec 21
Don’t Get Yourself Into a Bull Trap With Gold - 4th Dec 21
GOLD HAS LOTS OF POTENTIAL DOWNSIDE - 4th Dec 21
4 Tips To Help You Take Better Care Of Your Personal Finances- 4th Dec 21
What Is A Golden Cross Pattern In Trading? - 4th Dec 21
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - Part 2 - 3rd Dec 21
Stock Market Major Turning Point Taking Place - 3rd Dec 21
The Masters of the Universe and Gold - 3rd Dec 21
This simple Stock Market mindset shift could help you make millions - 3rd Dec 21
Will the Glasgow Summit (COP26) Affect Energy Prices? - 3rd Dec 21
Peloton 35% CRASH a Lesson of What Happens When One Over Pays for a Loss Making Growth Stock - 1st Dec 21
Stock Market Sentiment Speaks: I Fear For Retirees For The Next 20 Years - 1st Dec 21 t
Will the Anointed Finanical Experts Get It Wrong Again? - 1st Dec 21
Main Differences Between the UK and Canadian Gaming Markets - 1st Dec 21
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - 30th Nov 21
Omicron Covid Wave 4 Impact on Financial Markets - 30th Nov 21
Can You Hear It? That’s the Crowd Booing Gold’s Downturn - 30th Nov 21
Economic and Market Impacts of Omicron Strain Covid 4th Wave - 30th Nov 21
Stock Market Historical Trends Suggest A Strengthening Bullish Trend In December - 30th Nov 21
Crypto Market Analysis: What Trading Will Look Like in 2022 for Novice and Veteran Traders? - 30th Nov 21
Best Stocks for Investing to Profit form the Metaverse and Get Rich - 29th Nov 21
Should You Invest In Real Estate In 2021? - 29th Nov 21
Silver Long-term Trend Analysis - 28th Nov 21
Silver Mining Stocks Fundamentals - 28th Nov 21
Crude Oil Didn’t Like Thanksgiving Turkey This Year - 28th Nov 21
Sheffield First Snow Winter 2021 - Snowballs and Snowmen Fun - 28th Nov 21
Stock Market Investing LESSON - Buying Value - 27th Nov 21
Corsair MP600 NVME M.2 SSD 66% Performance Loss After 6 Months of Use - Benchmark Tests - 27th Nov 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Financial Reforms Are Being Watered Down As Bank Bailouts Are Up

Politics / Credit Crisis Bailouts Jan 04, 2010 - 12:07 AM GMT

By: Danny_Schechter

Politics

Best Financial Markets Analysis ArticleNew York, January 4th: It’s a new week, a new year, and some, erroneously believe a new decade. What’s not new is the stranglehold the banks have on our economy quietly stashing more billions for more bonuses while still restricting the flow of credit. Bad loans have been supplanted by no loans.


Writers on the left continue to go after one bankster---the one we love to hate:  Goldman Sachs which has become the poster boy for profiteering and even bad coffee served in their cafeterias. Most ignore the rest of the avaricious industry which is still volatile with big pockets of insolvency and dependence of government bailout funds.

While the media focused on the terror threat over Deroit, the terrifying reality in Detroit is ignored. AP reports, “DETROIT - One measure of how tough times are in the Motor City: Some of the offenders in jail don't want to be released; some who do get out promptly re-offend to head back where there's heat, health care and three meals a day.

"For the first time, I'm seeing guys make a conscious decision they'll be better off in prison than in the community, homeless and hungry," said Joseph Williams of New Creations Community Outreach, which assists ex-offenders.”

With TV pumping out a steady diet of football, foolishness and constantly shifting breaking news, the people broken by the economic crisis are largely ignored.

What Americans don’t know is that the US is forsaking advice and a chance to emulate what works in other countries.

While condemning the system in the old Russia, we are emulating the new by transferring wealth to  our own oligarrchs.

We have already forsaken England’s National Health Service model for a plan to further enrich incompetent private insurers while ignoring London’s new rules to tax banker bonuses and more tightly.

In fact, financial reforms are being watered down as the new Business Week reports on pro-business Democrats who are systematically watering down reforms. Financial journalist Gary Weiss calls our attention to this fear:

“A failure wouldn't surprise frustrated lawmakers disappointed by the turn in Washington. "My greatest fear for the last year has been an economic collapse," says Representative Brad Miller (D-N.C), who sits on Frank's House Financial Services Committee. "My second greatest fear was that the economy would stabilize and the financial industry would have the clout to defeat the fundamental reforms that our nation desperately needs. My greatest fear seems less likely...but my second greatest fear seems more likely every day."

More mater of factly, the New York Times reports, “big questions loom: Will the economy stage a robust recovery or just muddle along? Will the stunning rally in the stock market last? As the debate rages over how to prevent future crises, will Washington impose tough new rules on banks? More important, will banks fundamentally change the way they do business, or simply carry on as before?”

What do you think?  There is, unfortunately, no laws stopping banks from carrying on as before.

With the public distracted by Christmas, terrorists and the fight between Fox and Time Warner over cable revenues, the  government continued its bailouts in late December with billions more pumped in to mortgage giants Freddy and  Fannie (even as their execs walk away with millions)

 GMAC, the former GM owned lending arm, whose subprime loans sank the auto company, is receiving nearly another $4 billion from Uncle Sam to subsidize their exposuee to all the fraudulent loans on their books.

Writes Nobel Laureate Joe Stiglitz, “The bailout exposed deep hypocrisy all around. Those who had preached fiscal restraint when it came to small welfare programs for the poor now clamored for the world's largest welfare program. Those who had argued for free market's virtue of "transparency" ended up creating financial systems so opaque that banks could not make sense of their own balance sheets. And then the government, too, was induced to engage in decreasingly transparent forms of bailout to cover up its largesse to the banks. Those who had argued for "accountability" and "responsibility" now sought debt forgiveness for the financial sector.”

Meanwhile, some economists see the health care reform as really as another way to bail out the financial system. Economist Randall Wray denounces:“Health insurance “reform” that requires everyone to turn over their pay to Wall Street. Can’t afford the premiums? That is OK—Uncle Sam will kick in a few hundred billion to help out the insurers. Of course, do not expect more health care or better health outcomes because that has nothing to do with “reform” … Wall Street’s insurers… see a missed opportunity. They’ll collect the extra premiums and deny the claims. This is just another bailout of the financial system, because the tens of trillions of dollars already committed are not nearly enough.”

This is clearly, as has been suggested, “wealth reform” not health reform.

Overall, economic truths are obscured and statistics fudged to promote apperceptions of recovery. Noted The market ticker on Denninger.net as they reviewed their projections from last year.

He writes: “I dramatically underestimated the willingness and ability of "the criminal class" (that would be those in DC and on Wall Street) to lie, cheat, steal, paper over insolvency and get away with it - at least for a while.

Will this ultimately lead to an actual recovery?  No.  It mathematically can't.  A short-term bounce in various metrics, yes, just like an insolvent person can spend on his credit cards until they get cut off and look like they're improving.”

While we ***** about China’s trade policies, their economy grows even as Beijing admits billions of dollars were stolen by corrupt officials who now face zealous if draconian punishment. The white collar crimes here at home are winked at with businesses allowed to pay fines rather that face prosecution. There has still been no serious investigation or crackdown.

Good economic news is heralded; ongoing economic realties are not. Example:  much was made of falling monthly unemployment claims in December That was the headline. The worries of analysts who believe that winter snow storms and Christmas were the reasons are buried.

Reports the Detroit Free Press, “The December jobless rate will likely be 10%, matching the previous month and down from 10.2%, a 26-year high, in October. Still, most economists expect the unemployment rate to remain above 9% through 2010, as companies are likely to hire at a slow pace as they wait to see if the current recovery continues.”

At the same time youth unemployment stands at over l9 percent while minorities suffer twice that. Unnoted:  many have given up looking for work or have watched their benefits run out.

As for foreclosures, they are expected to rise with a  possible “Double Dip.”

The mortgage modification schemes are not working largely because the government puts property rights or lenders above human rights of borrowers.

We need a moratorium on foreclosures caused by fraudulent mortgages and debt forgiveness.

So this is why the economy and the predatory forces that plunder it must become our priority in 2010.

News Dissector Danny Schechter has made a film and written a book on the “Crime Of Our Time.” (News Dissector.com/plunder.) Comments to dissector@mediachannel.org

© 2010 Copyright Danny Schechter - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


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


Post Comment

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