Nail The “Robber Barons”!

Thanx to Clinton and his DLC a/holes we are stuck in this vicious cycle of banks dictating to the society……..the repeal of Glass-Steagall made it possible for banks to gamble with others money and not face any charges for their complicity in the fraudulent practices of a few big banks in the schemes……

Oh yeah the Obama admin passed a reform bill and some toothless regulations to make us think that we are safe to return to the “markets”……I disagree….I believe that this will happen again and the banks will be more covert in their operations…..but at least the present admin is trying to do something….JP Morgan has been hit with a little fine and Bank Of America as well….but they continue their fraudulent practices……

The FDIC has tried to change stuff………

The Federal Deposit Insurance Corp sued 16 of the world’s largest banks on Friday, accusing them of cheating dozens of other now defunct banks by manipulating the Libor interest rate.

The global financial institutions broke certain swaps contracts they had entered into with the now-closed banks, by separately colluding to rig the Libor rate to which the contracts were tied, the FDIC said.

They have also been sued by investors and others who claim they lost money due to the manipulation. A federal judge last March dismissed many of those claims that were based on antitrust law, but has yet to rule on cases that rely on the “breach of contract” theory used by the FDIC.

The lawsuit also accused the British Bankers’ Association, the U.K. trade organization that during the period at issue administered Libor, of participating in the scheme.

The BBA had said it independently monitored the banks’ Libor submissions, and represented that Libor was a “transparent” benchmark, even though it knew those statements were false, the FDIC said. A representative of the BBA declined comment.

The banks named as defendants include Bank of America Corp, Citigroup Inc, Credit Suisse Group AG, Deutsche Bank AG, HSBC Holdings PLC, JPMorgan Chase & Co, and Royal Bank of Scotland Group PLC.

Other defendants in the lawsuit are Rabobank, Lloyds Banking Group plc, Societe Generale, Norinchukin Bank, Royal Bank of Canada, Bank of Tokyo-Mitsubishi UFJ and WestLB AG.

Everybody wants me to be responsible for the stuff I do then corporations, who are people now, should be held to the standard that the rest of us are held……..if they commit a crime it is time for jail time and total restitution.

Public Enemy #1–Eric Holder

That’s right…I said public enemy #1….NO I am not jumping on the right wing bullshit wagon…..I do not like Holder for a whole array of reasons and none of them have anything to do with the talking points of the right talking points….like “fast & Furious” or drones or surveillance or…..pick a subject that they like to go on about incessantly….I am talking about why the Justice Department did not pursue the banks for their complacency in the 2008 economic meltdown….and why after all these years these same thieves are allowed to continue to play their dangerous game…..

After reading an article in Truthout….I ask these questions……..

Providing additional evidence that the Obama Administration’s Department of Justice (DOJ) is protecting “banks too big to fail,” Pulitzer Prize winning financial reporter David Cay Johnston has revealed that the DOJ has refused to force JPMorgan Chase to comply with an ongoing investigation into the bank’s possible knowledge of Bernard Madoff’s fraud scheme of a few years ago.

The information obtained might reveal that the bank chose to financially benefit from criminal activity:

Bernard Madoff’s principal bank, JPMorgan Chase, has for years obstructed federal bank examiners trying to ascertain what it knew about his gigantic Ponzi scheme, an official document obtained by Newsweek shows.

The Justice Department refused in September to back up Treasury inspector general staff who wanted a  court order to enforce a subpoena, in effect shielding JPMorgan from law enforcement, the October 8 document shows.

The Justice Department told the Treasury Inspector General “that they were denying the request for enforcement of the subpoena,” which means officials “could not undertake further actions regarding this matter,” wrote Jason J. Metrick, the inspector general special-agent-in-charge.

Johnston disclosed the latest damning indication of the DOJ shielding Wall Street banks that dominate US finanes in a Newsweek article. The DOJ pattern of not exploring potential big bank criminal activity was admitted to by Attorney General Eric Holder — as BuzzFlash at Truthout reported at the time — as recalled by Johnston:

Read More…

Holder is as much at fault as the bankers……time for this person to disappear (take that anyway you choose)……..crooks and cons are just that and until we hold those responsible for their actions we will continue this vicious cycle of boom and bust…..

The markets have gone batshit crazy, closing on record highs almost daily… me we are being set up for another meltdown…..maybe not tomorrow….but it is coming and coming hard!

Iceland Shows The World

This would have been the perfect gift for the country to give to its people on the joy of the season……start putting the thieves that work at banks in prison…….wishful thinking I know but at least one country has done the right thing…….(read on)…..

There has been lots of mumbling and grumbling about what the bankers were allowed to get away with when they caused the economic meltdown of 2008……..they have made obscene bonuses and still walk among us even after about 50% of the population lost lots of their coveted nest egg that they were depending on for a comfortable retirement….the American Dream was crapped on by the banks and the thieves they employ……some Americans have called for these crooks to be jailed for they basically robbed the population of their funds….but so far they got bigger bonuses and are not help responsible for their actions…….what to do…..what to do?

The small island country of Iceland has shown the world what should be done to these cons……

(Newser) – Iceland has done something highly unusual with some of the bank chiefs blamed for the country’s 2008 financial collapse: put them on trial and sent them to prison. Four former Kaupthing Bank bosses have been sentenced to between three and five years for market abuses relating to a deal where a Qatari sheikh bought a confidence-boosting stake in the bank with money that had been provided by the bank itself, the BBC reports.

Prosecutors said the loans, made soon before Kaupthing collapsed under massive debts, were made solely to boost the bank’s share price, reports Reuters. The bank’s former chief executive and chairman of the board received prison terms, along with one of its majority owners and the chief of its Luxembourg branch. The sentences are the heaviest Iceland has ever handed down for financial fraud, but prosecutors say a bigger case against Kaupthing is in the works

And that my friends is how you hold con artists responsible for their actions……America should follow suit….but NO…we fine them and let them return to the actions they were doing that caused the economic collapse……where is the logic here?

They Nationalized The Banks!

File this under the heading……Can’t Fix Stupid!

This is the cry from the right wing…..I read a bunch of these pieces of crap on Twitter today…..all were railing that the new “Volcker Rule” will, in essence, nationalize the banks and in turn bring down the whole economic system in the US….

For those with addled brains let me help with the definition of the term…….nationalization……it means the transfer of private assets  into public ownership……see how simple that was and has NOTHING to do with the new “Volcker Rule”………

Let me say here and now…If you believe that this will nationalize the banks then you are sadly mistaken…it will try to prevent the gambling by banks that caused the collapse in 2008…..I am guessing here but NO one wants to revisit the crippling effect that the banksters caused back then…..but do not take my word for it……

(Newser) – The FDIC and Federal Reserve both unanimously approved the long-debated Volcker Rule today, and three other regulatory agencies plan to before the day is out, making it official. The rule, named for and originally proposed by Paul Volcker, aims to ban proprietary trading, “or in plain English,” as the Washington Post puts it, “it removes the parts of banks that gamble and act like hedge funds, because those parts can blow up.” Or at least, that’s what it was supposed to do.

But big banks like JPMorgan Chase and Goldman Sachs have been lobbying against the law for more than three years, Bloomberg points out, and their “lobbying efforts paid off” in easing some provisions. On the other hand, recent weeks have seen a charge from regulators favoring a tougher version, and they’ve scored points, too, the New York Times reports. Here’s what each side won:

The Tough Side:

  • When JPMorgan lost $6 billion on the London Whale trade, it said the position was a “hedge.” The rule still allows hedging, but banks will now have to name a specific, quantifiable risk that each such trade is hedging against.
  • Bonuses and compensation must be structured in a manner that doesn’t encourage “prohibited proprietary trading.”
  • Chief executives will have to personally “attest” every year that the bank has measures in place to comply with the rule.

The Not-So-Tough Side:

  • Banks have until July of 2015 to implement the rule, though they must make a “good faith effort” to do so before that.
  • Banks are still allowed to “make markets,” meaning to act as middle men for clients who want to buy and sell stock. Under this guise, banks could buy and hold a stock, arguing that a client might someday want to buy it. The rule mandates that banks buy only enough to meet the “reasonably expected near-term demands of clients,” but leaves it up to banks to decide what’s reasonable.
  • Banks can still make proprietary trades in bonds issued by governments.
  • Many banks tell the Wall Street Journal that they think they’re already in compliance with the law, while some business groups say they intend to challenge the rule in court. Reform advocates, meanwhile, are starting to call again for a return to Glass-Steagall.

There you have it….this is NO one’s idea of nationalization.  If possibly do then I suggest that you spend less time on World of Warcraft and more time educating yourself on the issues….

Personally, I do not think that this piece of legislation goes far enough to prevent banks from doing the gambling that they have come accustomed to in the past……they are still allowed to gamble and that will cause yet more economic problems in the future…..

Ignored By MSM

Now that I have vented about the Clintons let’s move on to other issues……….

We all have heard the stories about embassy closings or RNC picking a pathetic battle with MSM, of course there will always bee a NSA story and a Obama scare story….but there were other stories that need our attention……but for some reason the MSM does not like these….

1. Over 200 arrested at anti-Chevron protest: More than 200 people were arrested outside of a Chevron refinery in Richmond, California, one year after a pipeline leak sparked a major fire at the facility.

2. Extreme heat is killing off thousands of fish in Alaska: Water temperatures reached 80 degrees in some parts of Alaska, prompting mass die-offs of salmon and trout.

3. Maine’s lobster boom, and why experts predict a dramatic bust: Maine’s lobstermen are enjoying a record catch, but it may be short-lived thanks to climate change.

4. Florida will hold hearings on its “Stand Your Ground” law this Fall: After weeks of protests by activists, Florida’s state legislature will hold hearings on its infamous “Stand Your Ground” laws sometime this fall.

5. NRA board member Ted Nugent: Trayvon Martin got what he deserved: Referring to the teenager as bloodthirsty “wannabe gangsta,” the conservative musician said that Martin “got justice.”

6. What you need to know about the closings of U.S. diplomatic facilities: Dozens of U.S. embassies across the world have been temporarily closed. Here’s what you need to know about why that is and what it means for the debates over diplomatic safety and privacy vs. security.  (This one made the nightly news….it is substance for more BS)……..The Right is stroking put because Obama told AQ that they were listening….but ask yourself….if he had not done this and there had been another attack what would the Right hve to say?  This is just too silly for the news…..

7. Spurred on by anti-abortion lawmakers, North Carolina’s Health Department is cracking down on abortion clinics: An outside investigation reveals that state lawmakers’ crusade against abortion may be directly influencing the health department’s recent flurry of clinic closures.

8. Banks continue to flout foreclosure law in Massachusetts: Wrongful foreclosures continue to plague homeowners in the state.

9. Police are seizing the property of people who have never been accused of a crime: As law enforcement officers continue to ramp up use of a controversial practice known as civil forfeiture, police are seizing cash, cars, houses, and other assets in the name of drug enforcement without ever having arrested or charged their owners with a crime.

10. Chicago cardinal pulls support from immigration groups who also back marriage equality: Cardinal Francis George says immigration groups that support marriage equality don’t “respect the teachings of the Catholic faith.”

I am open to any theory on the reason that these stories were ignored……tell me…..then we can discuss……

Blow Made Them Do It!

I enjoy a good conspiracy theory as well as the next guy…..I mean we have had good ones over the years….the Grassy Knoll, all the 9/11 stuff, ancient aliens caused the plague, and so on……I’m guessing that my readers have a few that they like over others… I said I good conspiracy is very entertaining.

Recently, I read one that made me chuckle aloud…….

(Newser) – Forget all those complicated economic explanations. The real reason for the financial crisis was simple: Bankers were doing too much coke, says a professor and former UK government drugs adviser. The drug made bankers “overconfident,” prompting them to take “more risks,” says David Nutt. Cocaine fueled their “culture of excitement and drive and more and more and more,” he says. It’s not Nutt’s first controversial statement, the Telegraph notes: He was fired from the government after saying ecstasy and horseback riding were about even, safety-wise; he’s also claimed that alcohol is more dangerous than heroin.

I wish I could say something clever, but this is beyond lunacy……thoughts?

Make The Bastards Pay!

In 2008 we had a horrible crash….an economic tsunami……and we good guy taxpayers bailed out the culprits that screwed everything up……these corporations are doing fin e now….the economy still sucks, unless you have lots of cash, and no had to pay the price for shady economic practices……the government (insert raucous laughter here) put together a bill that woiuld help to control this sort of thing from happening again….the problem is they let the companies that caused the problem write the law….in other words….IT SUCKS…IT IS IMPOTENT!

Personally, I think someone should have to pay the price for their deception and theft……

At least someone is doing something about these tools that game the economy to their benefit and never are held accountable for their crimes….yes, I said crimes!

Switzerland has gone about making the bastards pay….one way or the other……

Swiss citizens voted to impose some of the world’s strictest controls on executive pay, forcing public companies to give shareholders a binding vote on compensation, initial result projections showed.

Claude Longchamp, of pollsters Gfs Bern, told Swiss state television on Sunday early returns in a referendum showed 68 percent backed plans for shareholders to veto executive pay and for a ban on big rewards for new and departing managers.

The clear majority was unusual given fierce opposition and intense campaigning by a business lobby group, which warned the proposals will damage the country’s competitiveness and scare away international talent.

Support for the move was fired by anger over the big bonuses blamed for fuelling risky investments that nearly felled Swiss bank UBS, as well as outrage over a proposed $78m payment to outgoing Novartis chairman Daniel Vasella.

Longchamp said the public outcry last month that forced Novartis to cancel Vasella’s “golden goodbye” helped drive the campaign.

“It emotionalised and it mobilised,” he said.

Short-termism’ culture

Thomas Minder, the businessman-turned-politician behind the campaign, says his proposals are aimed at ending a culture of short-termism and rewards for managers of badly-run companies rather than just capping salaries.

Despite threats from some executives, Switzerland is unlikely to see an exodus of big companies, drawn to the country by low taxes, stable politics and business-friendly laws.

And companies will seek ways around the new rules to reward executives, just as banks in Europe are looking to soften the impact of a cap on bonuses for top staff agreed by European politicians on Thursday.

“If a company wants to pay a top executive 25 million, then they will find a way to do so regardless of the initiative,” Rolf Soiron, chairman of cement maker Holcim and drugs industry supplier Lonza, told the Reuters news agency before the vote.

Experts also question whether shareholders in Swiss companies will make full use of their new rights.

Of the top 100 Swiss companies, 49 already give shareholders a non-binding vote on the pay of executives. But while opposition to pay deals is on the rise, a majority of investors have never voted them down.

Possible jail

Swiss companies accounted for five of the top 10 best-paid chairmen in Europe in 2011, but only the heads of Novartis and Roche made it into the continent’s top 10 for chief executives.

While anger at multi-million dollar payouts for executives has spread around the globe since the financial crisis, the Swiss system of direct democracy means populist proposals have a greater chance of implementation.

Minder’s initiative forces binding votes on compensation every year as well as on board composition and would also ban bonus payments to managers if their companies are taken over.

The plan also includes possible jail sentences and fines for breaching the new rules.

While Switzerland has fared relatively well through the financial crisis, the near collapse of flagship bank UBS in 2008 stoked anger among Swiss who blamed its heavy losses on rewarding bankers to make risky bets.

Last year, more than one-third of UBS shareholders rejected the bank’s plans for executive pay, including a $4.2m signing-on fee for new German chairman Axel Weber, after a sub-par 2011 profit and a $2bn rogue trading scandal.

Now there is an idea……an idea that should be made here………but it will not…..why?  Our government is owned lock, stock and barrel by these thieves…until we make them responsible for their actions we will always have these sorts of crises….since not much has changed since 2008, it is only a matter of time before we are hit again……..We must make the bastards pay!

So You Want Solutions?

A very much appreciated reader of Info Ink is Terrance or Sibboleth Nation (go to blogroll and visit his site for a different perspective and go often) and I have been exchanging views about the high price of gas and what to do about it………

Everybody, whether left of right, has been bitching that they want solutions to the banking fiasco and for the price of high gas prices…..but are they really serious about the solutions?  Or are they willing to put up with the solutions?  Read on, McDuff!

During this circus we call an election cycle we keep hearing that all Americans want solutions to the problems that the country is experiencing…….a couple of the gas off the top of my head….Gas prices and banking…….these came to mind because I was watching an interview with Nevada’s babbling brook, Sharon Angel…..she was talking about the problems of her state and the country and as usual the housing, gas prices and lack of jobs is all Obama’s doing…..a typical BS answer for those with little brains and no logical thinking processes……

I tweeted that she should be asked to give how Obama was at fault for high gas prices…….of course not being one of the boys in the MSM, my question was not asked……I am positive that her answer would have been domestic drilling……….to begin with Oil Companies set the prices not the president….I will concede that banks are still stealing us blind is a bit of the Prez fault….Dodd-Frank was a toothless python……but the problems with Freddie/Fannie Mac is NOT the president’s fault…jobs… by now we all know whose fault that is……

Now let me say that if you want solutions to high gas prices and the banks there is only one answer for both problems…..and the answer will send the Right into convulsions………Nationalization!

Let’s start with gas prices………Mitt has said that one his first day of his presidency gas would be $2 a gallon….if you believe that then by all means vote for a liar….the only way for gas to come down is eliminate the profit margin and the only way to eliminate the profit margin is to nationalize the industry….any other solution is pure BS and will NEVER happen… matter who tells you it will.

The banking fiasco……again the only way to eliminate the boom and busts of the industry is for the government to control the industry…..and again that would be nationalization of the industry…eliminate the profits and you can eliminate the cycles of boom and bust……more regulations will not do it and less regulations will definitely NOT do it…….

The ONLY way to make good on campaign promises of cheap gas and less banking fiascoes is nationalization… it or not…….with out it gas prices will continue upward and banks will continue to gamble and get government money to pay their debts….bitching about it will NOT help….only one answer to make it so…..NATIONALIZATION!  Yes, the other “N” word!

Do You Know What happened In 2008?

Yes, I am talking about the crash and the ensuing recession, the unemployment, foreclosures and the tune continues…….you may know that your 401k is not worth the paper it is printed on…..but do you know just how the crash happened?

I am guessing that most Americans either do not know or maybe they just do not give a crap……but if you are truly interested in educating yourself on how you were screwed….then by all means read on…….if not then maybe a good episode of “Jersey Shore” that teaches a lot about life is on MTV….if you do not care enough to learn what happen then keep thy mouth shut when it blows up again….and make NO mistake ….IT WILL!

A very good explanation has been written by Zeus Yiamouyiannis……..

Here is how the counterfeit value derivative con works.  It’s a game of “I pretend, you pretend, we all pretend, and the taxpayer will pay in the end”.

1) I’ll create an instrument, say a credit default swap (CDS), an unregulated insurance with no capital requirements, with a certain “notional” value. Notional value is just something I assign. It does not have to be attached to or backed by any real asset or actual money/principal, but I can pretend as if it is. (Notional amount.)

2) As a seller, I will just declare that this swap covers the full value X of this company, contract, etc. if credit event Y happens. I receive lucrative insurance premiums and fees for my unbacked promise. The CDS’s value is based in nothing more than my promise to pay. I don’t have to have adequate capital reserves on hand, but I can pretend as if I do perhaps with some mini-reserves based on objective-seeming risk ratios calculated by my mathematical models. (credit default swap.)

3) As a buyer, you can then buy as many of these CDS’s as you want, even for a single default. If you are really sure something is going to tank you can insure it 30 times over (or a 100 or 1,000) and get 30 (or 100 or 1,000) times the return when it goes bust! In regulated insurance it is unacceptable to insure beyond the full replacement value of the underlying asset. Not so with CDS’s. The seller has gotten 30x the premiums and the buyer gets 30x value in the event of default. As a buyer of this phony “insurance” you don’t have a stake in the affected properties, but you can essentially pretend you do.

4) As buyer and seller of CDS’s either one of us can assign our risks to a third party through another contract, and pretend as if we are covered in case our own game playing blows up in our faces. This allows us to retain even less reserve capital and spend freed-up funds on more high-risk, high-(pseudo) return speculation. (The monster that ate Wall Street.)

5) We can purchase and sell of these derivative contracts to each other at unlimited rates to generate massive volume and huge fees and profits. We can simply hyper-cycle risk and take our chunk each time.

According to the Bank of International Settlements, as of June 2011 total over-the-counter derivatives contracts have an outstanding notional value of 707.57 trillion dollars, ( 32.4 trillion dollars in CDS’s alone). Where does this kind of money come from, and what does it refer to? We don’t really know, because over-the-counter derivatives are not transparent or regulated.

Read More…

The answer to your questions are not as difficult to understand as the msm and the economists want you to believe……..once you learn the facts then you can keep your bank and brokers in check….that is if you really give a crap……and Dodd-Frank is a blowjob….it does little to keep the financial sector from gaming the system again and causing another meltdown….personally, I want to see someone go to prison because of what has been done to the economy and beyond that I want to make sure these con men cannot either game the system again so that we, the taxpayer, give them an out…..let them ROT in their own deceitfulness!