TruthSavvy. - Capitalism

Does Wall Street's 'Free Market' Promote Real Freedom?

Dr. B. — Sat, 29 May 2010 15:26:07 +0000

Free markets and their attentive politicians are always serving up something new. May’s service — an 872 point Dow Jones blowout — clearly dampens recovery hopes. Is it right that financial markets impact the underlying economy so remarkably? Could a different financial architecture help mitigate this problem — an architecture that does not shortchange honorable merit when it comes to financial rewards?

marketwatch.com article: "Free-market forces have politicians on the run", by David Callaway

EU Has Greece, US Has California; Will We Learn Perils Of Moral Hazard?

Dr. B. — Sat, 15 May 2010 16:08:16 +0000

How much time will elapse until California becomes America’s Greece? If the EU thinks it necessary to bail out one of Europe’s most profligate state economies, will the U.S. face the same perceived necessity with one of our wayward state governments?

marketwatch.com article: "Greek debt bailout makes no sense in any language", by Jon Markman

Should Wall Street Follow Tiger Woods And Apologize For Its Immorality?

Dr. B. — Sat, 20 Feb 2010 04:19:13 +0000

Wall Street could learn a few things from the Tiger Woods apology on February 19. Wood’s detailed apology is an important step toward a gradual rehabilitation of his image. Nevertheless, the healing will not be easy. Nor should it be. People who commit grand larceny often receive heavy fines and spend considerable time in prison. Woods faces the prison of public opinion as well as the loss of endorsement revenue. He stole a lot from his wife, kids and supporters. He is deserving of his reward.

marketwatch.com article: "Tiger Woods blames the Media, of course.", by Jon Friedman

Reasons For Optimism In The Face Of A Future Economic Crisis

Dr. B. — Wed, 21 Oct 2009 06:00:00 +0000

Dr. B. Responds to Paul Farrell's Marketwatch.com article titled "America has lost its soul and collapse is inevitable" by not only analyzing the likelihood of Farrell's claims, but also sharing real reasons for discerning readers to be optimistic about the future that follows.

Has America lost its soul? Is America too immoral and shortsighted to allow prudent capitalism to work properly? (Yes.) Is the Canadian hedge fund manager, Erick Sprott correct that the U.S. government is now a “dead man walking,” with central bank intervention the main dynamic that allows the U.S. Treasury to roll over government debt at low interest rates? (Marketwatch, Oct. 20, 2009).

marketwatch.com article: "America has lost its soul and collapse is inevitable", by Paul Farrell

What Does The Return Of Dow 10,000 Really Mean?

Dr. B. — Thu, 15 Oct 2009 06:00:00 +0000

In this painstakingly detailed and annotated analysis, Dr. B. shows why he predicted that the Dow would return to at least 10,000 back in March 2009, how it has come to pass, and what the future may hold as a result.

It pays to look at where we’ve been if we’re to understand where we’re going. The U.S. stock market bottomed in the first week of March 2009, beginning a vigorous bounce in the month’s second week. By late March a breeching of the midterm downtrend line suggested significant changes in store. Nevertheless, most members of the general public thought the March rally was nothing more than a dead cat bounce.

marketwatch.com article: "Dow at 10,000? Wake me up when its 14,000", by David Callaway

Wall Street Gets Protection From Itself In Proposed New Rules

Dr. B. — Thu, 24 Sep 2009 06:00:00 +0000

It is important for Americans to discern the difference between what the Obama administration says and Wall Street hears. Dr. B. helps us understand that while new financial regulations sound good on the surface, they really serve to preserve Wall Street's dominance at the expense of the American people.

Purportedly, President Obama may attempt to shift the focus of the G20 summit from banking improprieties to a rebalancing of trade. While a restructuring of trade is important, Obama is out-of-step with the American public if he diverts attention from the need to cap bank bonuses, heighten scrutiny of hedge funds, and corral the shadow banking system. Recent reports of a power regrowth in the investment banking sector lend support to this concern.

marketwatch.com article: "G20 to stretch to find common ground", by Greg Robb & William Watts

Proposed Regulatory Reforms Are Just Window Dressing, But Could Be So Much More

Dr. B. — Wed, 16 Sep 2009 06:00:00 +0000

Dr. B. compares Teddy Roosevelt's bold and even-handed management of a 1902 economic crisis against the unfortunate mishandling of economic issues by all the presidents from Reagan through Obama. President Obama would do well to use his position to make real, systemic changes, but he would need the motivation of what is unfortunately a largely uneducated, distracted public.

In September, 1901, Vice-President Teddy Roosevelt uttered his memorable adage, “speak softly but carry a big stick.” Shortly thereafter, President McKinley was assassinated by an anarchist, making TR at age 42 America’s 26th president. As president he failed to speak softly at times but did carry an executive bludgeon. His legacy still shines because he swatted at the insolence of his own party as well as Democratic interests. Our current president would do well to consider Teddy Roosevelt’s example in matters of economic justice.

marketwatch.com article: "Obama vs. Wall Street by the numbers", by David Weidner

Obama's Financial Regulatory Reforms Should Include Return To True Capitalism

Dr. B. — Sun, 13 Sep 2009 06:00:00 +0000

In this important, foundational article, Dr. B. contrasts the difference between America's warped flavor of capitalism -- one based on price speculation -- with a much better form of capitalism that he calls the "public participation" model. Calls for regulatory reform will fall far short if changes to the underlying architecture are not a part of the plan.

President Obama's financial regulatory reforms will bring positive, meaningful changes to the way Wall Street does business. For this he should be commended. Nevertheless, the reforms fail to do enough, are not suitably instrumented, and sidestep systemic change. The reforms serve to affirm Wall Street's position, increasing the odds that Wall Street's grip over America will continue. This means more elitism and less true justice. The wealth and power gap between working Americans and the privileged elites of Manhattan Island will remain unjustifiably wide.

marketwatch.com article: "Obama plan doesn't solve all the problems", by Rex Nutting (06/17/2009)

How About A Town Meeting To Challenge Goldman Sachs?

Dr. B. — Tue, 25 Aug 2009 06:00:00 +0000

Dr. B. makes the case that the United States needs to begin a national dialog on the design of an honorable form of capitalism -- one that reflects the best interests of everyone in the country, and stands against the immoral version that is very evident in the behavior of Goldman Sachs.

We are long overdue for a national town hall meeting on Goldman Sachs — with or without Goldman executives. Wealthy Wall Street elites take for granted a dragon-like right to trample the vast working public. Their right claim is based upon the notion that capitalism gives the massively monied the privilege of shaping financial laws. Injustice to these people means not getting their own way at the expense of nonaligned others. A national town hall is needed to challenge, overcome and replace these distortions of capitalism.

marketwatch.com article: "Goldman’s town hall", by David Weidner.

Focus on Executive Pay Not Enough -- Sweeping Market Reforms Are Needed

Dr. B. — Thu, 14 May 2009 06:00:00 +0000

David Callaway is right: This nation needs more than grilled millionaire on the menu. While intelligent reforms to executive compensation are essential — sweeping reforms and not mere dabbling — we must do more than audit the menu. It is time to reform the discriminatory nature of the meal club as well. Compensation guidelines are not enough. We must alter the means by which investment rewards in public markets are acquired.

marketwatch.com article: "Grilled millionaire back on the menu", by David Callaway