Busted: Bankers and The Global Economy

March 9, 2009

Big Brother Movement Gains Ground

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Government and Corporate Interests Continue to Erode Citizen Independence

For decades the United States government through Big Business has been involved in monitoring and controlling monetary and labor resources to the detriment of the average citizen and the entrepreneur.

Article on Associated Content by E. Manning

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February 11, 2009

Kissing the Ring of the Banking Mafia

kiss-the-mafia-ringEven after years as a corporate economist, I could hardly comprehend the pride and arrogance that exists within the minds of the banking mafia were it not for one simple fact. You might think that beggars couldn’t be choosers unless you consider that the beggars have their own guys on the inside. From central bankers to commercial bankers to Wall Street mafioso, the banking mafia has moved into the political front of influence and power as the salvation of the new U.S. administration. What is the U.S. government doing? Involving themselves in a little ring kissing.

In private industry or in the world of everyday Americans, the borrower, especially a desperate borrower who is already bankrupt, doesn’t have the privilege of dictating the terms of his bailout. The one with the money is the one that sets the rules or at least those were the rules of the old capitalism.

treasury-secretariesThe last two Treasury Secretaries, intimate insiders, proclaim selflessly that banks and financial institutions will not take proffered bailout money if it hurts the personal and financial interest of their executives. That has politicians shaking in their boots instead of exercising their authority by strapping arrogant criminals off to jail. The nation clearly doesn’t operate by the innocent until proven guilty ideal in this current age, so what are we waiting for when it comes to the world of finance? Instead, the criminal and the incompetent are still running the show.

The only solution is not to make banks and their snooty executives thrive and prosper after ruining the national and global economy because they could. Bankers aren’t even cooperating or following the mandates of lawmakers. Even worse, bad business practices should not be encouraged or artificially prospered and that is what the nation is doing in the name of confidence.

The nation doesn’t have a need to kiss the ring of the banking mafia, yet that is what panicked politicians and insiders want to do. How gutless can America be in the face of criminal conduct and complete lack of accountability? Bankers proclaim that they are patriots first and bankers second. How laughable! Unfortunately, what Timothy Geithner indicated on his Tuesday night briefing was that business as usual on Wall Street and in the banking community must continue. Did America vote for more obscene profits, the complete lack of accountability and the justification of the Wall Street bubble? I think not.

This debacle isn’t just about crime or revenge of the American public. National security is at stake. Lives are at stake.  America has been and continues to be thoroughly violated by corporations from banking to the Federal Reserve to Swiss and Italian bankers for corporate and fraternal prosperity. What is worse, the civil rights of every American have been violated in the name of capitalism. As usual, the Feds are ignoring the violation. They just want to run the show. What goes on off stage is simply ignored. ~ E. Manning

November 13, 2008

Bush Continues to Drag Heals on Change

Today at the Manhattan institute in New York City, the home of Wall Street, George Bush defended the nation’s free enterprise system of business as the cure for the global financial crisis rather than the cause. “Government intervention is not a cure-all,” a hint that he is not going to sway to pressure for what he clearly sees as restrictive rules while the majority of world leaders see a new protective financial architecture that will save the world. The change is all about power.

george-bush-2008“Our aim should not be more government, it should be smarter government.” President Bush is clearly trying to straddle the fence on the financial crisis. He sees governments share the blame while advocating tougher accounting rules and updated processes. It would seem that George Bush wants the world to remain the same. At the very least, he is doing a good job pretending.

“In the wake of the financial crisis, voices from the left and right are equating the free enterprise system with greed, exploitation and failure.” George Bush has it right. The world and much of the nation’s smaller businesses see that having allowing the takeover of the nation’s and much of globe’s financial fortunes has led to the failure that he indicated. Few people are damning all business, just the kinds of businesses that ruled the economic engine and insured the future for billions.

“The crisis was not a failure of the free market system. And the answer is not to try to reinvent that system.” The real problem resides in the fear within government. Because of the fear of change and loss of control, the U.S. government has bailed out business that should have met its’ own truth without invention. Now that the Bush administration has intervened, the failure to continue to intervene becomes what might appear to be an eternal conundrum.

Europeans want a pledge for concrete changes in just 100 days. The International Monetary Fund said economies of the U.S., European Union and Japan were subject to contract in 2009 as part of the first annual decline by the advanced economies since World War II. You’d think the world was over. However, this is an opportunity for change and new control measures. It just so happens that many leaders are gung ho about a change.

No one is openly suggesting that the free-enterprise business system change. What is being suggested is that the means of oversight and structure must change regarding banking and finance. Banking and finance is not the whole of the business world. More transparency and workability are needed, yet the U.S. finds itself resistant to that. That means that government must change, which is where the real concern and fear exists. The U.S. government likes the control system just like it is. Even so, the propensity for upcoming change is part of the growing digital economy. There is an effort to force the change. ~ E. Manning

October 21, 2008

Global Financial Overhaul Recommended

A new form of capitalism is needed, based on values which put finance at the service of business and citizens, and not vice versa,” Nicolaus Sarkozy told leaders at an EU economic summit today. “The system must be completely overhauled, an overhaul that must be global.”

Now the Great Depression of America is being used as the classic example of economic failure, even though that crisis was focused in the United States. That is not the case this time. Toxic banking instruments have turned the world on its collective ear. This articulated radical overhaul undoubtedly will involve the relatively new digital economy with all kinds of security and financial protections in the name serving global citizens. In fact, the digital economy has become the de facto global economy, connecting the world as a singular body of people for information, global data sharing and ecommerce. Authorities just haven’t arrived at the global genesis of the New World Order of Finance and Government.

Authorities want global stability as well as financial security. Finance Ministers and Government leaders are looking for a new way to bring that possibility into reality. You should watch the financial accord overseas very closely, especially as the United States is brought increasingly into the picture. Central bankers as the main recipients of the ultimate solution have everything to gain and nothing to lose, creating a new global empire of power and wealth, even if it does take some time. ~ E. Manning

September 18, 2008

Inflation: Economic Global 911 in Process

In the last few months, Busted Bankers has discussed the distinct and strongly lingering likelihood of a larger global downturn or collapse in global financial markets. In the past, you didn’t hear any of that in the States except among a smallist number of bloggers and from a few Scot and British financial specialists. These bankers approximately timed and named the general events that would transpire. Those general events have come home.

bankers

busted: bankers

In the United States, we are chiefly concerned with covering up and dealing with public embarassment on virtually all levels. The inability to admit weakness is a larger flaw than the weakness itself. The confidence crisis here is based in that embarassment along with the truth that investors are spinning in circles looking for a “safe place” to shelter their money. Investors and consumers alike are discovering that there is little safety: that all the gains that have been made over the last decade or more could easily be swallowed whole.

Politician John McCain heralded the idea that “economic fundamentals” are strong. Unfortunately for politicians that long for a rosy picture, the global financial crisis was not created by healthy economic fundamentals, but through misappropriation, greed and fraud in the mortgage and finance industry as well as through creative banking instruments. That cold reality is beyond the realm of economic fundamentals, although even the Federal Reserve system in the U.S. wants to make these corrupted banking standards part of economic fundamentals. This global crisis may make that desire and tendency unpopular, if not impossible. (more…)

August 15, 2008

Bailouts and Moral Hazard

house of moral hazard

house of moral hazard

In the past, the federal government has insisted that home buyers shouldn’t be bailed out because of a dilemma called a moral hazard. The Feds are using the concept of moral hazard to define what a bailout is. Apparently, the issue of moral hazard was never a factor in the Fed’s decision to supply the banks with over $1.2 trillion of taxpayer funds, nor is it being considered by Henry Paulson’s proposal to bailout Fannie and Freddie.

A real bailout creates freedom from responsibility through government assistance or guarantees of protection. A real bailout creates a moral hazard; hence, the tendency to behave irresponsibly and take on excessive risk because the penalty for failure has been removed. That is the banking system guarantee by our beloved federal government that backs up banking avarice.

The Federal Reserve and the U.S. Treasury claim that a bailout is necessary because if banks are allowed to fail, the failure will create a loss of confidence and a global financial crisis. In one fell swoop federal nationalization has effectively deleted the risks of “capitalism” at the expense of the U.S. taxpayer.

~E. Manning

July 28, 2008

Banking & Lending Standards Threaten Economy

Pollster financial consulting firm Deloitte LLP has discovered that two out of three Americans have finally decided that getting a mortgage is more difficult. This fact creates quite a conundrum for financial authorities that want easy answers. Henry Paulson, U.S. Treasury Secretary correctly believes that without mortgages, there is essentially not a housing market. Paulson wants to jump start the ailing economy through the devastated U.S. housing market. That is why Paulson is so adamant about protecting mortgage cousins, Fannie Mae and Freddie Mac at all costs. They currently guarantee roughly 80% of U.S. mortgages and secure the future in the eyes of conventional wisdom.

In fact, without Fannie and Freddie, the U.S. government has little chance at stopping the bleeding in the mortgage and financial markets unless authorities were to reinvent the wheel. Unfortunately for the economy, bankers are no longer free-wheeling loans, making it tougher all the way around for good customers to buy a home. Why? Bankers are playing by the rules or “stricter standards”, which threatens to upend the entire economic recovery plan by the Treasury and Federal Reserve.

Now that the party is over, bankers are typically demanding a (more…)

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