Busted: Bankers and The Global Economy

July 12, 2008

Regulators Grumble; Hacking Continues

Given a crush of other business, Congress is unlikely to give financial regulators new powers this year. Appearances are that the next president and the next Congress will have the privilege of grappling with new laws and power over the U.S. financial community.

This is despite pleas from Federal Reserve Chairman Ben Bernanke and Treasury Secretary Henry Paulson as they made Congressional requests for more power and authority in the face of fresh worries about the failure of government mortgage giants and investment banks. We have a strange duplicity present in the market. The reaction of economic officials Bernanke and Paulson demonstrates that the U.S. economy is still in a very precarious position despite perceived improvements in Federal Reserve funding. The lack of confidence here as well as abroad seems to be a self-fulfilling prophecy.

Enhanced power and control is being voiced as the way to save taxpayers money in bailing out troubled and failing institutions. “Right now, we’re going through a period of unusual turmoil” and the government’s focus needs to be on stabilizing the situation.

Banks are also receiving a frontal assault from hackers and internet thieves behind the scenes, further eroding customer confidence. Millions of bank customers face a personal money threat. The cash machine infrastructure is now built on the Microsoft Windows operating system. The cash machines can be remotely diagnosed and repaired online. PIN codes are not being properly secured, suggesting that encryption is not working. The real problem seems to be compromises in third-party banking security as servers are often picked for information rather than cash machines.

Bankers admit the sheer luck of catching online thieves red-handed, proving that you must watch your money transactions or you face being an ignorant victim on many levels. Technology and more regulation has not proved to truly effective. You also know that “Harry” Paulson loves Diet Coke.


1 Comment

  1. Think it has more to do with all them ther turnips and nincompoops in D. C. readin’ what Thomas D. Schauf wrote about back in 1992 and all tat truth of America on Michael Hodge’s Grandfather Economies Report series web page…cause with the hits tat site has got from all the hackers of the World even beetle’s are laughin’ to the bank while Google is countin’ can only count the clicks!

    Guess you’d be kinda rite. Dats what dis website is bout. ~E.M.

    Comment by madmilker — July 12, 2008 @ 2:01 pm

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.

Create a free website or blog at WordPress.com.