10:53 pm in Uncategorized by Liz Berry
Cross Post from Iflizwerequeen
” The market has become more of an exclusive gambling club for the very rich than a level playing field open to the ordinary investor.” -George Packer, A Dirty Business
Will another meltdown happen again? You betcha! Because little has changed.
- “. . .It is a remarkable failure of our system that we’ve not addressed the fundamental problems that brought us into the financial crisis. And it is cynical or naïve to imagine it won’t happen again.” [Neil Barofsky, the former inspector general of TARP]
- “Implementation of the Dodd-Frank regulatory reform law has been slowed, if not yet sabotaged, by lobbying on the part of the big banks and a general ebbing of will among politicians.” [Neil Barofsky]
The following is the concluding paragraph from George Packer’s article titled “A Dirty Business” that appeared in the June 27, 2011 issue of the New Yorker. It speaks to the underlying arrogance of these Wall Street millionaires.
“. . . .Two weeks after Rajaratnam was found guilty, an annual conference of hedge funds, which doubled as a fundraiser for pediatric cancer, was held in midtown Manhattan. Investors paid up to four thousand dollars to hear the views of some of the country’s most famous fund managers. The outlook was upbeat; no one mentioned the recent events downtown at the federal courthouse. The speakers took turns touting their favorite stocks: Zhongpin, the Chinese pork processor; the Home Shopping Network; Tiffany’s. A well-known fund manager, Michael Price, spoke up for financial stocks. “We like the big banks,” Price said. “Goldman Sachs, if you have the stomach. The risk/rewards today in financials in particular are very attractive.” Goldman stock, he said, is undervalued by at least a hundred dollars.“These are tremendous businesses, honest people,” he said. “These are not people who are trying to rip people off. . . . They have a long track record of doing extremely well for their clients as well as themselves.” He went on, “In 2008, all of a sudden they didn’t turn into criminals. There were some in the business who are no longer in the business, but it’s not Goldman Sachs.”
IFLWQ Comments regarding: “These are tremendous businesses, honest people,” he said. “These are not people who are trying to rip people off. . . . They have a long track record of doing extremely well for their clients as well as themselves.”
According to my ethical standards, Goldman Sachs is not honest. Specifically, they borrowed $10 billion dollars from the American Tax payers. AIG borrowed much more from the American taxpayers. They owed Goldman Sachs $12.9 billion so AIG used the taxpayer money to pay back Goldman. Goldman then “repaid” the American people the $10 billion they owed with the taxpayer money that AIG gave to them. Goldman kept the $2.9 billion and then in 2009 reported increased revenues of $3 billion. According to my math, Goldman Sachs repaid the American people with our own money and still has $2.9 billion that belongs to the American people and for the year 2009 their earnings were only $100 million–not $3billion as they reported.
Thus according to my ethics Goldman Sachs are both crooks and liars.
But they are much worse, according to my ethics, than mere crooks and liars, they are murderers just like most of the corporations on Wall Street. Thus, since “corporations are people”, I suggest they be executed–following a fair trial of course.
Every year Wall Street traders and investors murder millions of people and get away with it. Oh they don’t murder with guns or knives. They murder people with their ledgers, with their computers, with their trades. What people do on Wall Street chasing their bottom line every day results in the deaths of hundreds of people all over the world every single day. Health Insurance corporations murder people like 18 year old Chanel Bunce with insurance denials for medication that she needed to live. In 2008 the traders at the Goldman Sachs commodity index drove up the price of wheat by buying and buying and not selling. This put the price of a basic commodity out of reach of millions of people in countries like Africa. In 2008, coincidentally the largest wheat production year in 100 years, when wheat should have been the cheapest, millions more than normal that year starved to death. At the end of the year, the surplus wheat was sold to corporate agribusinesses for animal feed.
This inhuman institution we call “Wall Street” is a system that needs to be razed to the ground. We need to replace it with a financial system that works for the majority, not just the upper 5%.
Cosmetic changes and tinkering done by a Congress of 44% millionaires who profit from this corruption cannot be trusted to do what is necessary. It’s called “conflict of interest.”
Remove them in 2012 by voting non millionaire, non Wall Street stock holders to Congress. No Republicans and No Democrats.