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G. Edward Griffin: Individualism & Capitalism vs. Collectivism & Monopolies

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MorphCity.com

G.Edward Griffen discusses property ownership and the legally protected fraud of the banks. Griffen says we have a choice of two things: Individualism v collectivism.  An excellant interview wherein Griffen says the banks are using the state to plunder the people. 

Pick your “ism”: Capitalism vs. CRAPitalism

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Marti Oakley

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From 1948….a 10 minute cartoon about signing your freedom away in exchange for an “ism”.  This could have been produced today especially in light of the passage of three more unconstitutional trade agreements rammed through congress against the best interests of the people. 

Free trade and Capitalism is not the same as privileged trade and CRAPitalism.

Be careful what you wish for……you may get it.

CRapitalism: The Liquidating of America/ Part 1

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Marti Oakley (c)copyright 2011 All Rights Reserved

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“we have a system of privileged corporations using the congresses, the presidents and all the alphabet soup agencies to enact and enforce oppressive legislation, regulations, rules, and other enforcement instruments to drive independent competitors from the markets,”

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I had to look up the definition of capitalism just to make sure my understanding of that concept was accurate.  It was.

Capitalism defined by Merriam’s Online

: an economic system characterized by private or corporate ownership of capital goods, by investments that are determined by private decision, and by prices, production, and the distribution of goods that are determined mainly by competition in a free market

While I hear one politician or another extolling the virtues of free markets and while these same corporate hiney huggers along with successive presidents admonishes us that we must participate in the global economy, I find myself wondering just how bad the negative effects of the global economy have to become before someone cries “uncle”!  As in “Sam!”  

CRapitalism defined: More

Energy vs. Environment

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Live link: Horsesavers

by: Frank Mancuso

17% jobless rate! All bets are off. The environment loses. We’re all flying on this airship called Earth trying to survive in a system that must gobble up the resources of the planet to provide for the most people. But provide what?

India and China are American-ising. Rivers are damned, coal is burned, oil fought over. Everyone wants stuff. Stuff creates jobs, so what’s the problem? The more billions of us that are using stuff causes stuff to become harder to get. More

The final phase before the emergence of the North American Union

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The coming collapse of our nation is no accident.

 

What is about to befall us is no accident.  The planning that has gone into the destruction of not only our economy, but our sovereignty as a nation has been carefully staged to make it appear almost accidental and will presented as the only way out.

 

The Security & Prosperity Partnership that erodes our sovereignty is not an accident and neither is the intent to merge the US, Canada and Mexico into one big corporately controlled region which recognizes neither sovereignty nor national identity.

 

To facilitate this coup, successive congresses have ceded their authority not only to the executive, but also to government agencies created for the sole purpose of implementing various aspects of this coup intended to dismantle individual pieces of the plan.  Then over the last eight years, our economy was intentionally brought to the edge of ruin;  an edge that will never see us returned to our former state.

 

The bailout bills, stimulus bills are all focused on maintaining the same institutions and agencies that have created the crisis.  All the admonishments we have been subjected to regarding globalization, free markets, free trade, capitalism and how necessary these things were to a thriving economy have shown themselves to be nothing more than the tools for destroying one economy after another while a select few benefited enormously at everyone else’s expense.  Again, this was no accident.

 

If any one of the arguments for the unmitigated greed that has taken place were actually true……why didn’t we, in a free capitalist, free market, free trading, no interference in corporate business……let these businesses go down just like we are letting homeowners and workers?  Just like we are allowing small businesses and enterprises to?

 

While we bail out one corrupt sector after another not one of those concerned politicians offered up the idea of borrowing a trillion dollars to bail out main street.  That would be unconscionable…that would be socialism! Or worse…communism!  But we have no problem with fascism.  We castigate homeowners who overextended themselves, but reward predatory lenders, mismanaged investment companies, banks and insurance companies.  We reward international corporations with multi-billion dollar subsidies and tax credits and breaks while they post billions in corporate profits and then we take part in the social disparaging of those who are on welfare. 

 

We are throwing what will amount to trillions of dollars into the coffers of businesses and individuals who should have been hung publicly for the damage they have done to our nation, but who were instead rewarded for their greed.  And, to add insult to injury….they expect us to finance this debt.  But I have these questions:

 

Why are these companies who got these funds not held liable for repaying them?  If throwing this money into them will make them profitable again….why can’t they repay these loans from their profits rather than taxpayers? 

 

Not one of those individuals who created this supposed crisis has had to give up anything….not assets, homes, cars, yachts, jets….nothing. 

 

On the other hand……how many of you got to keep your home, cars, or anything else you had when you realized you had hit bottom?  Did anyone offer to bail you out?  To borrow money and hold your neighbors responsible for paying it back?

 

Our government as a whole has acted not to protect us, but instead aligned itself with those who they believe will substantially reward them for their efforts.

 

In order for the North American Union to replace the sovereign United States, we had to be destroyed….otherwise we would never accept the conversion.  We have to lose our jobs, our homes, and soon our access to food.  We have to be humbled, made submissive and threatened with our very existence.  We have to have everything we have known, everything we believed in; even our freedom taken from us to make us quietly accept the conversion from free sovereign nation to one of corporate controlled region.

 

We are on the verge of collapse and life as we have known it is about to change radically.  At some point, when enough of us are hungry, homeless and without hope the political corporate monster that we have allowed the government to morph into will show itself.  Those who speak for this monster will start out by saying, ….”We have to act quickly to protect the American people…..at this point I would suggest you make the decision whether to try to run or to stand up and fight for what is rightfully yours.

 

© 2009 Marti Oakley

 

 

 

Capitalism’s Self-inflicted Apocalypse

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http://informationclearinghouse.info/article21957.htm

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By Michael Parenti

February 10, 2009 “Information Clearinghouse” — After the overthrow of communist governments in Eastern Europe, capitalism was paraded as the indomitable system that brings prosperity and democracy, the system that would prevail unto the end of history.

The present economic crisis, however, has convinced even some prominent free-marketeers that something is gravely amiss. Truth be told, capitalism has yet to come to terms with several historical forces that cause it endless trouble: democracy, prosperity, and capitalism itself, the very entities that capitalist rulers claim to be fostering.

Plutocracy vs. Democracy

Let us consider democracy first. In the United States we hear that capitalism is wedded to democracy, hence the phrase, “capitalist democracies.” In fact, throughout our history there has been a largely antagonistic relationship between democracy and capital concentration. Some eighty years ago Supreme Court Justice Louis Brandeis commented, “We can have democracy in this country, or we can have great wealth concentrated in the hands of a few, but we can’t have both.” Moneyed interests have been opponents not proponents of democracy.

The Constitution itself was fashioned by affluent gentlemen who gathered in Philadelphia in 1787 to repeatedly warn of the baneful and dangerous leveling effects of democracy. The document they cobbled together was far from democratic, being shackled with checks, vetoes, and requirements for artificial super majorities, a system designed to blunt the impact of popular demands.

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Ron Paul on ending the Federal Reserve

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The Austrians Were Right


                                              by Congressman Ron Paul

Congressman Ron Paul speaking before the U.S. House of Representatives.

November 20, 2008

PLEASE FORWARD


Madame Speaker, many Americans are hoping the new administration will solve the economic problems we face. That’s not likely to happen, because the economic advisors to the new President have no more understanding of how to get us out of this mess than previous administrations and Congresses understood how the crisis was brought about in the first place.
economics. For the last 80 years, the legislative, judiciary and executive branches of our government have been totally influenced by Keynesian economics. If they had had any understanding of the Austrian economic explanation of the business cycle, they would have never permitted the dangerous bubbles that always lead to painful corrections.
At least 90% of the cause for the financial crisis can be laid at the doorstep of the Federal Reserve. It is the manipulation of credit, the money supply, and interest rates that caused the various bubbles to form. Congress added fuel to the fire by various programs and institutions like the Community Reinvestment Act, Fannie Mae and Freddie Mac, FDIC, and HUD mandates, which were all backed up by aggressive court rulings.
It is unimaginable that Congress could be so derelict in its duty. It does nothing but condone the arrogance of the Fed in its refusal to tell us where the $2 trillion has gone. All Members of Congress and all Americans should be outraged that conditions could deteriorate to this degree. It’s no wonder that a large and growing number of Americans are now demanding an end to the Fed.

The Federal Reserve created our problem, yet it manages to gain even more power in the socialization of the entire financial system. The whole bailout process this past year was characterized by no oversight, no limits, no concerns, no understanding, and no common sense.
All the programs since the Depression were meant to prevent recessions and depressions. Yet all that was done was to plant the seeds of the greatest financial bubble in all history. Because of this lack of understanding, the stage is now set for massive nationalization of the financial system and quite likely the means of production.

Although it is obvious that the Keynesians were all wrong and interventionism and central economic planning don’t work, whom are we listening to for advice on getting us out of this mess?
Unfortunately, it’s the Keynesians, the socialists, and big-government proponents.

Who’s being ignored? The Austrian free-market economists – the very ones who predicted not only the Great Depression, but the calamity we’re dealing with today. If the crisis was predictable and is explainable, why did no one listen? It’s because too many politicians believed that a free lunch was possible and a new economic paradigm had arrived. But we’ve heard that one before –like the philosopher’ s stone that could turn lead into gold. Prosperity without work is a dream of the ages.

Except for a rare few, Members of Congress are unaware of Austrian Free Market

Today, a major economic crisis is unfolding. New government programs are started daily, and future plans are being made for even more. All are based on the belief that we’re in this mess because free-market capitalism and sound money failed. The obsession is with more spending, bailouts of bad investments, more debt, and further dollar debasement. Many are saying we need an international answer to our problems with the establishment of a world central bank and a single fiat reserve currency. These suggestions are merely more of the same policies that created our mess and are doomed to fail.

The Fed has now doled out close to $2 trillion in subsidized loans to troubled banks and other financial institutions. The Federal Reserve and Treasury constantly brag about the need for “transparency” and “oversight,” but it’s all just talk – they want none of it. They want secrecy while the privileged are rescued at the expense of the middle class.

Similar mistakes were made in the 1930s and ushered in the age of the New Deal, the Fair Deal, the Great Society and the supply-siders who convinced conservatives that deficits didn’t really matter after all, since they were anxious to finance a very expensive deficit-financed American empire.

 


Over and above this are those who understand that political power is controlled by those who control the money supply. Liberals and conservatives, Republicans and Democrats came to believe, as they were taught in our universities, that deficits don’t matter and that Federal Reserve accommodation by monetizing debt is legitimate and never harmful. The truth is otherwise. Central economic planning is always harmful. Inflating the money supply and purposely devaluing the dollar is always painful and dangerous.payment. Raising taxes would reveal the true cost of big government, and the people would revolt. But the piper will be paid, and that’s what this crisis is all about.If it goes too far and the wild extravagance is not arrested, runaway inflation will result, and an entirely new currency will be required to restore growth and reasonable political stability.

The choice we face is ominous: We either accept world-wide authoritarian government holding together a flawed system, OR we restore the principles of the Constitution, limit government power, restore commodity money without a Federal Reserve system, reject world government, and promote the cause of peace by protecting liberty equally for all persons. Freedom is the answer.

The policies of big-government proponents are running out of steam. Their policies have failed and will continue to fail. Merely doing more of what caused the crisis can hardly provide a solution.

The good news is that Austrian economists are gaining more acceptance every day and have a greater chance of influencing our future than they’ve had for a long time.

The basic problem is that proponents of big government require a central bank in order to surreptitiously pay bills without direct taxation. Printing needed money delays the

There are limits. A country cannot forever depend on a central bank to keep the economy afloat and the currency functionable through constant acceleration of money supply growth. Eventually the laws of economics will overrule the politicians, the bureaucrats and the central bankers. The system will fail to respond unless the excess debt and mal-investment is liquidated.


Ron Paul


PLEASE WAKE THE HELL UP AMERICA!

 

The Curse of Capitalism

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by Alan Adaschik

 

Government is government and business is business and the two are very different from each other.  A business exists solely to earn profits for its owners.  On the other hand, a prime function of government is to keep the playing field level between citizens so that no one person or groups of people can take unfair advantage of others.  This being the case, it should be clear that the goals of government and corporations are at cross purposes with each other.  A business earns profits by exploiting its environment and seeking advantage in the market place.  In contrast, governments exist to ensure that a business does not wrongfully exploit the environment, take unfair advantage of their competitors or customers, and operates in a manner that is beneficial and positive for all concerned.

 

It should be obvious that a business will maximize profits if it is able to control the environment within which it operates.  Unfortunately, it is also obvious that the best ways of doing this is to influence and control the government which is supposed to be controlling it.  And there’s the rub.  When a corporation is able to control its government, corruption is the order of the day and instead of properly performing one of its prime functions, the government in question, instead, aids and abets the corporation so it can wrongfully have its way with us.  So it is in the United States today.  Corporations have such a lock upon our government and the other institutions of our society that they are free to plunder us and our national resources at will.  The situation has progressed to the point where capitalism, the goose that laid the golden egg for the people of this nation, has now become a curse upon us.  Capitalists are now our masters instead of being our servants and without any controls upon them they are self-serving masters at best.

 

Validation of the foregoing is clearly evident all around us.  These include a revolving door between corporations and their controlling governmental agencies, a Medicare Prescription Drug Program that benefits drug companies more that it does program participants, a government which is hostile to environmental concerns and global warming issues, multi-billion dollar corporate contracts awarded on a no bid basis without any semblance of control or accountability, a government which totally ignores over-population issues, a monetary system primarily beneficial to its owners that is bankrupting our Nation, a government that is flooding the nation with immigrants and only pays lip service to the issue of illegal immigration, a government that is dissolving our borders and which places trade issues before and above our sovereignty, energy policies that favor and enrich energy companies, a flagrant de-regulation of corporations in all sectors of our economy, the wonton and unbridled privitation of traditional governmental functions including those of our armed forces, and the creation of a New World Order where corporations rule and hold ultimate authority over our government and economic well being.

 

As a people, this is where we are today and this did not happen to us by accident.  We lost control of our lives and government in 1913 with passage of the Federal Reserve Act which created the Federal Reserve Bank, a privately owned corporation which was wrongfully given the power to earn profits by loaning us our own money at interest.  Because of this, Americans were forced to pay an income tax on the fruits of their labor which helped make the robber baron bankers rich beyond their wildest dreams.  This wrongfully acquired wealth gave rise to the New World Order and its stepchild, the World Trade Organization (WTO).  Incredibly, this criminal organization, by way of a simple unconstitutional legislative act, was given authority over and the power to overrule, our Congress, President, and our Supreme Court.

 

This last statement is not speculation or fantasy but, instead, a cold hard fact substantiated by the GATT accord which states that, “Each member (of the WTO) shall ensure the conformity of its laws, regulations, and administrative procedures with its obligations as provided (for) in the annexed Agreements”.  The annexed Agreements establish a procedure whereby the Ruling Panels of the WTO will be the final authority over all disputes between members.  At first glance, this seems innocent enough but the true power and reach of the WTO becomes evident when one realizes that almost everything that happens within the borders of a nation affects the costs of goods sold and traded in world markets.  And this includes environmental laws, laws concerning workers and their well being, laws affecting interstate commerce, etc, etc.  In short, the WTO is not just a world trade organization but instead, a World Government which over time, will grow in power and control such that national origin will have little meaning other than to describe the area of the world within which a person is born.  National differences and identity will become non-existent and meaningless.

 

The establishment of the WTO and other sovereignty busting treaties such as NAFTA and CAFTA opened up the world for American corporations and predictable, they moved their operations overseas in droves where they could take advantage of lax environmental laws and the cheap labor of third world countries.  Corporate flight progressed to such a degree that the United States is no longer an industrial nation and has now what is euphemistically called a consumer economy.  This is bad enough, but concurrent with the plunder of the industrial base of this nation, corporate influence brought on a wave deregulation which, unfortunately, included our financial and banking institutions.  Predictably, the loosening of financial controls brought on a housing boom as speculators kited the value of property and homes throughout the nation.  This largess eventually resulted in the mortgage meltdown and market crash we presently are in.  This is where America finds itself today; woefully in debt and going deeper in dept with each passing day, in a recession with no end or bottom in sight, fighting a debilitating two front war of imperialism to no ones benefit but the terrorists, and dragging the rest of the world down into the cesspool we created or more correctly, the cesspool created by the New World Order and the corporate moguls who foolishly and self-servingly thought that a return to the wild west days of the early industrial revolution was the best way to bring freedom and prosperity to the world.

 

Many years ago, we used to subscribe to the notion of enlightened self-interest as being the fundamental driving force behind our capitalist economic system.  However, of late we have forgotten the adage that power corrupts and absolute power corrupts absolutely.  We also forgot that man is essentially a greed driven animal and if given the power to control his own economic environment, greed will become dominant at the expense of what is right, moral, reasonable, correct, proper, and/or enlightened.  With the demise of unions, Government was the only remaining entity that could possibly moderate and control the excesses of corporations and the unfortunate truth of the matter is that corporations, through greed, petty self-interest, and the power of the almighty dollar have rendered our government useless and ineffectual for this purpose.  The situation has progressed to the point where our government is no longer our government.  Instead, it is a tool used by corporations and the New World Order to keep us docile and compliant while they have their way with us.

 

Now that the inevitable collapse has come, everyone, including the corporations who engineered this mess, is calling upon government to step in and save us.  How wonderful!  Our industrial base is gone, inflation and war has sapped our savings, retirement funds, and purchasing power and our government in a final act of stupidity and senselessness, elects to bail out our failed banking industry by buying up its bad debt.  Doesn’t anyone in government realize that it is using fiat money to buy up debt that was created by the banks with the stroke of a pen?  Unconscionable, borrowing and debt brought on this crisis and to address it, our government decides to borrow more and put us further into debt so financial institutions will once again begin to loan people money they do not have in the first place.  And then on top of all this, we are expected to spend more money we do not have to stimulate the economy when everything spent eventually ends up in the hands of foreign corporations.  Truly, confidence in our government and our financial institutions is what is needed to get us out of this mess, but under our present circumstances, any citizen who has confidence in our government and the financial institutions which rule us is so out of touch with reality that they are certifiably insane.

 

In 1913, our government, in violation of our Constitution, created the Federal Reserve Bank and gave corporations control of our government.  We are now experiencing the inevitable fruits of this New World Order; ineffectual and dysfunctional government, gross and flagrant corruption of all the institutions of our society, dissolution of our borders, collapse of our monetary system, the plundering of our wealth and resources, and the robbing of our rights, heritage, and freedom.  And now to save us, our government has been blackmailed into rewarding those who did this to us by using our money to buy up their mistakes.

 

We, as a people, must do everything possible to restore our Republic and once again become a free and independent nation.  To accomplish this, the first step we should take is to repeal the Federal Reserve Act and take back control of our money supply and economy.  In conjunction with this, GATT, NAFTA, and CAFTA should be repealed and all banks associated with the Federal Reserves System nationalized.  Our dept to the Federal Reserve Bank and foreign interests should be declared null and void and all foreign aid should immediately cease.  We should then close all our overseas military bases and bring our troops to help protect and rebuild this Nation.  Finally, criminal proceeding should be brought against those who engineered our financial collapse and turned our government into a criminal enterprise.

 

A new beginning as described above is the only thing that will restore confidence in our government and save us and the rest of the world from the horrible fate which a fractional reserve banking system has imposed upon us.  To those who decry this as being Socialism, I say that ridding the world of Fascism is not Socialism.  Furthermore, there is nothing Socialistic about our government running and controlling our banking and financial institutions in keeping with the Constitution as the Founding Fathers intended.

 

America, wake up!  It is already too late for an easy solution.  Soon, it will be too late for any solution.

 

To validate the conclusions and statements made in this essay click on and read any of the following articles all of which can be found on the website of The Constitution forum at:  http://constitutionforum.us/

 

                        The New World Order – Friend or Foe?

 

 

                        When Corporations Rule

 

                        The Economics of Disaster

 

                        Let’s Fire Our Government

 

 http://constitutionforum.us/

Alan Adaschik

Economists Against The Paulson Plan

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Economists Against The Paulson Plan

 

To the Speaker of the House of Representatives and the President pro tempore of the Senate:

 

26/09/09 As economists, we want to express to Congress our great concern for the plan proposed by Treasury Secretary Paulson to deal with the financial crisis. We are well aware of the difficulty of the current financial situation and we agree with the need for bold action to ensure that the financial system continues to function. We see three fatal pitfalls in the currently proposed plan:

 

1) Its fairness. The plan is a subsidy to investors at taxpayers’ expense.

Investors who took risks to earn profits must also bear the losses.  Not every business failure carries systemic risk. The government can ensure a well-functioning financial industry, able to make new loans to creditworthy borrowers, without bailing out particular investors and institutions whose choices proved unwise.

 

2) Its ambiguity. Neither the mission of the new agency nor its oversight are clear. If  taxpayers are to buy illiquid and opaque assets from troubled sellers, the terms, occasions, and methods of such purchases must be crystal clear ahead of time and carefully monitored afterwards.

 

3) Its long-term effects.  If the plan is enacted, its effects will be with us for a generation. For all their recent troubles, America’s dynamic and innovative private capital markets have brought the nation unparalleled prosperity.  Fundamentally weakening those markets in order to calm short-run disruptions is desperately short-sighted.

 

For these reasons we ask Congress not to rush, to hold appropriate hearings, and to carefully consider the right course of action, and to wisely determine the future of the financial industry and the U.S. economy for years to come.

 

 

 

Signed (updated at 9/25/2008 8:30AM CT)

 

Acemoglu Daron (Massachussets Institute of Technology) Adler Michael (Columbia University) Admati Anat R. (Stanford University) Alexis Marcus (Northwestern University) Alvarez Fernando (University of Chicago) Andersen Torben (Northwestern University) Baliga Sandeep (Northwestern University) Banerjee Abhijit V. (Massachussets Institute of Technology) Barankay Iwan (University of Pennsylvania) Barry Brian (University of Chicago) Bartkus James R. (Xavier University of Louisiana) Becker Charles M. (Duke University) Becker Robert A. (Indiana University) Beim David (Columbia University) Berk Jonathan (Stanford University) Bisin Alberto (New York University) Bittlingmayer George (University of Kansas) Boldrin Michele (Washington University) Brooks Taggert J. (University of Wisconsin) Brynjolfsson Erik (Massachusetts Institute of Technology) Buera Francisco J. (UCLA) Camp Mary Elizabeth (Indiana University) Carmel Jonathan (University of Michigan) Carroll Christopher (Johns Hopkins University) Cassar Gavin (University of Pennsylvania) Chaney Thomas (University of Chicago) Chari Varadarajan V. (University of Minnesota) Chauvin Keith W. (University of Kansas) Chintagunta Pradeep K. (University of Chicago) Christiano Lawrence J. (Northwestern University) Cochrane John (University of Chicago) Coleman John (Duke University) Constantinides George M. (University of Chicago) Crain Robert (UC Berkeley) Culp Christopher (University of Chicago) Da Zhi (University of Notre Dame) Davis Morris (University of Wisconsin) De Marzo Peter (Stanford University) Dubé Jean-Pierre H. (University of Chicago) Edlin Aaron (UC Berkeley) Eichenbaum Martin (Northwestern University) Ely Jeffrey (Northwestern University) Eraslan Hülya K. K.(Johns Hopkins University) Faulhaber Gerald (University of Pennsylvania) Feldmann Sven (University of Melbourne) Fernandez-Villaverde Jesus (University of Pennsylvania) Fohlin Caroline (Johns Hopkins University) Fox Jeremy T. (University of Chicago) Frank Murray Z.(University of Minnesota) Frenzen Jonathan (University of Chicago) Fuchs William (University of Chicago) Fudenberg Drew (Harvard University) Gabaix Xavier (New York University) Gao Paul (Notre Dame University) Garicano Luis (University of Chicago) Gerakos Joseph J. (University of Chicago) Gibbs Michael (University of Chicago) Glomm Gerhard (Indiana University) Goettler Ron (University of Chicago) Goldin Claudia (Harvard University) Gordon Robert J. (Northwestern University) Greenstone Michael (Massachusetts Institute of Technology) Guadalupe Maria (Columbia University) Guerrieri Veronica (University of Chicago) Hagerty Kathleen (Northwestern University) Hamada Robert S. (University of Chicago) Hansen Lars (University of Chicago) Harris Milton (University of Chicago) Hart Oliver (Harvard University) Hazlett Thomas W. (George Mason University) Heaton John (University of Chicago) Heckman James (University of Chicago – Nobel Laureate) Henderson David R. (Hoover Institution) Henisz, Witold (University of Pennsylvania) Hertzberg Andrew (Columbia University) Hite Gailen (Columbia University) Hitsch Günter J. (University of Chicago) Hodrick Robert J. (Columbia University) Hopenhayn Hugo (UCLA) Hurst Erik (University of Chicago) Imrohoroglu Ayse (University of Southern California) Isakson Hans (University of Northern Iowa) Israel Ronen (London Business School) Jaffee Dwight M. (UC Berkeley) Jagannathan Ravi (Northwestern University) Jenter Dirk (Stanford University) Jones Charles M. (Columbia Business School) Kaboski Joseph P. (Ohio State University) Kahn Matthew (UCLA) Kaplan Ethan (Stockholm University) Karolyi, Andrew (Ohio State University) Kashyap Anil (University of Chicago) Keim Donald B (University of Pennsylvania) Ketkar Suhas L (Vanderbilt University) Kiesling Lynne (Northwestern University) Klenow Pete (Stanford University) Koch Paul (University of Kansas) Kocherlakota Narayana (University of Minnesota) Koijen Ralph S.J. (University of Chicago) Kondo Jiro (Northwestern University) Korteweg Arthur (Stanford University) Kortum Samuel (University of Chicago) Krueger Dirk (University of Pennsylvania) Ledesma Patricia (Northwestern University) Lee Lung-fei (Ohio State University) Leeper Eric M. (Indiana University) Leuz Christian (University of Chicago) Levine David I.(UC Berkeley) Levine David K.(Washington University) Levy David M. (George Mason University) Linnainmaa Juhani (University of Chicago) Lott John R.  Jr. (University of Maryland) Lucas Robert (University of Chicago – Nobel Laureate) Luttmer Erzo G.J. (University of Minnesota) Manski Charles F. (Northwestern University) Martin Ian (Stanford University) Mayer Christopher (Columbia University) Mazzeo Michael (Northwestern University) McDonald Robert (Northwestern University) Meadow Scott F. (University of Chicago) Mehra Rajnish (UC Santa Barbara) Mian Atif (University of Chicago) Middlebrook Art (University of Chicago) Miguel Edward (UC Berkeley) Miravete Eugenio J. (University of Texas at Austin) Miron Jeffrey (Harvard University) Moretti Enrico (UC Berkeley) Moriguchi Chiaki (Northwestern University) Moro Andrea (Vanderbilt University) Morse Adair (University of Chicago) Mortensen Dale T. (Northwestern University) Mortimer Julie Holland (Harvard University) Muralidharan Karthik (UC San Diego) Nanda Dhananjay  (University of Miami) Nevo Aviv (Northwestern University) Ohanian Lee (UCLA) Pagliari Joseph (University of Chicago) Papanikolaou Dimitris (Northwestern University) Parker Jonathan (Northwestern University) Paul Evans (Ohio State University) Pejovich Svetozar (Steve) (Texas A&M University) Peltzman Sam (University of Chicago) Perri Fabrizio (University of Minnesota) Phelan Christopher (University of Minnesota) Piazzesi Monika (Stanford University) Piskorski Tomasz (Columbia University) Rampini Adriano (Duke University) Reagan Patricia (Ohio State University) Reich Michael (UC Berkeley) Reuben Ernesto (Northwestern University) Roberts Michael (University of Pennsylvania) Robinson David (Duke University) Rogers Michele (Northwestern University) Rotella Elyce (Indiana University) Ruud Paul (Vassar College) Safford Sean (University of Chicago) Sandbu Martin E. (University of Pennsylvania) Sapienza Paola (Northwestern University) Savor Pavel (University of Pennsylvania) Scharfstein David (Harvard University) Seim Katja (University of Pennsylvania) Seru Amit (University of Chicago) Shang-Jin Wei (Columbia University) Shimer Robert (University of Chicago) Shore Stephen H. (Johns Hopkins University) Siegel Ron (Northwestern University) Smith David C. (University of Virginia) Smith Vernon L.(Chapman University- Nobel Laureate) Sorensen Morten (Columbia University) Spiegel Matthew (Yale University) Stevenson Betsey (University of Pennsylvania) Stokey Nancy (University of Chicago) Strahan Philip (Boston College) Strebulaev Ilya (Stanford University) Sufi Amir (University of Chicago) Tabarrok Alex (George Mason University) Taylor Alan M. (UC Davis) Thompson Tim (Northwestern University) Tschoegl Adrian E. (University of Pennsylvania) Uhlig Harald (University of Chicago) Ulrich, Maxim (Columbia University) Van Buskirk Andrew (University of Chicago) Veronesi Pietro (University of Chicago) Vissing-Jorgensen Annette (Northwestern University) Wacziarg Romain (UCLA) Weill Pierre-Olivier (UCLA) Williamson Samuel H. (Miami University) Witte Mark (Northwestern University) Wolfers Justin (University of Pennsylvania) Woutersen Tiemen (Johns Hopkins University) Zingales Luigi (University of Chicago) Zitzewitz Eric (Dartmouth College)

 

 

 

 

 

Regulation in FantasyLand

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The general co-chairman of John McCain’s presidential campaign, former Sen. Phil Gramm (R-Texas), led the charge in 1999 to repeal a Depression-era banking regulation law that Democrat Barack Obama claimed on Thursday contributed significantly to today’s economic turmoil.

http://www.politico.com/news/stories/0308/9246.html

 

Let me see if I have this right.  On December 15, 2000, as part of a decades-long anti-regulatory crusade, Former Senator Phil Gramm, representing the “foxes,” slipped a 262-page measure called the Commodity Futures Modernization Act into the omnibus spending bill.

 

Years of unceasing effort to beat down Depression-era firewalls between commercial banks, investment banks, insurance companies, and securities firms had come to a successful conclusion, and set off a wave of merger mania with a return to the halcyon pre-Depression days of unregulated and unfettered manipulation of banking and the stock market.

 

The foxes had succeeded in defeating most of the protections the “farmer” (responsible government) had erected around the “henhouse” (our much-vaunted capitalism) in an effort to prevent the abuses that resulted in the Great Depression.

 

Not to push the allegory too hard, now all of those chickens have come home to roost.

 

And, the Administration wants to put the foxes in charge of 700 billion dollars ($7,390 per U.S. family) to save the henhouse from total collapse.

 

YOU HAVE GOT TO BE KIDDING ME!

Nationalizing the losses…Privatizing the profits

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Here we sit like the proverbial ducks waiting to be picked off by a government so totally involved in the current fraud and financial meltdown that its first order of business is to try and figure out a way to shift the blame.  How is it that Bernanke didn’t know, Paulson didn’t know, the SEC didn’t know, the House and Senate finance committees didn’t know…in fact no one that should have known seemed to be sounding the alarm that things were going very wrong in this so-called free market?  How could none of these people have known this would happen?  Everyone out here in taxpayer land who was paying any attention at all knew that this day would come.

 

After more than twenty years of hearing how supply side economics, trickle down economics, free markets and unregulated free trade were going to produce a booming economy, we see that the only thing that exploded was the financial markets.  Wall Street, gigantic mortgage and insurance companies all imploding under the weight of corruption, executive abuse, and less than ethical business practices has finally succumbed to its own misbegotten theories on economics. 

 

While free trade and no oversight and even less regulation may have looked good on paper, not one of those economic theorists gave a moments thought to the greed, the elitism and the inevitable downward spiral brought on by individuals easily consumed by corruption which is exactly what no oversight and deregulation brings on.  The fact of the matter is, that without effective oversight and regulations these individuals who operated these companies did the inevitable.   In this case there will be no punishment of any consequence.

 

And here is how supply side, free market economics trickle down for us on the receiving end of these policies.

 

  • Not one CEO who cooked the books, or who failed to file necessary corporate statements in the last five years will be forced to forfeit the millions in unearned executive bonuses, perks and pay. (Some surpassing the 90million mark)

 

  • Not one company or corporation will be held liable or accountable for its corruption and mismanagement.

 

  • US taxpayers will be assuming the burden of bad debt…. NO ONE buys bad debt except a fool.

 

  • Our taxes will explode regardless of who takes the presidency as a result of what has happened in the last few weeks.

 

  • The wealthiest 3% will still enjoy their special no-tax to speak of plan, while the rest of us labor under a tax burden so huge we can never pay it off. 

 

I find it odd that the greatest promoters of this great American giveaway known as free market capitalism have been quite silent this last week.  Those champions of anything to make a buck no matter who gets hurt in the process seem to have gone mute.

 

I found myself wondering where were, they?  Why weren’t they out there shooting off their mouths about letting the market work? Why weren’t they advocating loud and clear these financial institutions should be allowed to fail?  Isn’t that what happens in free market capitalism without oversight and regulation?  Apparently not.  Obviously the only time these free market capitalists want no interference is when they are making a huge profit.  When they are losing their collective asses they run to their buddies in our government and shift their losses to us. 

 

Why are we being forced to nationalize the losses incurred by privately owned

corporations that privatized their created profits?

 

I don’t buy the argument that it would destabilize markets around the world.  All that means to me is that the selling off of America is far greater than we are lead to believe and our debt being carried by countries such as China is so huge that not bailing out these companies would expose the extent of that debt.

 

Its time for all those who still cling to this unregulated free market theory admit that it has done nothing but destroy our economy, devastated the middle class, and brought us to the brink of financial ruin. 

 

Personally, I believe the assets of all the party’s involved should be seized and the proceeds used to shore up these companies if that actually needs to be done.  Then all the house and senate members who are putting this bailout plan together should forfeit their salaries and any other assets of value for the same purpose.  I also believe that the massive fortunes of the Bush family, and the Cheney’s should be seized and used to offset this monstrous debt; after all they were two of the greatest promoters of free market capitalism and both profited immeasurably from it while American families lost their jobs and their homes.

 

There are lots of places these people could go to get the financing needed to bail out these companies.  The only reason we are being saddled with it, is because we are the easiest marks.

 

© 2008 Marti Oakley

 

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