The Wall Street Takeover and the Next Financial Meltdown Simon Johnson, co-author of “13 Bankers” describes the rise of concentrated financial power and the threat it poses to economic well-being. He explains that over the past three decades, a handful… From: DailyNews Views: 0 0 ratings Time: 06:02 More in News & Politics
Almost three years after President Obama signed the Dodd–Frank Wall Street Reform and Consumer Protection Act into law, few of its provisions have actually come into effect. Thanks in part to the banking lobby, the process is stuck in what The Washington Monthly calls “ the seventh circle of bureaucratic hell .” We checked in with Economist Simon Johnson to find out where things stand and whether we should be worried. Simon Johnson
The Daily Show Get More: Daily Show Full Episodes , Political Humor & Satire Blog , The Daily Show on Facebook The not-as-funny way to make the point Jon Stewart made about the Republican conception of the entitlement society and where it fails to intersect with reality comes from Simon Johnson . The true “moochers” in American life are, not surprisingly, the ones with all the political power and influence, who can grab themselves gifts and goodies from the political class. That would include large corporations and major banks: …special interests compete for influence through campaign contributions and other forms of political donations. They also run large, sophisticated media campaigns aimed at persuading policymakers and the public that what is good for their special interest is good for the country. No one has succeeded in the modern American political game like the biggest banks on Wall Street, which lobbied for deregulation during the three decades prior to the crisis of 2008, and then pushed back effectively against almost all dimensions of financial reform. Their success has paid off handsomely. The top executives at 14 leading financial firms received cash compensation (as salary, bonus, and/or stock options exercised) totaling roughly $2.5 billion in 2000-2008 – with five individuals alone receiving $2 billion. Just this week, we saw the House vote, in bipartisan fashion, to undermine another element of Wall Street reform , which would roll back requirements for financial advisors for municipalities to register with the SEC and accept fiduciary duty to act in the best interest of the municipality and its taxpayers. Barney Frank voted in favor of rolling this back, which would invite the worst kind of ripoffs by bank banks on the muni sector. The takers in American society line up with those who have the ear of the government they can take from. That wouldn’t be the poor, elderly and disabled. The financial crisis cost taxpayers $12.8 trillion , according to the group Better Markets, almost all of it flowing to Wall Street. A meager food stamp program can hardly compete on a scale with this corporate welfare. And those are just the explicit subsidies; the implicit ones from Too Big to Fail, in terms of added risk thresholds and ability to borrow, is incalculable. Johnson thinks Romney missed a step by focusing the subsidy issue on the poor rather than at Wall Street. Sadly, that’s not a bug, but a feature.
The David vs. Goliath story of Better Markets, a non-profit lobbying in the public interest for financial institution reforms. Cast: grant doug Tags: better markets , tbtf , too big to fail , wall street , occupy wall street , ows and simon johnson
JPMorgan Chase has disclosed $2 billion in lossesfrom a trading group’s credit investments, causing the bank’s share price to plummet in after-hours trading. Via : Jamie Dimon, the chief executive of JPMorgan, blamed “errors, sloppiness and bad judgment” for the loss, which stemmed from a hedging strategy that backfired. The trading in that hedge roiled markets a month ago, when rumors started circulating of a JPMorgan trader in London whose bets were so big that he was nicknamed “the London Whale” and “Voldemort,” after the Harry Potter villain. The losses are expected to take a toll on the bank’s larger earnings, with the corporate group expected to lose $800 million in the second quarter, the company said today in its quarterly securities filings. JPMorgan had previously estimated that it would report a net income of roughly $200 million. The final report will depend on if the company can recover, though Dimon said things could “easily get worse.” Via : Given Dimon’s resistance to the ban and new regulations, “he’s got a lot of egg on his face right now,” said Craig Pirrong, a finance professor at the University of Houston. “Any chance they had of getting a relative loosening of Volcker rule, anything of that nature, that’s out the window.” … “It’s classic Wall Street hubris, which we’ve seen so many times before,” said Simon Johnson, a former chief economist at the International Monetary Fund who now teaches at the Massachusetts Institute of Technology. “What’s particularly ironic here is that Jamie presents himself, and is believed by others to be, the king of risk management.” In an emailed correspondence, Senator Carl Levin, D-Mich., chairman of the Senate Permanent Subcommittee on Investigations and co-author of the Merkley-Levin language establishing the Volcker Rule, issued the following statement Thursday in reaction to news that JP Morgan had suffered a $2 billion trading loss: “The enormous loss JP Morgan announced today is just the latest evidence that what banks call ‘hedges’ are often risky bets that so-called ‘too big to fail’ banks have no business making. Today’s announcement is a stark reminder of the need for regulators to establish tough, effective standards to implement the Merkley-Levin language to protect taxpayers from having to cover such high-risk bets.”
Please CLICK the “LIKE” button and post COMMENTS below! This really helps us out. Thank you! Part 2 of my series about the World’s Greatest Money Trick of how banksters have used propaganda to convince people to save and hold fiat paper currency that loses double-digit percents of purchasing power every year versus converting this counterfeit bogus paper money into the real money of gold and silver. The Quiet Coup, by Simon Johnson available at bit.ly/9fxYST . For an explanation of what are the Gold Certificates that the US Fed holds, please refer to this link bit.ly/1jdAAL . You may find part I of this discussion at youtube.com/watch?v=6ZaU38-brrU . This video is designed to provide knowledge for informational purposes only and does not constitute a recommendation or endorsement with respect to buy, hold, or sell any company, security or investment. SmartKnowledgeU™ Pte Ltd does not provide individual investment advice, manage money, or act as an investment advisor. Therefore, you should always seek the advice of an investment professional or other appropriate investment advisor regarding your particular situation. The information is taken from sources believed to be reliable, and the information is believed to be accurate at the time it is posted to the Internet. However, there is no way to ensure that the information is accurate at any moment in time. Furthermore it should be noted that the investment world is not static, and that the price of many discussed stocks and investment opportunities will most likely have changed since the time this video was made. Therefore, the additional risk of potentially higher or lower-priced investment opportunities should be considered under the consultation of a professional investment adviser. To read our full disclosure, please visit our website at smartknowledgeu.com . Cast: SmartKnowledgeU Tags: gold myths , silver myths , euro collapse , dollar collapse , OWS , liberty , freedom , resist tyranny and world’s greatest money trick