Posts tagged ‘Wall Street’

February 6, 2011

Radical Republicanism

It is impossible not to hear and read political rhetoric every time we turn on a news channel or read a newspaper. We are continually exposed to constant reference to different types of ideologies and philosophies through the use of terms such as Liberal, Progressive, Left, Far Left, Conservative, Right, and Far Right and so on.These terms of fear are used as stigmas so that once associated with an individual or organization we no longer need to read what they are representing or who they represent we just need to fear them. All these terms are communicated to all of us easily in an age of high tech media and is a simple method of classification which than defines the dividing lines of individuals and organizations.

 

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January 27, 2010

To the best of Geithner’s and Paulson’s recollection

Treasury Secretary Geithner and former Secretary Paulson’s testimony today at the AIG House oversight committee hearing has disclosed nothing new. Geithner continues to dodge questions related to his knowledge and his assistants’ knowledge related to AIG counterparty relationships and their associations with Government Officials such as Henry Paulson and his assistants who previously worked for Goldman Sachs. Specific questions related to counterparty settlements of 2.5 billion of U.S. Taxpayer Dollars to Goldman Sachs, and 16.5 Billion Taxpayer Dollars to a Foreign National Bank the top two recipients. The web of financial transaction connected many of the financial institution who received billion of T.A.R.P. tax dollars was the reason for rescuing AIG. Geithner’s rationale behind their decision was to prevent a financial catastrophe or meltdown of the US financial systems. Paulson’s rationale similar to Geithner’s was First AIG was too big to fail. That’s sounds familiar. Second, AIG was seriously unregulated. The wolves were guarding the Hen House. Third, AIG could not go into bankruptcy successfully. This was because its failure would affect other financial institutions. The bottom line was the U.S. Taxpayer had to make Goldman and other institutions both domestic and international whole by paying off AIG liabilities to those institutions that had political leverage through our government officials. Of course Paulson denies any role in the decisions being made to help make Goldman whole. The continued excuse is that the future of our economy was at risk. Not really knowing what the results would have been if AIG failed. The scare tactics used over and over again during the Bush/Chaney years to justify two wars carried over into this debacle used by Paulson, Geithner and Bernake. We wonder why the public doesn’t trust Government.

February 6, 2009

Obama-As the Stew Brews-Financial Potpourri

I have been silent lately for one specific reason. I needed to observe and listen to those making comments concerning our financial crisis at all levels of Government and in Corporate America. What I have observed are many of our elected officials and corporate officials displaying their inability to understand much less provide a logical or realistic plan necessary to solve the problems they themselves have created. They are confused as to which course will eventually help solve the plight of those who are in need of assistance and begin to correct the last eight years of mismanagement in Government and Corporate America.

 

Some of the examples of such confusion are as follows: The Hernando County School Board who previously approved raises across the board recently learned that many administrators would not accept a raise for the new budget year. They are now considering freezing all pay raises to save some teaching positions. Communication with administrators could have prevented this. The Congress passes a Stimulus package with pork built in. Millions of people have lost their jobs and business is as usual in the congress. Republicans are making a grandstand approach to the Stimulus yet not offering any real solutions themselves. It is apparent that to get a Republican to think outside the box after eight years of a semi-induced coma would be asking too much. Democrats are chomping at the bit because of their majority and continue to play politics with pork projects. Wall Street and Corporate American have been told that any firm receiving TARP funds in the future must limit executive Compensation to $500,000.00 a year. What an outrage. How could anyone live on $500,000.00 a year? One comment was if this policy does pass Wall Street and Corporate America will loose these top executives to someone else who will pay them the money. I don’t think so. First, who would want to hire these same people who created this financial catastrophe? Why reward them for creating a currently 7.6 % unemployment rate and possibly the collapse of the capitalistic system as we knew it. They probably feel they had nothing to do with the current collapse. I say let them go to the moon.

 

President Obama is attempting to impress the Congress of both Houses that inaction will continue to add to the deterioration of the basic foundations of our economy which are predominantly in the population’s ability to earn a living and spend, and secondly, in the banking systems which provides a means to transact this business.

 

Over the last 20 years we have built an economy on consumer credit, and the non regulation of Wall Streets creation of inflated corporate balance sheets. Through the use off balance sheet unregulated derivatives contracts and accounting methodologies, falsification of values on trading positions were used to provide big bonuses to most corporate executives. These creative products which have no real value except for the paper they are written on and the ability of both parties to meet their cash flow obligation were used to supposedly adjust the underlying balance sheet assets or liabilities cash flows.  The risk associated with these transactions were never really evaluated and considered as offsets to capital of those holding these positions. If they were analyzed and no one said anything about it, this would constitute a crime and those involved should be prosecuted.  The bottom line is that we finally have a leader who is trying to bring together both parties in congress, by attempting to put aside politics but there is one remaining factor that still eats away at progress, that is the special interest influence. Until those members of the congress shed themselves of these influences our progress to recovery will be at a snails pace.

January 16, 2009

Wall Street-Where did the Money go?

Isn’t anyone questioning why these markets are trading the way they are? Wall Street always states that the public are the ones who make the markets move. They make you believe that normal every day people like “Joe the Plummer” trade their large stock portfolios or mutual fund positions on a daily basis. It reminds me of our elected representatives, they make you believe that because we elected them to office that you are in control when in fact they do whatever they want for whom they want regardless of what we desire.

 

On Thursday January 15, 2009 the Dow Jones was down as much as 200 points when the Senate and Congress were determining two important legislative decisions. One was to pass an 850 billion dollar stimulus package which they did which really was not the major factor in market activity. It was the Senates second hand out to Wall Street of 350 billion dollars which was the market mover. It is so obvious that so many people knew about the losses reported on the 16th of January 2009 by Citigroup (8.3 billion losses) and Bank of America/Merrill (118 billion losses) with a 20 billion dollar infusion as well. Supposedly this information was released on the 16th of January yet actions by our Senate were taken to calm the markets the day before and European markets traded higher prior to the information being released. Can some one tell me what’s wrong with this picture?

I seem to recall a SEC rule about insider trading. It is also called front running in trading.

The markets to day are being manipulated which got us in this mess in the first place. Markets are trading up not on good profit reports but on cash transfers to loosing corporations.  I have asked this question over and over. In every transaction there is a winner and a looser. Where is all this money going? We are supplying our Investment Banks, and our Banks and Insurance Companies with billions of dollars they supposedly lost. Where did the money go? I believe some one especially our Government should let us know since the taxpayers are paying the bills. I have my own conclusions to this question. But, I need a confirmation.

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