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View Diary: Six NEW Reasons To Support #OccupyWallStreet (126 comments)

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  •  re: but there's gotta be more: (2+ / 0-)
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    mightymouse, NoMoreLies
    1. stubbornly high oil prices (see Jeff Rubin)

    2. Growing wealth/income disparities that cannot support a consumer economy (see Robert Reich).

    3. multi-decade de-industrialization in US (no worries - we'll do retraining!)

    IOW - the banks are a big part of it, but only a part.

    I don't think you have a full understanding of how the banks get into everything.

    1. Stubbornly High Oil Prices: The banks buy oil futures for themselves and clients  or in some cases rent ships full of oil on a buy and hold plan which artificially increases oil prices. This was the primary reason it went to $147 in 08. Supposedly some new rules were put in place such as position limits (once was 500 Million) , but after reading the CFTC ( Commodities Futures Trading commission) request for public opinion into position limits recently, it becomes pretty obvious that they are as corrupt as the SEC . It's doubtful if position limits were established. Gary Genslar the head of the CFTC is a former Goldman Alum in good standing for 17 years.

    2. Growing wealth/income disparities that cannot support a consumer economy (see Robert Reich).

    Again we can thank the bail em out at any cost mentality of the Fed and Obama;'s economic team which Obama accented nicely by putting a bankers banker as his chief of staff. They insure the disparity continues, by trade policies, special insider deals that aren't available to you and me, insider information and complete immunity from the rule of law. The banks hold out campaign funds as the carrot and the stick. Who knows how much money is spent on outright bribery?

    One study came out that said that Bankers and traders had all the traits of real psychotics. Let's put into meaningful ways they use their powers. Wall Street Analysts are the real bosses of Publicly Owned Company C-Suites. They  can control the stock prices within limits which determines the annual compensation as the bulk of executive compensation comes in the form of restricted stock or stock options. This is why C-Suites are deaf to the yelling outside. If Goldman Sachs calls, everyone  holds their breath as the CEO tip toes over to the phone. "Did we do something wrong?"

    That's why there is no such thing as corporate citizenship[ anymore.

    How would that work in practice. Many people noticed that Twitter hadn't put Occupy wall street as a trending topic in the US despite it showing up world wide. Twitter recently went public through Wall Street. Insiders are usually locked up from selling shares for 6 months. There is a great deal of money at stake for individuals as in 100s of millions of dollars each. But it's not only because of the lock up but for the underwriters to continue to support the stock so management and early stage investors can get with their wealth intact

     It's usually  the lead underwriters decision when they can sell. This a theory: but it is a 2+2=4 theory that Twitter Management got to know the seamy side of the street when one of the fixers showed up to get assurances that Twitter would block the topic in the  USA.

    Most if not all, public companies depend on the bankers for keeping stocks aloft via "analysts recommendations", putting wealthy clients into it,  arranging follow-on financing through secondaries, buying the stock in the open market, issuing bonds,Mergers and Acquisitions to Private equity Loans for LBOs all the way  to handling the finances of the upper .1% money.

    3. multi-decade de-industrialization in US (no worries - we'll do retraining!)

    That's how this divide has steadily grown. As far as the de-industrializion of the US, that was part of the deal with the venture capitalists and the bankers. There were huge penalties to be paid if companies weren't outsourcing.  Start-ups couldn't get equity financing if they weren't already outsourcing. There was stock downgrades if companies didn't do it. Caterpillar, which is just behind Boeing in exports is already in the process of opening multiple Chinese Factories.

    This could switch back at anytime too. If Japan went nuclear it would destroy the global supply chain. Then the bankers would say "Why didn't you have back-up plans?"= "Conviction Sell"

    They have no long term memory or long term outlooks. It's "what have you done for me in the last 1.3 seconds." They have their hands in all areas of the economy which is why finance is 40% of GDP . They look for soft weak targets to attack and that just happens to be the other 99% of us.

    Carlin was right; "there's a club out there and we ain't in it. "

    •  wealth divide is synergistic w/bank takeover (0+ / 0-)

      yes, I agree those two phenomena have gone hand in hand .... but I would say that de-industrialization started well before that.

      The oil price thing is not fundamentally a function of market manipulation. As time goes forward, there is less oil available for importing nations. And greater slice of this shrinking total is taken by by China, India, and so on, leaving less available for the US and Europe.

      That is a real thing.

      Here I am! I'm up here! Where are you? - the Red-eyed Vireo

      by mightymouse on Mon Oct 03, 2011 at 06:44:56 PM PDT

      [ Parent ]

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