CrossPost from IfLizWereQueen
What many common stock Wall Street Shareholders don’t realize is that they will eventually be on the menu–in fact some of them [Enron] have already been cannibalized.
Wall Street is perhaps the most undemocratic institution on the face of the planet. Why are we modeling our government after them?
Ironically, the conservative leaders who rail against “big” government are the ones who have grown it the most over the past 30 years precisely because they have followed the business model of Wall Street. By “conservatives” I refer to the Democratic corporate centrists and Blue Dog Democrats as well. In spite of the efforts of the Wall Street corporate-owned and sponsored media to paint them as “socialists”, there is no degree of separation between Bill Clinton and Barack Obama and most conservatives who advocate that Wall Street, its leaders and wealthy investors run our nation.
PROOf--From Bill Clinton we have these Wall Street approved gems: NAFTA, The Welfare Reform Act that put a time limit of five years on poverty for single parents with children; The Bank Modernization Act of 1999 that deregulated all financial services, allowing them all to function as banks. From Barack Obama and a Democratic majority Congress we have a renewal of George Bush’s Patriot Act and a renewal of George Bush’s tax cuts for the wealthy. As far as “growing big government”, few Presidents did a finer job of that than George Bush who served up the huge wasteful pork-ladened pig of “Homeland Security.”
Perhaps it would be helpful to remember that growth is the ideology of the cancer cell.
In case you have not noticed, the ultimate game on Wall Street is to grow so big that they eliminate all competition in their industry, the only store in town. Then, their employees, their suppliers, everyone must toe the line to whatever their board of directors dictates is good for the wealthy investors of their company. If there is only one source, the consumer can take it or leave it. The ultimate giant (that we once called a monopoly) no longer has to worry about the quality or the price of their goods or services because all competition has been eliminated. That is the ultimate goal of all Wall Street corporations, whether they admit it or not–to run all competition out of business acquire them for cents on the dollar. What the common stock holders don’t realize is that once there are no longer any customers to feed the monster, the monster begins to feed on its common stock holders. Enron is an example of that cannibalism. Only those at the top like Greg Whalley and John D. Arnold skated away from the scene of the “accident” unscathed. In fact, Forbes 2012 ranked John Arnold 212 with a net worth of $4 billion. You can’t say the same for eight PGE employees who together lost $2,882,000–188 years with PGE retirement savings lost. Of course when Enron took over PGE, these life savings of these people were transferred in the account of Enron as part of their 401k plan–a similar scam to the one that the conservatives are trying to pull on the American people now with Social Security. Then when Enron tanked, being the last ones onto the multilevel marketing scheme, they lost every penny.
We should demand that our leaders in Congress stop trying to run the U.S. government like a Wall Street Corporation as such wrong-minded leadership is destroying our people and our nation.
Wall Street Is the Original Multi-Level Marketing Scheme
Wall Street corporations are structured much in the same way that multi-level marketing schemes are structured, and those who come on board early in the game are the winners while those who enter later, get the shaft. [Ask all those people who worked for companies acquired by Enron whose 401k investments disappeared with Enron for an example of "coming to the multilevel marketing scheme late.]
In fact, multi-level marketing schemes are modeled after Wall Street. Wall Street IS a multi-level marketing scheme. When a company is private or pre-public they may issue several classes of preferred stock. For example, a company may undergo many rounds of financing with each round receiving separate rights and having a separate class of preferred stock. Thus a corporation may end up with a Series A preferred, Series B preferred, Series C preferred and common stock.
Anyone who is remotely familiar with the structure of a multilevel marketing scheme, or pyramid scheme as they are sometimes called, know that the spoils belong to those who get into the game early. The later you come into the game, the lower you are on the tier, the greater your risk and the lower your chances of making a profit. Of course, those at the top are quick to point out that “it’s only fair” since they took all the risk by getting into the game early. What they are not so quick to point out are the differences between the preferred share holder and the common share holder (you and the majority of shareholders).
Preferred shareholders have a preference in dividends. This means if there are dividends to be paid, then the preferred shareholders are paid first. Preferred shareholders are given preference in assets in the event of liquidation. This means that at the fire sale the preferred shareholders are paid off first (and there won’t be any money left for common stock shareholders). Preferred shareholders also have the option to convert into common stock. Why would they want to do that? Well in some cases they might want to do that so they could have voting privileges (not afforded to preferred shareholders) to prevent a hostile takeover–Thus giving them the opportunity to prevent it entirely, or forestall the efforts long enough to get their investments out.
The Wall Street Business Multi-level marketing scheme for the Rich is no model for government.
Privatization is NOT acceptable for some public institutions: healthcare insurance; public education; prison management; public utilities; management of water sources; management of essential infrastructures such as roadways and bridges.
The corporate model of globalization puts all citizens of the world at great risk–particularly in the arena of food security. We should encourage more and smaller operations of food growers all over the USA.
Nothing of any significance will transpire until we replace all members of Congress with Representatives and Senators who are not themselves part of the system that is destroying our nation. 44% of our Congress are millionaires while only 1% of our nation’s population are millionaires. The people we have in Congress are representing their own stock portfolios and not the people.
In 2012, if Americans all over the USA stood up and ran for office as Independents, we could replace nearly all members of the House of Representatives with people from Main Street America who know what it means to be out of work.