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
INTEL Bargain Teck Stocks Trading at 15.5% Discount Sale - 7th Dec 21
US Bonds Yield Curve is not currently an inflationist’s friend - 7th Dec 21
Omicron COVID Variant-Possible Strong Stock Market INDU & TRAN Rally - 7th Dec 21
The New Tech That Could Take Tesla To $2 Trillion - 7th Dec 21
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
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

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

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. ( 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 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


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