TruthSavvy. - Banking

What Do Elena Kagan And The European Bailout Have In Common?

Dr. B. — Wed, 12 May 2010 01:25:26 +0000

Dr. B. draws an important link between the recent nomination of Elena Kagan to the United States Supreme Court and the European Union's latest proposal to bail out the debt-ridden Greek economy.

President Obama’s nomination of Elena Kagan to the U.S. Supreme Court is, essentially, the same type of governing act as the EU decision to bail out European banks vulnerable to the Greek crisis. In both instances political leadership serves the interests of financial elites — plutocracy advancing while veiled by supposedly democratic institutions. In both cases the power of government grows as it defends the critical interests of financial policy overlords.

marketwatch.com article: "Bailout across pond will flood Wall Street", by David Weidner

Wall Street Banks: Too Big To Discipline?

Dr. B. — Sat, 23 Jan 2010 07:00:00 +0000

In 2009 the leading issue of moral hazard was “too big to fail.” Not surprisingly, the more things change, the more they stay the same. As the congressional bank hearings of 2010 unfold, the new touchstone of moral hazard is “too big to discipline.” The heads of Morgan Stanley, J.P Morgan and Bank of America argue that they cannot be reproved in practice or disciplined by being broken up because their gargantuan size is necessary for the health of American banking in a global environment. ‘Make us pay, and you’ll pay,’ is their mantra!

marketwatch.com article: "Big bank CEOs admonished for their role in the financial crisis", by Ronald Orol

Free Money From The Federal Reserve Fuels Dangerous New Wall Street Bubble

Dr. B. — Tue, 24 Nov 2009 01:30:34 +0000

Hazardous speculation on Wall Street is growing because of the Federal Reserve's easy money policies. This article provides alternatives to current Fed policies -- alternatives that could help the American economy in coming years.

Is irrational exuberance making a comeback at the Fed’s invitation? Irwin Kellner thinks so, arguing that the “humongous volume” of Fed injected liquidity invites a speculative fever. The Fed’s bogus money has not produced consumer price inflation because the wealthy beneficiaries of the liquidity are keeping it engaged in speculative pursuits, with little trickling down to consumers.

marketwatch.com article: "It's deja vu all over again.", by Irwin Kellner

Write The Truth About Government Financial Recklessness While You Can!

Dr. B. — Fri, 17 Jul 2009 06:00:00 +0000

Dr. B encourages bold, insightful financial reporting as the leading way for Americans to learn how to combat the ongoing erosion of their sovereignty through ongoing multiplication of debt and manipulation of financial markets.

Mass media may have been the weakest link in the American political system until the financial crisis of 2008. Personal observations support this conclusion as well as assessments of discerning scholars like Doris A. Graber (see “Mass Media & American Politics,” 7th edition, 2006). However, the emerging media situation is more complex, with growing evidence that heroic visionaries are writing to greater effect than forked tongue villains or hopelessly compromised media celebrities.

marketwatch.com: "Citi and B of A: what to believe, what not to.", by David Weidner

Mortgage Stimulus Rewards Irresponsibility as Financial Integrity Declines

Dr. B. — Thu, 19 Feb 2009 07:00:00 +0000

Dr. B. urges Americans to 'take the high road', even in a culture of Madoffs, Stanfords, and government 'stimulus' programs that reward irresponsibility. He shows where the current policies will lead, and why we should be optimistic that a better day will come.

Who, if anyone, is surprised that Mr. Stanford’s chapter unfolds in Madoff-ite fashion, politics and all? Who, if anyone, does not expect bailouts and partisan subsidies to continue, with justice thrown to the wind as evidenced in the expanding mortgage subsidy affair?

marketwatch.com article: "FBI locates Stanford in Virginia", by Simon Kennedy & Alistair Barr

Can We Trust The Emerging Government Bank Bailout?

Dr. B. — Mon, 09 Feb 2009 07:00:00 +0000

Dr. B. responds to the ongoing discussions in the Treasury Department about bailouts for the banking sector with a deeper analysis than you'll typically find in other media outlets.

Now we know why no one but the tax-flawed Timothy Geithner would do as the new Secretary of the U.S. Treasury. Ronald Orol’s report contains clues supportive of some observers’ contention that Mr. Geithner is under the influence of power hungry elites. Mr. Geithner’s proposal comes with the same directive as Paulson’s 2008 TARP proposal: We have to act without delay or be sucked into a black hole of collapsing banks and unemployment.

marketwatch.com article: "New bailout may be less attractive to some banks", by Ronald Orol.

Is Bernanke's FED Plan To Continue Bank Bailouts Really The Only Way?

Dr. B. — Wed, 14 Jan 2009 05:00:00 +0000

Federal Reserve Chairman Bernanke claims that banks need more aid if we hope to return to economic growth anytime soon. What he really means is that banks and leveraged investors need inflationary economic growth if they are to get the type of returns that widen the gap between the wealthy and everyone else. This is why Fed governors have been peppering their speeches with concerns about inflation falling below “desirable levels.” What is the desirable level for inflation?

marketwatch.com article: "Bernanke: No 'lasting' recovery without more bank aid", by Greg Robb

What's Wrong With Modern, Centralized Interest Rate Management?

Dr. B. — Thu, 09 Oct 2008 00:00:00 +0000

On the news of the global coordinated interest rate cut, Dr. B. addresses the fundamental problems with the current interest rate environment.

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.

marketwatch article: "Fed, major central banks slash rates in coordinated easing" by William L. Watts