Paul Farrell On The 4 Time Bombs That Would "Ignite A Wall Street Revolution"

Tyler Durden's picture

That the bankrupt US is living on borrowed time between various can kicking episodes is by now not news to anyone. Neither is it news that as long as the broader population finds brief distractions, such as the latest iPad app or the occasional Charlie Sheen scandal, which keep them busy in peak advertising hours, few if any will care about the sordid details of the unsustainable big picture. This ongoing apathy is starting to get to some market commentators most notably Paul Farrell of MarketWatch who summarizes events in the past 2 years as follows: " Admit it, we lost the opportunity. Jail a bank CEO and Wall Street will miraculously reform? You’re joking, right? Wall Street got away with a “legal” bank heist. Today the should-be/would-be inmates are running the prison. Wall Street’s corrupt banks have lost their moral compass … their insatiable greed has become a deadly virus destroying its host nation … their campaign billions buy senate votes, stop regulators’ actions, manipulate presidential decisions. Wall Street money controls voters, runs America, both parties. Yes, Wall Street is bankrupting America." But nobody cares. So what would make America care? Here are the four time-bombs which Farrell believes will be sufficient to blow up Wall Street.

From MarketWatch:

4 ticking time bombs that will ignite the Wall Street revolution

Yes, the rich live in a different world. And no, information won’t change them. But a revolution will. Revolutions build slowly over a long time. Then, suddenly, a critical mass, a flash point, something totally unexpected ignites the ticking bomb.

It happened recently in a remote Tunisian village. Mohamed Bouazizi, a 26-year-old college graduate, unable to pay bribes, set himself on fire to protest police confiscation of his unlicensed vegetable cart. That triggered a revolution. And his death rapidly led to the collapse of a 24-year dictatorship.

Today we have four hot time bombs, tick-ticking, soon to make history; any one can easily accelerate the revolution that’s already killing Wall Street from within.

1. Wealth gap: Super-Rich vs class wars, death of democracy

The gap: In one generation, America’s wealthiest 1% has exploded from 9% to 23% of America’s income, while middle-class income has stagnated. Even Buffett admits: “There’s class warfare, all right, but it’s my class, the rich class, that’s making war, and winning.”

But my rich friend tells the real story, of their social disconnect. The rich just don’t care. They live in a different world, live by a self-centered code lacking a moral compass. The public welfare is honored only if supported by tax benefits.

The wealth gap is widening and soon something unpredictable will ignite a Wall Street revolution.

2. Wall Street’s doomsday capitalism vs rule by anarchy

A key Supreme Court decision accelerated and codified Wall Street’s ability to use billions stolen from taxpayers to lobby Washington and solidify its power, all for its own self-interest, through campaign payola, senators’ votes, presidential access, manipulation of regulators, grabbing tax benefits, etc. And it’s every man and woman for themselves.

Don’t believe it? Know this, democracy is dead and you’re in denial. Wall Street CEOs and Forbes 400 billionaires are either engaged in a secret conspiracy, or a classic anarchy picking apart America, oblivious of the fact they are setting up the next big revolution.

3. Pentagon’s perpetual war machine vs America’s budget time bomb

The mathematics of our $75 trillion Social Security and Medicare deficits often seem insurmountable, but can be recalibrated. However, the war-loving mindset of America’s neocons — fueled by China’s military actions, the insatiable expansion of our military spending and a Pentagon prediction that global population growth — is putting more and more pressure on the world’s scarce resources, and will, in turn, increase global wars and the demand for more war spending, increasing the risk of sudden revolutions everywhere.

4. Global population explosion vs resources, jobs, better lifestyles

As the world population explodes from 7 billion to 10 billion in the next generation, the demand for more jobs and the pressure on scarce resources will increase, while expectations will fall as the ratio of haves to have-nots increases, making the world all around Wall Street a burning powder keg setting up a revolution.

Bottom line: Forget jailing Wall Street’s dictators. It’s naïve and too late. We missed that opportunity. But a revolution will do the trick, give us a second chance to jail the crooks.

Until then, remember, these four factors are building to a head, merging into a critical mass that will accelerate into a revolution and destroy Wall Street from within: The widening wealth gap, capitalism’s new rule-by-anarchy, the high cost of feeding the Pentagon’s costly war machine, and the huge global population explosion.

Perhaps Paul is right. One thing is certain: the ongoing divergence from economic equilibrium driven by a global central planning cartel which hopes to fill valuation holes will infinite money printing has been working so far, yet the simplest laws of physics say that eventually every equilibrium asserts itself. So far most guesses of how much longer this can continue have been wrong. And whereas we indeed had a chance to reassert a fair market value after the Lehman crash, we simply papered it over with another round of the same failed policies that resulted in a historic crash. What is truly interesting, and deserves a study in itself, is the seemingly endless ability of those in control to delude not only themselves but all those around them. Alas, this is primarily driven by the non-overlap of the various key cycles in the current world: from the hedge fund manager performance cycle of a few months at most, to the Wall Street bonus cycle of one year, to the political cycle of 4 years, and lastly, to the actual business cycle which lasts between 7-10 years, and the generational cycle of just over 20 years. As long as there are extensive conflicts of interest pushing and pulling all four of these in different directions, and as long as the Fed believes it can control them successfully, the kinds of time bombs that Farrell writes about are guaranteed.

h/t Steve

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Mongo's picture

Revolution? Fuck that, people want the iPad 2... and iPhone version n+1

ZakuKommander's picture

iPad 2?  Old school.  I'm waiting with bated breath for the iPad 3.  Bother me then.

Irwin Fletcher's picture

No joke. You need WiFi to videoconference? Whatev. 1024x768 is so VGA.

Dr. Richard Head's picture

Quote from a dear family member of mine, "I'm glad we have the disctractions of Charlie Sheen.  I don't want to focus my attention on what's going on in the world.  I need some entertainment to distract me for some time."


alien-IQ's picture

Sounds like you're related to my brother-in-law.

flacon's picture

Perhaps the culling will do some good for the rest of us.

minosgal's picture

Quote from a dear family member of mine, on my comment that it might be a good idea to stock up the pantry because gas prices are rising: 'No. I'm not goint to buy extra. We don't eat much'

An that reaction was tame. Some close to me have actually gotten angry at suggestions that unemployment is worsening, real estate prices will not rise and cost of living will continue to increase.

Sheesh. Methinks it's more than just preference for distraction; more like a desperate denial.

velobabe's picture

wait wait, the "bond" market is on fire! ~ d. bonderman

MarketTruth's picture

maxIpad2 yet it still no flash support? Yup, crippleware can be like that.

Michael's picture

The general population of sheeple are going to be so disappointed when they find out the daily diet of green shoots and recovery they've been fed turn into green turds and depression.

10kby2k's picture

O'bommy answered the possible NFL shut down question FIRST!  Shows where the USA's priorites are. Whats life without football?

Dollar Bill Hiccup's picture

You say you want an iPad2 well you know, we all want to change the world ...

Hot Shakedown's picture

I believe that a targeted assassination of several key US figures will occur within 2 years- including the puppet poodle with no papers

Bartanist's picture

My guess is that eventually those fighting the US will realize that the American people do not like their hypocritical, lying and ethically bereft "so called" leaders either, be they in banking, industry or government and that the way to change the direction of a bully is to not attack other victims of bullies (such as the American people), but the bullies themselves.

InconvenientCounterParty's picture

I believe you could find yourself on the back of a warlord's hummer manning a .50.

That ring around your torso won't be a halo.

Guy Fawkes Mulder's picture

I was skeptical that there could be basis for birther truth, until I heard Karl Rove deny it.

Bartanist's picture

One wonders where the "good" people have gone? Are they all Muslims? (probably not... but least they have a moral and ethical code). But when an entire country is built through conquest, theft, fraud, murder, enslavement, assassination and other anti-social means it is no wonder that those who rise to the top mirror the complete lack of an ethical or moral compass ... other than as the false facade that is so prized by the ruling elitists.

Psquared's picture

At the close of the Constitutional Convention, a woman reportedly asked Benjamin Frankin, "Mr. Franklin, what sort of government have you given us?" To which he replied, "a republic if you can keep it."

Looks like we didn't keep it.

I like Paul Farrell. He's been kicking this thing around since the beginning. We need more people like him to spread the word.

RECISION's picture

Remember, Con-gress is a house of representitives.

They represent all that is good and great about the people.

Mmmm...OK - scratch that.

Their vices are the society's vices.

... and we will just leave "good" completely out of this discussion.



bankonzhongguo's picture

Until you see someone in the top 1% get cut down like a pig in the street nothing will change.  Sadly, these guys don't even walk in the street.  They have NOTHING in common with you or your little stack of gold hidden under your bed.  You forget that among "The Rich" even the wall street bonus brigade are mostly work-a-day guys.  "The Rich" are people that haven't gone shopping for food in decades or can't drive a car.  Their servants have servants - mostly smart lackey lawyers and lobbyists setting the Republic (or Libya) on fire.  Pull out Forbes richest person porn mag and then figure out where exactly those people live.  You can't.  You are a million miles from nowhere in changing anything.  Chances are there is not one high value target living in your city/state/country. 

And to the cubical based domestic terrorism slag hunting for "Amerika al-qaeda" on financial blogs - fuck you!  You are part of the problem.  The creep-fuck money worshipers consider you, your family and your dip-shit work no better than a pile of monkey shit at the bottom of your cage.  Get ready, because under Obamacare-Medicare austerity your mother is next.  And you make it happen day after day going forward.

flattrader's picture

Damn, you ROCK!

>>>Chances are there is not one high value target living in your city/state/country.<<<

You are right.

But, there are a few zip codes where they frequently visit...Hmmm...

>>>Sadly, these guys don't even walk in the street.  They have NOTHING in common with you or your little stack of gold hidden under your bed. You forget that among "The Rich" even the wall street bonus brigade are mostly work-a-day guys.<<<

Yes, you are right again.

Still, a good way to send a message.

I still can't get over the fact that Ken Lay drove the streets of Texas with impunity while awaiting sentencing...a state where everybody and their Uncle's dog is armed.  Given how many lives, families and careers he destroyed he should have been Swiss cheese.

(And I do in fact believe he died of real coronary event while on vacation in CO and wasn't "heart attacked".)

goldfish1's picture

Lay slipped out the back, jack and he's living high on the hog looking over his shoulder.

Psquared's picture

These people are cowards. At the first sign of trouble they will flee the sinking ship and move to their island estate or some S. American country. Let a mob run string-up a few of the lower level asshats or their lackeys and they will run and hide.

Once they are gone we can rebuild this country the way it was supposed to be.

And to whoever said it above, I hope the foreign people of the world who hate America realize that it is just a name. The great majority of people who happen to live here are decent, hard-working citizens who care about each other and the state of the world.

Bitch Tits's picture

1.) "Let a mob run string-up a few of the lower level asshats or their lackeys and they will run and hide."

2.) "The great majority of people who happen to live here are decent, hard-working citizens who care about each other and the state of the world."

Hmmmm . . . mobs, asshats, lackeys, string 'em up?

So we care about each other but not the banksters or pols or wealthy, right? They are the bad guys.

I think there are small rules broken and large rules broken, and the larger the rule broken, the better the pay-off. Which explains our wealthy. They are us, with bigger balls and more influential friends in higher places. Same, same.


goldfish1's picture

Hey tits,

Same/same? Good rationalization. Just keep deluding yourself about your ethics and conscience and maybe, just maybe, one day you'll rise to become one of the smaller balled, mediocre-friended lower level lackey sell-outs.

You know, the ones who are doing the dirty work for the big pricks who are running this country and it's people into the ground.

It's a mistake to lump ethical, hardworking, productive people into that lot.

A Texan's picture

"Until you see someone in the top 1% get cut down like a pig in the street nothing will change.  Sadly, these guys don't even walk in the street.  They have NOTHING in common with you or your little stack of gold hidden under your bed.  You forget that among "The Rich" even the wall street bonus brigade are mostly work-a-day guys.  "The Rich" are people that haven't gone shopping for food in decades or can't drive a car."


The top 1%?  That's a lot of people - probably in the neighborhood of 1.5 million households.  Listen to what Gordon Gecko said about them in the original Wall Steet:


"Wake up, will ya pal? If you're not inside, you're outside, OK? And I'm not talking a $400,000 a year working Wall Street stiff flying first class and being comfortable, I'm talking about liquid. Rich enough to have your own jet. Rich enough not to waste time. Fifty, a hundred million dollars buddy. A player, or nothing. Now you had what it took to get into my office; The real question is whether you got what it takes to stay."


The point is that "rich" in the sense of being rich enough to control the levers of society is only for the top 1/10 of 1% of that 1% - 1,500 or so families, people worth north of $250 million, people that run companies and real estate empires and banks.  Most of the rest of the top 1% is just along for the ride, they are the enablers for the true masters.

Their world will be rocked when a few of THEM get gunned down in the street, and the only time you'll find them doing that is when they're going to a board meeting, a prestigious event or to testify in Congress.  Otherwise, forget it, they don't do their own shopping, can't drive a car (except those that really can, and they have Ferraris, Mazeratis or top-end Porches), etc.


Oh, and here's what Gordo says about our richest 1% in 1987:


"The richest one percent of this country owns half our country's wealth, five trillion dollars. One third of that comes from hard work, two thirds comes from inheritance, interest on interest accumulating to widows and idiot sons and what I do, stock and real estate speculation. It's bullshit. You got ninety percent of the American public out there with little or no net worth. I create nothing. I own. We make the rules, pal. The news, war, peace, famine, upheaval, the price per paper clip. We pick that rabbit out of the hat while everybody sits out there wondering how the hell we did it. Now you're not naive enough to think we're living in a democracy, are you buddy? It's the free market. And you're a part of it. You've got that killer instinct. Stick around pal, I've still got a lot to teach you." [the highlighted group automatically doesn't run things - their capital enables others].

steadysteve's picture

You can ,however ,find them on their yachts. Those of us who work in that particular location will wait until they use this most private of locations to flee the coming unrest. Then one night they will just disappear over the side....

tempo's picture

The top 1% will be long gone on their lear jets to their armed secret island homes before  the poop hits the fan and the rest of us will be left to fight for a few crumbs of bread.  I am glad I am old and will not see the collaspe of America.  I would not want to be young with the crap we left for them.

reader2010's picture

Fuck that! They need to tweet or do facebook with that fuckin pad.

covert's picture

I wanna live in TRON. divide and conquor and rule. it's what all power trippers try to do.


prophet_banker's picture

reminds me of what Jim had to say, people love the chains that bind freedom:


How can I set free anyone who doesn't have the guts to stand up alone and declare his own freedom? I think it's a lie ?' people claim they want to be free ?' everybody insists that freedom is what they want the most, the most sacred and precious thing a man can possess. But that's bullshit! People are terrified to be set free ?' they hold on to their chains. They fight anyone who tries to break those chains. It's their security…How can they expect me or anyone else to set them free if they don't really want to be free?
- Jim Morrison

Oh regional Indian's picture

The four horsemen of the Oppocalypso.

The perfect storm.

Riders on it too. each of those is already underway, overtly or covertly.

Change we will believe in is finally upon us.


jimijon's picture

Remember that apocalypse comes from a greek root meaning unveiling. We are now experiencing this. People are seeing that all their leaders, be they religious, corporate, or political are all totally corrupted. And, of course this has all been prophesied. 


Psquared's picture

^^^ +1000.

I wonder if all the unrest in the Middle East is a sign that the unveiling is about to take place? I think it is safe to say that God is not pleased.

prophet_banker's picture

the emperor wears no cloths; only wish that = people do something about it.

MayIMommaDogFace2theBananaPatch's picture

their insatiable greed has become a deadly virus destroying its host nation

History tells us that this force will destoy everything.

Village Idiot's picture

WALL STREET LOCUSTS.  Incidentally, Wikipedia suggests they may taste like chicken...


"Locusts are an edible insect and are considered a delicacy in some countries and in history"

BobPaulson's picture

Well, it has only brought down every other empire in history. But this time is different. 

Actually it really may be different since this time there may be few places to hide from the collapse. Asimov's Foundation comes to mind.

Zero Govt's picture

they (Big Govt and Big Corps) will rape everything they touch ...don't be a victim, collect your assets out of their sphere of influence ...just don't let the Vampire Squid be able to suck you dry 

Jasper M's picture

Well, if it destroyed Everything, there'd be no history of it, now, would there?

prophet_banker's picture

yup, parasite polemic is quite fitting for the top 1%