Busted: Bankers and The Global Economy

November 1, 2010

“Economic Shock Therapy” by Corporate Oligarchy

In her new book, Naomi Klein describes the economic process and consequences of multinational politics inflicting capitalist theory on the world. In essence, after moments of crisis, new answers are touted through the regression of human rights in exchange for corporate economic “therapy”. Privatization of “government function,” as in the case of Blackwater and Deloitte, are typical exploits to get around temporary blockades of policy, politically sanctioned as in the case of the Federal Reserve. A radical example of this disaster therapy is the result of Hurricane Katrina, where “the hand of God” is what made the restoration of a better New Orleans possible by removing the people.

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…)

March 10, 2008

Central Banking Works Fine

Filed under: central bank, federal reserve, money — Tags: , , , , , , , , — digitaleconomy @ 12:25 pm

In this brilliantly back-patting and self-aggrandizing speech by Fed Vice-Chairman Kohn, he admits that there is little that needs to be done to maximize the profitability of central banking. That is most certainly true. The central banking power block has the world exactly where it wants: in control and draining the economies of the world for its’ own corporate profit. Am I being unkind? My apologies. I am calling this the way it is.

Federal Reserve link

Monetary policy should be able to adjust quickly to such changes; agreements that must be renegotiated can tie policymakers’ hands.” Don’t tie up your hands with obligations or agreements. Be free. It’s all about performance and bringing in that currency and gold to the vaults of International Banking.

January 12, 2008

Fed Declares U.S. Market Volatile

Filed under: banking, federal reserve, government, money, security — Tags: , , , , , , , , — digitaleconomy @ 3:17 pm

“Since late last summer, the financial markets in the United States and in a number of other industrialized countries have been under considerable strain. The turmoil has affected the prospects for the broader economy, principally through its effects on the availability and terms of credit to households and businesses… These interactions have produced a volatile situation that has made forecasting the course of the economy even more difficult than usual.”
~ Fed Chairman Ben S. Bernanke, January 10, 2008

Financial Markets, the Economic Outlook, and Monetary Policy

December 18, 2007

Fed Requests Action on Mortgage Policies

Filed under: banking, federal reserve, government, money, politics — Tags: , , , , , , — digitaleconomy @ 3:37 pm

Reaction of the Fed regarding predatory mortgage lending practices is very late. This press release does tend to validate the police role of the Fed and bring them above the fray. Meanwhile, the Bush Administration has been asleep at the wheel since the deregulation of the industry in the hope the industry would regulate itself. Now that is laissez-faire economics!

“The Federal Reserve Board on Tuesday proposed and asked for public comment on changes to Regulation Z (Truth in Lending) to protect consumers from unfair or deceptive home mortgage lending and advertising practices. The rule, which would be adopted under the Home Ownership and Equity Protection Act (HOEPA), would restrict certain practices and would also require certain mortgage disclosures to be provided earlier in the transaction.”

“Our goal is to promote responsible mortgage lending, for the benefit of individual consumers and the economy,” said Federal Reserve Chairman Ben S. Bernanke. “We want consumers to make decisions about home mortgage options confidently, with assurance that unscrupulous home mortgage practices will not be tolerated.”
~ FRB Press Release: December 18, 2007


November 5, 2007

Fed Concerned About Financial Markets

Filed under: banking, federal reserve, government, money, politics — Tags: , , , , , , — digitaleconomy @ 12:56 pm

“After operating for years under very favorable conditions and ample liquidity, financial markets came under stress last summer and have not yet fully recovered. This ongoing episode has reminded investors and policymakers alike that financial instability, if allowed to develop fully, could have severely negative consequences not only for the functioning of financial markets but also, importantly, for the macroeconomic prospects of our country as well as others. It is this connection with the real side of the economy that makes financial stability a central concern for me and my colleagues at the Federal Reserve and at other central banks around the world.”
~ Fed Governor Frederic S. Mishkin, November 5, 2007

Financial Instability and Monetary Policy

October 15, 2007

Fed says Housing Correction Underway

Filed under: banking, federal reserve, government, money — Tags: , , , , , , — digitaleconomy @ 2:45 pm

“The past several months have been an eventful period for the U.S. economy. In financial markets, sharpened concerns about credit quality induced a retrenchment by investors, leading in some cases to significant deterioration in market functioning. For some households and firms, credit became harder to obtain and, for those who could obtain it, more costly. Tightening credit conditions in turn threatened to intensify the ongoing correction in the housing market and to restrain economic growth.”
~ Fed Chairman Ben S. Bernanke, October 15, 2007

The Recent Financial Turmoil and its Economic and Policy Consequences

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