Busted: Bankers and The Global Economy

June 10, 2009

Economy: Good Prospects Beyond White Collar Jobs

Voices of reason have long proclaimed that the only key to a decent future is a college education as we trumpet excess, luxury and credit for all. The halls of academia do not suit every temperament, nor can the world operate only through the league of white collar employment and office jobs. Who will take care of the national infrastructure, manufacturing and all those green jobs that the nation has been promised? A sedentary, artery-clogging, boss-centered lifestyle is not a requirement to exist in America. Yet, hundreds of thousands of American youth have been or continue to buy into massive college loans if credit is available. Nearly half of students who start college will drop out before graduating. Our country has been facing major workforce shortages for years, which have been taken up by illegals in many cases. They are the latest attempt by big business and government to create a new subclass of American worker in which to found a new nation.

white-collar-crimeWithout question, the nation has been suffering where jobs are concerned, brought about by nothing less than white collar crime. You can’t really talk about careers since corporates nip millions of so-called careers in the bud every year due to their own self-interest. That reality existed before the recession stripped the nation of what millions of Americans see as their only self-respect: the job.

America has been convinced working a corporate job is the only way to live. The white collar job has been sold as the American stock and trade. The federal government has been very happy with this campaign as corporations and big business are highly complicit with federal law and the collection of taxes. As a result of this nearsighted approach, the American labor force has been selling itself short and has allowed itself to be deluded about the future and personal potential for the future.

We are being told that only by following rules and leadership of big business, the corporate and the academic world, can Americans possibly prosper. Has this proclaimed fact proved to be true? Are you truly being prospered now? Has the nation prospered? Think for yourself. You are your own best friend and are fully capable of supporting yourself if you are willing to think outside the box that the government, big business and corporates have made for you. There is hope. Great personal success can exist outside the cubicle. You are not a slave…at least not per the founding documents of America. ~ E. Manning

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

April 4, 2008

The Fed: A Corporate Socialist?

“I am very troubled by the failure of Bear Stearns, and I do not like the idea of the Fed getting involved in a bailout of that company. But before making a final judgment, I want to hear from our witnesses why they thought it was necessary to stop the invisible hand of the market from delivering discipline. That is socialism — at least that’s what I was taught, and I would imagine everybody at that table was taught the same thing — and it must not happen again.” – Senator Jim Bunning, Republican-Kentucky at the Senate Banking Committee – partial audio of quote

bernanke-congress.jpgMuch of the country, including Senator Bunning, apparently hasn’t figured out is that the United States is being run by a multinational corporation without the underpinnings or claims of freedom and liberty. With new multinational expansion on a global basis, the central banks of the world have a commercial multinational shadow system that has transcended national sovereignty. Countries like the United States think they have control over the global corporate world (more…)

March 25, 2008

Mortgage-Lovin’ Enron MLM Blues

Filed under: banking, investment, money — Tags: , , , , , , , , , , , , — digitaleconomy @ 12:00 am

securities2.jpgFederal regulators and government policies have clearly overcome any chance of market discipline or natural market correction in the mortgage market. A long-overdue correction in the United States mortgage sector began to rear its’ head last summer. If you’ve been listening, you know this well by now. What is happening with mortgage financing could be compared to Bush’s last financial crisis, the dot.com bust. America survived that financial bubble, although that bubble affected business and investors only. Like todays’ crisis, the production of income was secondary to complicated financial constructs which obfuscated the real mortgage business. The securities invented by the mortgage banking industry aren’t in reality a legitimate investment. Remember when Enron invented entire energy-investment markets that ultimately dealt in nothing but hype?

Turning mortgages into securities has been a great deal for early lenders, much like a wonderful multi-level marketing scheme. The directives market went gangbusters. The desire for non-stop heady profits has put the world where it is. The guys that joined the game later on (more…)

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