In reality, Wall Street is nothing but a derivatives monster, a black hole of hundreds of trillions of dollars of poisonous derivatives. Total world derivatives are now between $ 1 QUADRILLION (i.e., one thousand trillion) and $ 1.5 quadrillion, and Wall Street represents the lion’s share of this. (We are forced to use estimates because most derivatives are not just unregulated, they are also unreported, so literally nobody knows the exact size of the derivatives bubble.) No money that is put into Wall Street will ever pass through it to benefit anyone else. The Wall Street derivatives black hole is so powerful that it could easily eat the whole earth and the entire solar system, and still be just as bankrupt as it was to start with. Banks like JP Morgan Chase, Citibank, and the Bank of America long ago gave up providing commercial bank services in the form of loans to companies seeking to purchase new plant and equipment for capital investment and job creation. The banks do not discount commercial paper any more. They deal in derivatives and speculation, and little else. A year ago, JP Morgan Chase alone officially had $ 93 TRILLION in derivatives of certain types more than six times the total Gross Domestic Product of the United States, and this is a very low-ball estimate indeed. When they were still investment banks, Goldman Sachs and Morgan Stanley created the Intercontinental Exchange (ICE) in London to facilitate their oil futures speculation; there are indications that Goldman and Morgan between them accounted for almost half of the run-up in the world oil price, meaning in effect that these two criminal organizations were responsible for almost 25% of the total price of oil. This means that about a quarter out of every dollar paid at the gas pump by commuters, cab drivers, and truckers was going to subsidize Goldman Sachs and Morgan Stanley
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{ 7 comments… read them below or add one }
Capitalists are a burden, they are not justifying their existence as the ruling class.
We’ve been looted by these entities for a long time. Blame Congress. Congress has sat on its hands and done nothing about rampant, blatant, admitted fraud in the banking system.
Are they all in bed together? Probably. At least they have been in the past.
Obama wants to Nationalize the banks.
Lenin is the only leader in history to do this.
Stupid politicians are what’s causing the problem. Free markets only work when they are truly free. Everytime some idiot politician (like Blubbering Barney & Partner Chris Dodd) well meaning or not, screw around with existing contracts and other manipulations, they throw things out of balance and we are now living in the results of that.
If the tinkered with the solar system the same way, we would now have a dead planet hurtling through space as a giant meteor.
The truth is the US is technically BANKRUPT as a result of the shenanigans you describe. Get out of the US$ while you still have the chance.
Yes. Until the Gramm-Leach-Bliley Act of 1999, repealed The Glass-Steagall Act of 1933 which prohibited a bank from offering investment, commercial banking, and insurance services we were protected from such crap..
This meant that banks could not play with investors money by shooting craps in exotic markets.
Phil Gramm & his Republican buddies introduced it and Bill Clinton signed it and still defends it.
There are no innocent political parties in this deal.
Very good, I’m impressed. Yes, you are correct. The ONLY solution now is to put the entire bankrupt financial system into receivership and reorganization. We must protect the real banking system; the community banks real people actually use – NOT Wall Street, NOT the parasitic speculators.
After that, we must set about the much more difficult task of rebuilding the PHYSICAL economy, which has been laid waste by decades of unrestrained capitalism. This must begin with water and transport infrastructure, as the world is now facing an acute food and water crisis, in which literally billions will starve if nothing is done.