Too Big To Fail
"Money was a lazy b*tch, until you put it to work! And look how it works! Look how it grows! Materializes out of nowhere! As leaders, innovators, captains of finance, you will always be subject of the jealous resentment, the petty tantrums of the unwashed masses, the insolvent, the irresponsible, the invidious, the losers. They will envy you, your successes, they will despise you, but they secretly want to be like you! Irresponsible single mothers, uneducated immigrants, lead-drinking ghetto-strutters, homeless, crying, babies, starving senior citizens, obnoxious, entitled African Americans who object to having bullets pumped into their bodies by police: all these people are angry, entitled, and making noise, and they are endangering our democracy and economy, our greatness."
Workers of all ages are caught in a vice. Older workers need to keep working longer in an economy which values younger workers (and their cheaper healthcare premiums). And here's why so many workers have to work longer - earned income's share of the GDP has been in a free-fall for decades as Fed-funded financiers and corporations skim an ever greater share of the nation's GDP. (Thanks again, Federal Reserve, for hollowing out our economy to benefit the few at the expense of the many.)
In the first 14 weeks of the New Year, gold rose 16%. The first quarter qualified as its best beginning year performance in 30 years (CNBC, E. Rosenbaum, 4/14/16). The reversal was prompted by stumbling stock markets and a series of sharply dovish turns from central banks around the world. Perhaps the main reason people buy gold is as a hedge against inflation. But uncertainty and fear contributed undoubtedly to gold’s stellar first quarter rise. But will it continue?
Americans are realizing something is wrong with the system.
Human progress has been three steps forward, two steps back. That a non-fringe candidate of a major political party in the United States can call himself a socialist constitutes a leap backward. That it can happen after a century of socialistic horrors: impoverishment, ruination, tyranny, war, and tens of millions dead, bespeaks not just deadly ignorance and delusion, but depravity.
We were not surprised to read this morning that federal regulators announced that five out of eight of the biggest U.S. banks do not have credible plans for winding down operations during a crisis without the help of public money. Which is precisely the point: now that the precedent has been set and banks know they can rely on the generosity of taxpayers (with the blessing of legislators) why should they even bother planning; they know very well that if just one bank fails, all would face collapse, and the only recourse would be trillions more in taxpayer aid.
What in the World is Going on with Banks this Week? Emergency meetings, banker summits, crashing European banks.......Submitted by Bruno de Landevoisin on 04/12/2016 17:29 -0400
This predatory exploitation is only possible if the central bank and state have partnered with financial Elites.
Italy is the “too big to fail”, “elephant in the room”. Should Italy try Austria’s solution, it presumably would cause a “chain reaction with ripple effects that would be felt across the European banking system.” Instead, officials will attempt to “ringfence” the problem, hoping to “sweep it under the rug” where presumably a “€360bn pile of non-performing loans” will cure itself, eliminating the need for additional bail-ins
“He says what he really thinks.” That is the standard explanation for the astounding political rise of Donald J. Trump. Somehow the news media have missed the meaning of this: that the rest of political America refuses to say what it really thinks. Why is that and how can it be?
The reason is that banks understand their core reason to exist is threatened by peer-to-peer, decentralized payment platforms and currencies. If payments no longer need to be routed through a centralized trusted institution, then one core function of banks disappears. If peer-to-peer lending and securitization becomes easier and cheaper due to the blockchain, then banks' function of allocating capital also vanishes.
The Middle Class is dying. Unlike the oligarchs’ Big Banks, we are not “too big to fail.” Our jobs are gone. Our unions are gone. Our Middle Class wages are gone. Very soon, our homes will be gone. But don’t worry! It’s just the New Normal.
- Saudi Arabia Will Only Freeze Oil Production If Iran Joins (BBG)
- Japanese gloom ensures slow start to quarter for world stocks (Reuters)
- Saudi Arabia Plans $2 Trillion Megafund for Post-Oil Era (BBG)
- Prices Sag in Warning to ECB Even as Manufacturing Picks Up (BBG)
- China factories scent hint of spring, Europe still chilly (Reuters)
- Theranos Devices Often Failed Accuracy Requirements (WSJ)
- Roller-coaster first quarter ends with shares, dollar under pressure (Reuters)
- Oil prices slide as U.S. crude stocks hit record (Reuters)
- GE Files to End Fed Oversight After Shrinking GE Capital (WSJ)
- FDA Eases Rules for Abortion Pill, Making Access Simpler (BBG)
- Kremlin denies report of Russia-U.S. deal on Assad's future (Reuters)
- Thirst for Gasoline Fuels Oil Rally (WSJ)
- Landlords in last-minute rush to beat stamp duty rises (BBG)
“Nobody for President. That’s my campaign slogan. We got money for wars but can’t feed our homeless. The government is hopeless. It’s like a reality show. The Real lives of the House Liars... all this pageantry is just designed for fools. They gonna give you the one they choose. Too big to fail, too rich to lose. And I’m still too broke to vote."