Could These 3 Simple Changes to Banking Fix the Economy? 'The Corrupt Banking System' by Victoria Grant. Chicago Fed Study Blasts the Lid Off of High Frequency Trading. We hear all sorts of reasons why the little guy won't buy stocks these days but the below graph, courtesy of a Chicago Fed study, might explain a lot of it.
The above chart shows an astounding percentage of market trades going through no human involved trading systems known as high frequency trading. The Chicago Federal Reserve paper, How to Keep Markets Safe in the Era of High-Speed Trading, prattled off a laundry list of the most recent high frequency trading debacles including Knight Capital as well as others. Yet in spite of these increasingly frequent stock market disasters, even basic risk controls are not implemented. Why? They claim it would slow down their trading systems. Industry and regulatory groups have articulated best practices related to risk controls, but many firms fail to implement all the recommendations or rely on other firms in the trade cycle to catch an out-of-control algorithm or erroneous trade. Ron Paul: Iceland Dismantles Corrupt Gov't Then Arrests All Rothschild Bankers...
Peter Schiff: We aren't that far behind Greece. Corporations are primarily intellectual property rentiers. Gavin Mueller has a great article in the summer issue of Jacobin Magazine about piracy, and at one point drops this jaw-dropping statistic: “Intellectual property makes up 80 percent of the net worth of US corporations and 60 percent of their exports.”
I ran the statistic down and found that it apparently originated from an FTC report called The Evolving IP Marketplace. This is an incredible statistic for a number of reasons, but the biggest one is that it strikes at the core of American economic mythology. We like to think of the US economy as one driven by private enterprise that is independent of government help. Leftists often point out that the independence from government is an illusion: government investment plays a significant role in the economy and, more fundamentally, property ownership and contract enforcement are government creations. Obama's top 5 contributors are the University of California, Microsoft, Google, DLA Piper and Harvard University. Romney's top 5 contributors are Goldman Sachs, JP Morgan, Morgan Stanley, Bank of America and Credit Suisse. : politics.
Banks in Libor Inquiry Are Said to Be Trying to Spread Blame. Paul Thomas/Bloomberg NewsRobert E.
Diamond Jr., the former chief of Barclays. Major banks, which often band together when facing government scrutiny, are now turning on one another as an international investigation into the manipulation of interest rates gains momentum. With billions of dollars and their reputations on the line, financial institutions have been spreading the blame in recent meetings with authorities, according to government and bank officials with knowledge of the matter. While acknowledging their own wrongdoing, institutions are pointing out actions at other banks that they believe are worse — and in some cases, extend to top executives. MY2iA.jpg (1013×5581) From an Unlikely Source, a Serious Challenge to Wall Street. It's over for the banking cabal. 4.jul.2012. "A Global Perfect Storm" by Nouriel Roubini.
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Click to hide this space NEW YORK – Dark, lowering financial and economic clouds are, it seems, rolling in from every direction: the eurozone, the United States, China, and elsewhere. Indeed, the global economy in 2013 could be a very difficult environment in which to find shelter. For starters, the eurozone crisis is worsening, as the euro remains too strong, front-loaded fiscal austerity deepens recession in many member countries, and a credit crunch in the periphery and high oil prices undermine prospects of recovery. The eurozone banking system is becoming balkanized, as cross-border and interbank credit lines are cut off, and capital flight could turn into a full run on periphery banks if, as is likely, Greece stages a disorderly euro exit in the next few months.
Moreover, fiscal and sovereign-debt strains are becoming worse as interest-rate spreads for Spain and Italy have returned to their unsustainable peak levels. Young Wall Street Traitor Joins Occupy Wall Street. Wall Street “Quant” Alexis Goldstein joins the opposition Wall Street recruits young, just out of college computer science majors and mathematicians to become “quants” whose skills are used among other things to predict when pension funds are going to make huge trades so that Wall Street can jump in ahead of them and do deals effectively raising the price the pension fund must pay or lowering the profit they might make.
One such young twenty something quant was Alexis Goldstein. Goldstein devised trading software for Deutsche Bank and Merrill Lynch. Iceland proves that bailing out the middle class works better than bailing out banks - The Young Turks with Cenk Uygur. To Our Faithful Current.com Users: Current's run has ended after eight exciting years on air and online.
Out of the Mouths of Babes: Twelve-Year-Old Money Reformer Tops a Million Views. The youtube video of 12 year old Victoria Grant speaking at the Public Banking in America conference last month has gone viral, topping a million views on various websites.
Monetary reform—the contention that governments, not banks, should create and lend a nation’s money—has rarely even made the news, so this is a first. Either the times they are a-changin’, or Victoria managed to frame the message in a way that was so simple and clear that even a child could understand it. Basically, her message was that banks create money “out of thin air” and lend it to people and governments at interest. If governments borrowed from their own banks, they could keep the interest and save a lot of money for the taxpayers.
She said her own country of Canada actually did this, from 1939 to 1974. Borrowing privately means selling bonds at market rates of interest (which in Canada quickly shot up to 22%), and the money for these bonds is ultimately created by private banks. Problem solved; case closed. Mr. How the "Job Creators" REALLY Spend Their Money. In his "Gospel of Wealth," Andrew Carnegie argued that average Americans should welcome the concentration of wealth in the hands of a few, because the "superior wisdom, experience, and ability" of the rich would ensure benefits for all of us.
More recently, Edward Conard, the author of "Unintended Consequences: Why Everything You've Been Told About the Economy Is Wrong, said: "As a society, we're not offering our talented few large enough rewards. We're underpaying our 'risk takers.' " The Austerity Agenda. “The boom, not the slump, is the right time for austerity.”
So declared John Maynard Keynes 75 years ago, and he was right. Even if you have a long-run deficit problem — and who doesn’t? 84% of All Stock Trades Are By High-Frequency Computers … Only 16% Are Done By Human Traders. Given The Dominance of The Machines, Do Flesh-and-Blood Traders Have a Chance?
As of 2010, 50-70% of all stock trades were done by high frequency trading computer algorithms. Lifting the Veil - A New World Society. Don't Tax the Rich, Smash Their Privilege: A Response to Warren Buffett. Recently the progressive blogosphere was abuzz with approving links to billionaire investor Warren Buffett's latest New York Times op-ed, "Stop Coddling the Super Rich.
" In this piece, Buffett concisely exposes the various loopholes that allow the wealthiest Americans to pay far fewer taxes than their middle class, working class, and poor counterparts. While the tax code in all its complexity certainly privileges the wealthy at the expense of most Americans, this barely scratches the surface of the ways the state oppresses poor and working people to line the pockets of the opulent. Buffett's article never mentions direct corporate welfare or the numerous privileges that the wealthy hold thanks to intellectual property, the land monopoly, regulatory barriers to entry, suppression of labor movements, and imperialism, to name a few. Coca Cola, Human Rights, and Labor Suppression According to the #1 corporation in Warren Buffet's stock portfolio is Coca Cola. Further reading: Five Reasons Why The Very Rich Have NOT Earned Their Money. The wealthiest Americans believe they've earned their money through hard work and innovation, and that they're the most productive members of society.
For the most part they're wrong. As the facts below will show, they're not nearly as productive as middle-class workers. Yet they've taken almost all the new income over the past 30 years. Buttonwood: Marginal improvement. "Captured Europe" by Simon Johnson. Exit from comment view mode. Click to hide this space WASHINGTON, DC – Europe’s policy elite – the people who call the shots at the national and eurozone level – are in serious trouble. Market exchange rules responsible for wealth concentration, physicists say. Two Brazilian physicists have shown that wealth concentration invariably stems from a particular type of market exchange rules -- where agents cannot receive more income than their own capital.
The authors concluded that maximum inequalities ensue from free markets, which are governed by such seemingly fair rules. This study, published in European Physical Journal B, was conducted by J. Roberto Iglesias and Rita de Almeida from the Brazilian National Institute of Science and Technology of Complex Systems, based in Porto Alegre. This Brazilian city is famous for hosting the World Social Forum, which is designed to find alternatives to economic liberalism. To study free market models, the authors used statistical mechanics methods focusing on the dynamic of wealth exchange over time. Americans Will Need “Black Markets” To Survive. As Americans, we live in two worlds; the world of mainstream fantasy, and the world of day-to-day reality right outside our front doors. One disappears the moment we shut off our television. The other, does not… When dealing with the economy, it is the foundation blocks that remain when the proverbial house of cards flutters away in the wind, and these basic roots are what we should be most concerned about.
While much of what we see in terms of economic news is awash in a sticky gray cloud of disinformation and uneducated opinion, there are still certain constants that we can always rely on to give us a sense of our general financial environment. I fear for a social explosion: Greeks can't take any more punishment. Why economic inequality leads to collapse. During the past 30 years, a growing share of the global economic pie has been taken by the world's wealthiest people. Overheard on the Goldman Sachs Elevator. The Big Lie: Wall Street has Destroyed the Wonder That Was America. Imagine a vast field on which a terrible battle has recently been fought, the bare ground cratered by fusillade after fusillade of heavy artillery, trees reduced to blackened stumps, wisps of toxic gas hanging in the gray, and corpses everywhere.
[1112.3095] Evidence of market manipulation in the financial crisis. Who Really Controls the World? The Size of the Bank Bailout: $29 Trillion - US Business News Blog. Use RICO Act to Prosecute Banks and Corrupt Politicians. G.O.P. Monetary Madness. I Said No to My Student Loan: One Borrower's Decision to Stop Paying. December 4, 2011 | Like this article? Join our email list: Stay up to date with the latest headlines via email. Dwolla. Ben Milne founded Dwolla There's a tiny 12-person startup churning out of Des Moines, Iowa. 60 Minutes Exposes Specific Instances of Actionable High-Level Fraud at Citibank and Countrywide - It is being Actively Ignored. "26 TRILLION Dollars In Bank Bailouts! That's Not Including TARP!" Alan Grayson. Michael Hudson: Debt and Democracy – Has the Link Been Broken? By Michael Hudson, a research professor of Economics at University of Missouri, Kansas City and a research associate at the Levy Economics Institute of Bard College.
A Banker Speaks, With Regret. What to do when you’ve got money in the bank and you’re worried about a dollar collapse: The Past and Future of Money. Money. Cayman directors: 'next big scandal' for hedge funds - FT. LEAKED MEMO: Wall Street Has A Much Bigger Worry Than Obama. Charts for the “Facts of the Economic Crisis” Column. How "Move Your Money" Could Hurt Wall Street By As Much As $8 TRILLION. Bernard Lietaer: Money diversity. Why isn't the economy more like hydraulics? The Euro Is Doomed: How the Collapse of Italy and Greece Will Destroy the Currency. TURNING THE TABLES ON WALL STREET: NORTH DAKOTA SHOWS CASH-STARVED STATES HOW THEY CAN CREATE THEIR OWN CREDIT. Now Is the Time for an Economic Bill of Rights. Ten Million Families Sliding Toward Foreclosure. Finally, a Judge Stands up to Wall Street.