The Market's Upturn Awaits the Public's Capitulation


The essence of the contrarian position that Mark Hulbert advances is that elitist short players on Wall Street will not relinquish their short trades until the advisors for Mom & Pop investors advise them to capitulate and accept their losses. When millions of working class Americans sell their stocks in a desperate panic, that is when the markets will turn, says Hulbert. By design, Ponzi-style markets turn under these conditions because this is the moment where exploitation is maximized for elites.

Is California Truly Too Big to Fail?


If California is too big to let fail, then so is every other state in the Union, since state equality in the Senate is a constitutional construct. If the California governor deserves success in lobbying the U.S. Treasury, then the federal government might as well bail every state (and every state-dependent municipality). This trend — already underway in the financial sector — will lead to the anarchical destruction of justice. When people realize that any hope of economic justice is lost, the American experiment with “free democracy” will die.

Low Interest Rates Should Favor Meritorious Money Use


The globally coordinated interest rate cut today shows the desperation of central bankers in trying to calm market psychology. The rhetoric about inflationary prospects moderating is delusional. While commodity prices are coming down in the short term they will likely reverse in the mid-term, as fundamentals point higher. Furthermore, government bailouts and backstops will lead to higher inflation as will entitlement programs and the alleged need for large military expenditures.

Wall Street Misrepresents Capitalism

Today’s 777 point sell-off in the Dow signals Americans that our capitalism is not properly serving our interests. American capitalism is now an asymmetrical game that benefits elite traders while undermining the common good. People’s retirement savings should not be exposed to the capital destruction that occurs when prices in the “float” fail to provide fair market discovery of real corporate value.

What Warren Buffett Could Have Done


Warren Buffett missed a great legacy opportunity yesterday when he placed a five billion dollar bet on Goldman Sachs. Buffett said he was betting on brains. He said his move was conditioned on his confidence that the 700 billion dollar government bailout would occur. Buffett put more than money on Goldman Sach’s table. He left a cryptic message that Wall Street brains will get the better of the U.S. Congress and the American taxpayer. In less than code language he conveyed his intention to capitalize on any resultant surge in the valuation of investment banks.

A Bailout Alternative: Create New Banks on Main Street


It is time to formulate alternatives to the flawed Paulson plan. Unless superior alternatives take shape soon, the Paulson plan will pass in modified form — the modifications sufficient to preserve Wall Street’s dominance of America’s capital markets. Paulson’s plan will prolong high inflation and lead to a weaker dollar. A weak dollar will produce higher oil prices, which in turn will undercut the economy while debasing the standard of living for most Americans.

Mr. Smith: We Need You!


It is imperative that Americans organize to block the Paulson plan, for it carries a terrible price tag and lasting harm to the public interest. This is our moment to show some "Mr. Smith Goes to Washington" initiative. As Henry Paulson and Ben Bernanke testify before the U.S. Senate today, Americans must rise up to organize protests, marches, and public opinion campaigns against this plan that strikes at America's economic autonomy.

A Benevolent Solution to Resolve the Credit Crisis

Here is the essence of what U.S. Treasury Secretary Henry Paulson SHOULD have said about the bailout today, if he were morally credible: ‘Integral to the financial restructuring will be an improved version of presidential hopeful Donald Trump’s 1999 proposal for a one-time asset tax of 14.25% on estates in excess of ten million dollars. (Trump intended to pay off the national debt which was $5.7 trillion.

The FED's Role: Growth, or Sustainability?

Just over 30 years ago the U.S. Congress gave to the Federal Reserve a mandate to manage the economy so as to get economic growth. This mandate gave the FED an excuse to structure the economy so as to favor those with the most capital. What we need at this juncture in our history is a new and equitable mandate for the FED from a Congress that represents the common good, not an elitist interest.

Does Joseph's Life Have Anything To Teach Us?

Do you want a darn good money story on this historic Wall Street day? I’ve got one. But first, a disclaimer. I’m no fan of mindless religion. The church world is sick, like Wall Street. And the Bible gets twisted regularly by Church Street moguls. Nevertheless, whether one thinks the Bible is God-inspired, silly myth or a thing of mystery, there are a few capitalism stories in the book that say a lot by analogy. So, let's see what we can do with the story of Joseph. Remember, the smart guy in the upscale suit?

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