Busted: Bankers and The Global Economy

April 16, 2010

Video: Holding Wall Street Accountable

President Obama is selling the strongest consumer protections ever, bringing transparency to financial dealings. He suggests closing loopholes to stop recklessness and irresponsibility and to hold Wall Street accountable while giving shareholders new power in the financial system. President Obama lays out what Wall Street Reform is about, and questions whether opposition from the Senate Republican Leader might have something to do with his recent meeting with Wall Street executives.

March 29, 2009

Geithner Admits Fed Role in Economic Collapse

geithner charlie roseThe Obama administration wants to add a glimmer of hope to the global fiscal crisis that started with corrupted U.S. corporate policy and banking investment greed. Despite efforts of many to put lipstick on the ongoing economic recession and remove blame from corporate bankers and government, in a recent interview with Charlie Rose, Tim Geithner admitted

“a deepening recession. You’re seeing the recession intensify here and really around the world. You know it started here, but the world is sort of catching up. That’s putting more pressure on business and the financial system as we see it. We start with this deepening recession, intensifying housing crisis, a deep fiscal hole in the financial system that’s in some ways very damaged. Parts of it are working well, parts of it are still very damaged. It’s going to take a lot to work through this. Again, we start with a — just a deep mess. It is our obligation to clean it up and to fix it…”

“I want to be clear. Again, we start with a mess, a deep mess, made worse by the deepening recession. And these things are pitting on themselves. And it’s very important for people to understand, it’s going to take some time to work through this. But what I want people to know is that we’re going to do what’s necessary to get through it. And these things will get traction. They will start to help unfreeze things, and they will help lay the foundation for recovery.”

“They (the Fed) projected that optimism in the future and that created the conditions where people took more risks than they should have, and they, frankly, didn’t pay enough attention to the possibility that when this ended, came apart, that the consequences would be as damaging as they did. Now, I spent almost every day from the first time I walked into the New York Fed about five years ago working with my colleagues on ways to try to make the system stronger so we were going to be better able to withstand the kind of pressures when this came apart, and we did some very important, powerful things, but many of the things didn’t have enough traction, and we share with really all parts of the financial oversight bodies here and around the world a deep responsibility for not having done more and a really deep obligation for trying to fix this quickly and put in place the kind of reforms to prevent this from happening again.”

“Our system was not designed to sustain a shock, a crisis of this magnitude. It’s the tragic failure of financial regulation in this country. It was just not designed to tolerate anything of this magnitude. The critical test of any financial system in some senses is how you deal with stress and shock because you want a system that’s going to be strong and resilient enough to handle almost anything it could face. And this system didn’t meet that test because we had a regulatory framework that was designed, largely, 90 years ago and did not adapt to take account of these huge changes in the structure of our financial system.”

March 11, 2009

U.S. Economy: Prepare for Depression and Inflation

Central Bankers Support More Inflation Now

European Union Rejects Breakneck Fiscal Stimulus

economic-knife

Article on Associated Content by E. Manning

We are living on the edge of an economic knife. The U.S. government is bailing virtually everyone in the financial system out. If this continues, the U.S. can expect hyperinflation that hasn’t been seen since post-war Germany down the road.

November 16, 2008

Big U.S. Bailout Secrets, No Supervision

bailout game show giveaway

bailout game show giveaway

The Troubled Asset Relief Program, originally a $700 billion bailout program mandated by Congress was to be conducted with transparency and oversight. That hasn’t happened and none of the oversight posts have been filled. To make matters worse, the Federal Reserve is now showing $2 trillion in additional loans, which apparently have gone to the central bankers bottom line.

Disclosure has been a joke in a solution that was declared to be sound and manageable. Instead, there has been no accountability and a desire to change plans in the middle of the bailout game by Henry Paulson and his team. Most of Congress seems unconcerned.

House Rep Barney Frank gave the thumbs up revealing, “I talked to Geithner, and he was pretty sure that they’re OK.” Who is okay? Certainly the Federal Reserve is very okay as they have nothing to lose and everything to gain. Who is Barney Frank talking about? Revealing the collateral for the $2 trillion in loans would give away banking secrets, so nobody is talking.

The reality is that the Federal Reserve is taking bad debt from the banking industry and giving itself huge sums of cash, since it still holds all the loot. It’s profit taking time in New York City. Perhaps this is the money to pay for all those Ameros that the U.S. just sent to China to pay for their earthquake rebuilding project, but that’s only conspiracy talk. ~ 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

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