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IMF blueprint for a global currency – yes really
2010-08-04, Financial Times
Posted: 2010-08-09 10:15:52
http://ftalphaville.ft.com/blog/2010/08/04/306346/imf-blueprint-for-a-global-...

[An] IMF paper [that] first came out in April, 2010, [a]uthored by Reza Moghadam, director of the IMF’s strategy, policy and review department, ... discusses how the IMF sees the International Monetary System evolving after the financial crisis. In the eyes of the IMF ... the best way to ensure the stability of the international monetary system (post crisis) is actually by launching a global currency. And that, the IMF says, is largely because [sovereign nations] cannot be trusted to redistribute surplus reserves, or battle their deficits, themselves. The ongoing buildup of such imbalances, meanwhile, only makes the system increasingly vulnerable to shocks. It’s also a process that’s ultimately unsustainable for all, says the IMF. All in all, the IMF believes there has simply been too much reserve hoarding going on. A global currency makes the most sense, the paper concludes — especially since the SDR [Special Drawing Rights] is currently just an accounting tool that draws on the freely usable currencies of member states, not an actual currency itself.

Note: For key news articles on the global financial crisis to which this IMF report is responding, click here.

China rating agency condemns rivals
2010-07-21, Financial Times
Posted: 2010-08-09 10:13:00
http://www.ft.com/cms/s/0/5632a0b8-94b7-11df-b90e-00144feab49a.html

The head of China’s largest credit rating agency has slammed his western counterparts for causing the global financial crisis and said that as the world’s largest creditor nation China should have a bigger say in how governments and their debt are rated. “The western rating agencies are politicised and highly ideological and they do not adhere to objective standards,” Guan Jianzhong, chairman of Dagong Global Credit Rating, told the Financial Times. “China is the biggest creditor nation in the world and with the rise and national rejuvenation of China we should have our say in how the credit risks of states are judged.” On the corporate side, Mr Guan argues Moody’s Investors Service, Standard & Poor’s and Fitch Ratings – the three companies that dominate the global credit rating industry – have become too close to the clients they are supposed to be objectively assessing. He specifically criticised the practice of “rating shopping” by companies who offer their business to the agency that provides the most favourable rating. In the aftermath of the financial crisis “rating shopping” has been one of the key complaints from western regulators , who have heavily criticised the big three agencies for handing top ratings to mortgage-linked securities that turned toxic when the US housing market collapsed in 2007.

Note: For key news articles on the global financial crisis, click here.

Goldman reveals where bailout cash went
2010-07-24, USA Today
Posted: 2010-08-03 08:54:31
http://www.usatoday.com/money/industries/banking/2010-07-24-goldman-bailout-c...

Goldman Sachs sent $4.3 billion in federal tax money to 32 entities, including many overseas banks, hedge funds and pensions, according to information made public [on July 23]. Goldman Sachs disclosed the list of companies to the Senate Finance Committee after a threat of subpoena from Sen. Chuck Grassley, R-Ia. Goldman Sachs received $5.55 billion from the government in fall of 2008 as payment for then-worthless securities it held in AIG. Goldman had already hedged its risk that the securities would go bad. It had entered into agreements to spread the risk with the 32 entities named in Friday's report. Overall, Goldman Sachs received a $12.9 billion payout from the government's bailout of AIG, which was at one time the world's largest insurance company. Goldman Sachs also revealed to the Senate Finance Committee that it would have received $2.3 billion if AIG had gone under. Other large financial institutions, such as Citibank, JPMorgan Chase and Morgan Stanley, sold Goldman Sachs protection in the case of AIG's collapse. Those institutions did not have to pay Goldman Sachs after the government stepped in with tax money. Shouldn't Goldman Sachs be expected to collect from those institutions "before they collect the taxpayers' dollars?" Grassley asked. "It's a little bit like a farmer, if you got crop insurance, you shouldn't be getting disaster aid."

Note: For lots more from reliable sources on the Wall Street bailout by taxpayers, click here.

Insider Trading Inside the Beltway
2010-07-02, UCLA School of Law
Posted: 2010-07-12 10:33:21
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1633123

A 2004 study of the results of stock trading by United States Senators during the 1990s found that Senators on average beat the market by 12% a year. In sharp contrast, U.S. households on average underperformed the market by 1.4% a year and even corporate insiders on average beat the market by only about 6% a year during that period. A reasonable inference is that some Senators had access to – and were using – material nonpublic information about the companies in whose stock they trade. Under current law, it is unlikely that Members of Congress can be held liable for insider trading. The proposed Stop Trading on Congressional Knowledge Act addresses that problem by instructing the Securities and Exchange Commission to adopt rules intended to prohibit such trading. This article analyzes present law to determine whether Members of Congress, Congressional employees, and other federal government employees can be held liable for trading on the basis of material nonpublic information. It argues that there is no public policy rationale for permitting such trading and that doing so creates perverse legislative incentives and opens the door to corruption. The article explains that the Speech or Debate Clause of the U.S. Constitution is no barrier to legislative and regulatory restrictions on Congressional insider trading.

Note: Do you think that these highly successful investors in the US Senate might have a vested interest in protecting the existing financial and legal structure that makes their profits possible and protects them from criminal charges?

How Goldman gambled on starvation
2010-07-02, The Independent (One of the UK's leading newspapers)
Posted: 2010-07-12 10:28:40
http://www.independent.co.uk/opinion/commentators/johann-hari/johann-hari-how...

This is the story of how some of the richest people in the world – Goldman, Deutsche Bank, the traders at Merrill Lynch, and more – have caused the starvation of some of the poorest people in the world. At the end of 2006, food prices across the world started to rise, suddenly and stratospherically. Within a year, the price of wheat had shot up by 80 per cent, maize by 90 per cent, rice by 320 per cent. In a global jolt of hunger, 200 million people – mostly children – couldn't afford to get food any more, and sank into malnutrition or starvation. There were riots in more than 30 countries, and at least one government was violently overthrown. Then, in spring 2008, prices just as mysteriously fell back to their previous level. Jean Ziegler, the UN Special Rapporteur on the Right to Food, calls it "a silent mass murder", entirely due to "man-made actions." Through the 1990s, Goldman Sachs and others lobbied hard and the regulations [controlling agricultural futures contracts] were abolished. Suddenly, these contracts were turned into "derivatives" that could be bought and sold among traders who had nothing to do with agriculture. A market in "food speculation" was born. The speculators drove the price through the roof.

Note: For an abundance of reports from major media sources detailing the many complex and hidden strategies employed by financial corporations to keep their hyper-profits flowing in, click here.

20 people arrested at the G20 tell of ‘inhumane’ treatment at the hands of police
2010-06-28, Toronto Star (One of Toronto's leading newspapers)
Posted: 2010-07-12 10:10:34
http://www.thestar.com/news/gta/torontog20summit/article/829921--i-will-not-f...

*Lulu Maxwell, 17, Grade 12, Rosedale Heights: Maxwell and a friend were hanging around near Queen and Dufferin Sts. at a convergence centre for protesters on Sunday afternoon when police started making arrests. “My friend was blowing bubbles and I was scribbling peace signs on the sidewalk.” Within minutes, her friend was grabbed and Lulu was put up against a wall. Her backpack was searched and Lulu says an officer said she could be charged with possession of dangerous weapons “because I had eyewash solution in my backpack.” She was taken to the detention centre and almost 12 hours after her arrest was allowed to call her parents. She was released, without charges being laid, at 5 a. m. *Erin Boynton, 24, London, Ont. She was arrested at The Esplanade early Sunday morning after police boxed dozens of protesters in. “I was with a protest marching peacefully down Yonge from Dundas Square,” she said. “When the cops came at us, many people scattered and those who were left in front of the (Novotel) got arrested.” She said police came from all sides and “squished us in. They didn’t give us a warning to leave…. just announced that we are arresting all of you.” She said a lot of people at the detention centre were innocent bystanders. “The police violated all our rights . . . there was police brutality. Quite frankly, it was quite disgusting.” Boynton wasn’t charged.

Note: For lots more from major media sources on mounting threats to civil liberties, click here.

Goldman Sachs exec to advise central bank
2010-06-29, Businessweek/Associated Press
Posted: 2010-07-12 09:59:12
http://www.businessweek.com/ap/financialnews/D9GLB2AO3.htm

The chief executive of Goldman Sachs Canada has been named a special adviser to the head of Canada's central bank. The Bank of Canada said [on June 29] that Timothy Hodgson will advise central bank head Mark Carney, a former Goldman Sachs executive, on financial reform. Carney says Hodgson is one of Canada's top investment bankers. Hodgson is leaving Goldman Sachs. The company has come under sharp criticism over civil fraud charges brought by the U.S. Securities and Exchange Commission and because of the high pay its executives and traders received during the financial crisis. Hodgson joined Goldman Sachs in 1990 and became CEO of its Canadian operations in 2005.

Note: So Canada's central bank head, a former Goldman Sachs exec, will now be advised by the chief executive of Goldman Sachs Canada. Hmmmmm.

Sticking the public with the bill for the bankers’ crisis
2010-06-27, Globe and Mail (One of Toronto's leading newspapers)
Posted: 2010-07-05 10:39:36
http://www.theglobeandmail.com/news/world/g8-g20/opinion/sticking-the-public-...

My city feels like a crime scene and the criminals are all melting into the night, fleeing the scene. No, I’m not talking about the kids in black who smashed windows and burned cop cars on Saturday. I’m talking about the heads of state who, on Sunday night, smashed social safety nets and burned good jobs in the middle of a recession. Faced with the effects of a crisis created by the world’s wealthiest and most privileged strata, they decided to stick the poorest and most vulnerable people in their countries with the bill. How else can we interpret the G20’s final communiqué, which includes not even a measly tax on banks or financial transactions, yet instructs governments to slash their deficits in half by 2013. This is a huge and shocking cut, and we should be very clear who will pay the price: students who will see their public educations further deteriorate as their fees go up; pensioners who will lose hard-earned benefits; public-sector workers whose jobs will be eliminated. And the list goes on. These types of cuts have already begun in many G20 countries including Canada, and they are about to get a lot worse. But there is nothing to say that citizens of G20 countries need to take orders from this hand-picked club. Already, workers, pensioners and students have taken to the streets against austerity measures in Italy, Germany, France, Spain and Greece, often marching under the slogan: “We won’t pay for your crisis.” And they have plenty of suggestions for how to raise revenues to meet their respective budget shortfalls. Many are calling for a financial transaction tax that would slow down hot money and raise new money for social programs.

Note: This report from Toronto is by Naomi Klein, the author of The Shock Doctrine: The Rise of Disaster Capitalism. For powerful evidence that the violence at the recent G20 meeting was largely instigated by undercover police, click here.

U.S. banks' role in Mexican drug trade
2010-06-30, San Francisco Chronicle/Bloomberg News
Posted: 2010-07-05 10:25:35
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/06/29/BU2L1E6LV2.DTL

Wachovia [Bank] ... made a habit of helping move money for Mexican drug smugglers. San Francisco's Wells Fargo & Co., which bought Wachovia in 2008, has admitted in court that its unit failed to monitor and report suspected money laundering by narcotics traffickers - including the cash used to buy four planes that shipped a total of 22 tons of cocaine. The admission ... sheds light on the largely undocumented role of U.S. banks in contributing to the violent drug trade that has convulsed Mexico for the past four years. Wachovia admitted it didn't do enough to spot illicit funds in handling $378.4 billion for Mexican currency exchange houses from 2004 to 2007. That's the largest violation of the Bank Secrecy Act, an anti-money-laundering law, in U.S. history - a sum equal to one-third of Mexico's current gross domestic product. "Wachovia's blatant disregard for our banking laws gave international cocaine cartels a virtual carte blanche to finance their operations," said Jeffrey Sloman, the federal prosecutor who handled the case. "It's the banks laundering money for the cartels that finances the tragedy," said Martin Woods, director of Wachovia's anti-money-laundering unit in London from 2006 to 2009. Woods says he quit the bank in disgust after executives ignored his documentation that drug dealers were funneling money through Wachovia's branch network. "If you don't see the correlation between the money laundering by banks and the 22,000 people killed in Mexico, you're missing the point," he said.

Note: For abundant reports from reliable sources on the many dubious ways in which major financial firms make their profits, click here.

Police powers expanded for G20
2010-06-25, CBC News
Posted: 2010-06-28 11:08:47
http://www.cbc.ca/canada/toronto/story/2010/06/25/g20-new-powers.html

Police forces in charge of security at the G20 summit in Toronto have been granted special powers for the duration of the summit. The new powers took effect [on June 21] and apply along the border of the G20 security fence that encircles a portion of the downtown core. This area — the so-called red zone — includes the Metro Toronto Convention Centre, where delegates will meet. Under the new regulations, anyone who comes within five metres of the security area is obliged to give police their name and state the purpose of their visit on request. Anyone who fails to provide identification or explain why they are near the security zone can be searched and arrested. The new powers are designed specifically for the G20, CBC's Colin Butler reported Friday. Ontario's cabinet quietly passed the new rules on June 2 without legislature debate. Civil liberties groups are concerned about the new regulations. Anyone who refuses to identify themselves or refuses to provide a reason for their visit can be fined up to $500 and face up to two months in jail. The regulation also says that if someone has a dispute with an officer and it goes to court "the police officer's statement under oath is considered conclusive evidence under the act."

End Is Seen to Free Checking
2010-06-16, Wall Street Journal
Posted: 2010-06-28 09:45:20
http://online.wsj.com/article/SB10001424052748703513604575311093932315142.html

Bank of America Corp. and other banks are preparing new fees on basic banking services as they try to replace revenue lost to regulatory rules, in a push that is expected to spell an end to free checking accounts for many Americans. Free checking accounts, which have been widely available for more than a decade, have been a boon to middle-class consumers and attracted low-income customers to the banking system for the first time. Customers will likely be required to pay new monthly maintenance fees on the most basic accounts that don't generate a lot of activity. To avoid a fee, customers will have to maintain certain account balances or frequently use other banking services, such as credit and debit cards, automated teller machines and online accounts. Some consumer advocates warn the new fees will whack consumers who now manage their bank accounts to avoid such charges. The transformation of checking accounts comes at a time when banks are bouncing back from the steepest financial losses in a generation and are facing new regulations. To accelerate that recovery and recoup losses from new banking rules, financial institutions are increasingly leaning on customers who don't now generate enough revenue for the bank.

Note: Why hasn't the federal government protected consumers from this sort of response by the banking industry to new regulations imposed after the massive taxpayer bailout of these failing corporations?

Fed dodges bullet as House drops audit idea
2010-06-15, Reuters News
Posted: 2010-06-20 18:23:21
http://www.reuters.com/article/idUSN1527338120100615

The Federal Reserve scored a political victory ... as Democrats mulling financial reform backed off measures that would expose monetary policy to audits and make the head of the New York Fed a political appointee. The U.S. House of Representatives had approved a bill in December that included a provision, championed by Texas Representative Ron Paul, that would have opened the Fed's interest rate policy to congressional audits. But in a statement on Tuesday, House Democrats participating in negotiations over a final financial reform bill signaled a willingness to live with a narrower Senate audit provision that does not cover monetary policy. The Fed, which has admitted it was too complacent about regulatory oversight in the run-up to the global financial crisis, has come under heavy fire for being too close to the banks it regulates. The House Democrats also said they would try to defeat a plan contained in the Senate bill under debate that would allow the U.S. president to name the head of the New York Fed, a step that Fed officials have argued would undercut the central bank's political independence. The U.S. central bank appears to be emerging largely unscathed by the regulatory reform efforts. It successfully fought off a Senate push last month that would have stripped it of its oversight of smaller banks, and is poised to emerge as the most powerful financial regulator when reforms are complete.

Note: A news search on both Google and Yahoo revealed that MSNBC was the only media to pick up this Reuters story, yet MSNBC then removed the story. Why might that be?

Lawmakers Negotiating Bank Bill Hold Industry Stocks
2010-06-17, Bloomberg/Businessweek
Posted: 2010-06-20 18:19:57
http://www.businessweek.com/news/2010-06-17/lawmakers-negotiating-bank-bill-h...

Lawmakers writing the biggest overhaul of financial regulations since the Great Depression may have a stake in the outcome. Eight of 11 senators and six of 22 House members on a conference committee writing the final legislation own stocks in financial companies affected by the legislation, disclosure statements released yesterday show. One senator and nine representatives who also sit on the committee got extensions of the filing deadline and haven't yet disclosed their holdings. "It's always a concern that personal interests influence legislation," said Lisa Gilbert, a lobbyist for the U.S. Public Interest Research Group, a Boston-based organization pushing for stronger financial regulations. Senator Judd Gregg of New Hampshire reported Bank of America stock holdings and a savings account valued between $1 million and $5 million. The 43 negotiators are trying to iron out differences between the House and Senate versions of the legislation as they respond to an economic crisis that forced the U.S. to provide $700 billion in bailout funds for New York-based Citigroup Inc. ... Bank of America Corp. and other banks.

Note: For abundant reports from reliable sources on government corruption, click here.

Former Fed chief Volcker backs change in system
2010-05-20, San Francisco Chronicle (San Francisco's leading newspaper)
Posted: 2010-05-24 20:42:16
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/05/19/BU101DHAMC.DTL

The United States must curb consumption and credit and boost production and savings, but its citizens and leaders so far lack the will to change, economist Paul Volcker said. Volcker, 82, an adviser to the Obama administration, ... said the United States spiraled toward the Great Recession through an excess of debt that subsidized an appetite for consumer goods, many of them imported. The chief bugaboo, in Volcker's view, was a runaway financial sector that ... became a factory to make money by manipulating money. He said under-regulated financiers made big profits and bonuses by swapping derivatives and other exotic instruments that produced few of the widespread benefits - like better jobs and wages - that normally flow from investment. Now that this financial house of cards has collapsed, Volcker said, U.S. and world leaders must figure out how to stop powerful mega-banks and hedge funds from engaging in the same shenanigans that forced taxpayers to bail them out to prevent further catastrophe. "The central issue with which we have been grappling is the doctrine of 'too big to fail,' " Volcker said, alluding to how the United States bailed out institutions like insurer AIG to prevent their collapse from further damaging the economy.

Note: For a great collection of reports from major media sources on the hidden realities of the Wall Street crisis and the government bailout of big finance, click here.

Four Big Banks Score Perfect 61-Day Run
2010-05-12, New York Times
Posted: 2010-05-17 05:34:33
http://www.nytimes.com/2010/05/12/business/12bank.html

It is the Wall Street equivalent of a perfect game of baseball — 27 up, 27 down, the final score measured in millions of dollars a day. Despite the running unease in world markets, four giants of American finance managed to make money from trading every single day during the first three months of the year. Their remarkable 61-day streak is one for the record books. Perfect trading quarters on Wall Street are about as rare as perfect games in Major League Baseball. But Bank of America, Citigroup, Goldman Sachs and JPMorgan Chase & Company produced the equivalent of four perfect games during the first quarter. Each one finished the period without losing money for even one day. Their showing ... underscored the outsize — and controversial — role that trading has assumed at major financial institutions. It also drives home the widening lead that a handful of big banks are enjoying over lesser rivals on post-bailout Wall Street. The four banks ... reaped big rewards without necessarily placing big bets that stocks or bonds would go up or down. “This is not about hitting home runs,” said Jaidev Iyer, who runs his own risk management consulting firm, J-Risk Advisors. “This is just, as we call it, milking the market and your captive client base.”

Note: For an astounding list on the Forbes website of the richest companies in the world by assets, click here. All of the top 10 companies are banks, with collective assets of over $22 trillion! Yet we as taxpayers continue to pay to bail them out when they have problems. Is something wrong with this picture? For a graphic representation of this, click here. And for an abundance of deep reporting in major media articles on the hidden realities of Wall Street's shadowy operations, click here.

Plan for Congressional Audits of Fed Dies in Senate
2010-05-07, Wall Street Journal
Posted: 2010-05-17 05:31:14
http://online.wsj.com/article/SB10001424052748704370704575228164133105390.html

Last-minute maneuvering in the Senate allowed the Federal Reserve to sidestep legislation that would have exposed its interest-rate decision-making to congressional auditors. Pressure from the Obama administration led Senate lawmakers to alter a provision pushed by Sen. Bernie Sanders (I., Vt.) that was gaining momentum despite opposition from the Treasury and the Fed. It would have largely repealed a 32-year-old law that shields Fed monetary policy from congressional auditors. Thursday's Senate showdown came after senators on the left and right joined forces to support Mr. Sanders' provision. "At a time when our entire financial system almost collapsed, we cannot let the Fed operate in secrecy any longer," Mr. Sanders said. "The American people have a right to know." But Fed Chairman Ben Bernanke ... said in a letter to Congress the Sanders measure would "seriously threaten monetary policy independence, increase inflation fears and market interest rates, and damage economic stability and job creation."

Note: For an abundance of deep reporting on the hidden realities of Wall Street's shadowy operations, click here.

The Trades of a Lifetime in 20 Minutes
2010-05-08, New York Times
Posted: 2010-05-10 14:16:28
http://www.nytimes.com/2010/05/08/business/08cancel.html

Someone on Wall Street just made a killing. That was the subject of so much chatter among professional investors once the smoke cleared from the sudden panic and recovery on Thursday [May 6] that briefly knocked some stocks down to a penny or two a share. Who had kept his cool during those terrifying minutes and scooped up some dreamlike bargains? One thing, however, is certain: By luck, savvy, lightning speed or all three, there was money — gobs of it — to be made from the bargains that came and went in an instant. On Friday the blogosphere was alight with conspiracy theories suggesting that perhaps the whole thing had been instigated by a big bank or a hedge fund looking to make a quick profit. Some investment pros surely made a fortune from the trillion-dollar market swing. “Somebody got Accenture at a penny. They’re ready to announce their retirement,” joked Daniel Seiver, a finance professor at San Diego State University. Investors who owned gold or United States Treasuries ... saw big gains as global investors sought havens. But even those gains were small compared with those won by options traders who had placed bets on an index that rises in value when volatility increases. “The guys who probably made the most money in this were options players,” said Larry Tabb, chief executive of the Tabb Group, a financial services consulting firm.

Note: This article refers to the record-breaking 1,000 point intra-day drop in the Dow Jones index on May 7. For an abundance of deep reporting on the hidden realities of Wall Street's shadowy operations, click here.

Origin of Wall Street’s Plunge Continues to Elude Officials
2010-05-08, New York Times
Posted: 2010-05-10 14:14:04
http://www.nytimes.com/2010/05/08/business/08trading.html

A day after a harrowing plunge in the stock market, federal regulators were still unable on Friday [May 7] to answer the one question on every investor’s mind: What caused that near panic on Wall Street? The cause or causes of the market’s wild swing remained elusive, leaving what amounts to a $1 trillion question mark hanging over the world’s largest, and most celebrated, stock market. The initial focus of the investigations appeared to center on the way a growing number of high-speed trading networks interact with one another and with venerable exchanges like the New York Stock Exchange. Most investors are unaware that these competing systems have fractured the traditional marketplace and have displaced exchanges like the Big Board as the dominant force in stock trading. In a joint statement issued after the close of trading, the S.E.C. and the Commodity Futures Trading Commission said they were ... looking particularly closely at how different trading rules on different exchanges, which temporarily halted trading on some markets while activity in the same stocks continued on other markets, might have contributed to the problem. The pressure in the less-liquid markets was amplified by the computer-driven trades, which led still other traders to pull back.

Note: For more information on the impact of the new high-speed computer-driven trading methods, click here.

Stock Traders Find Speed Pays, in Milliseconds
2009-07-24, New York Times
Posted: 2010-05-10 14:12:19
http://www.nytimes.com/2009/07/24/business/24trading.html

It is the hot new thing on Wall Street, a way for a handful of traders to master the stock market, peek at investors’ orders and, critics say, even subtly manipulate share prices. It is called high-frequency trading — and it is suddenly one of the most talked-about and mysterious forces in the markets. Powerful computers, some housed right next to the machines that drive marketplaces like the New York Stock Exchange, enable high-frequency traders to transmit millions of orders at lightning speed and, their detractors contend, reap billions at everyone else’s expense. These systems are so fast they can outsmart or outrun other investors, humans and computers alike. And after growing in the shadows for years, they are generating lots of talk. Nearly everyone on Wall Street is wondering how hedge funds and large banks like Goldman Sachs are making so much money so soon after the financial system nearly collapsed. High-frequency trading is one answer. And when a former Goldman Sachs programmer was accused this month of stealing secret computer codes — software that a federal prosecutor said could “manipulate markets in unfair ways” — it only added to the mystery. Goldman acknowledges that it profits from high-frequency trading, but disputes that it has an unfair advantage. Yet high-frequency specialists clearly have an edge over typical traders, let alone ordinary investors.

Note: For a wealth of deep reporting on the hidden realities of Wall Street's shadowy operations, click here.

'Goldman Conspiracy' must kill reforms
2010-05-04, MarketWatch (a Wall Street Journal Digital Network website)
Posted: 2010-05-10 13:54:43
http://www.marketwatch.com/story/goldman-conspiracy-must-kill-bank-reform-201...

Capitalism is dead. The economy has a new Invisible Hand, the Goldman Conspiracy of Wall Street bankers. This transfer of power happened suddenly. As recently as late 2008 the Invisible Hand was on life support, near death. Suddenly, miraculously the Treasury secretary, Goldman's former CEO, transferred the power into a new Invisible Hand of God, the free-market ideology of Reaganomics ... a power absolutely essential to the survival of Wall Street's mega-bonus culture. Yes, that's why the Goldman Conspiracy must kill financial reforms ... why they will kill effective reform with the backroom support of Obama. This was predicted back in late 2008, even before the bailouts, back when we thought Reaganomics dead. Shock Doctrine author Naomi Klein warned: "Free market ideology has always been a servant to the interests of capital ... During boom times it's profitable to preach laissez faire, because an absentee government allows speculative bubbles ... When those bubbles burst, the ideology becomes a hindrance and goes dormant while big government rides to the rescue," then a neo-Reaganomics "ideology will come roaring back when the bailouts are done. The massive debts the public is accumulating to bail out the speculators will then become part of a global budget crisis," setting up a new bubble, bigger meltdown, and the Great Depression 2 the world narrowly avoided in 2008.

Note: For a wealth of key reporting on the hidden realities of the Wall Street's shadowy operations, click here.

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