.
Nouriel Roubini (New York University's Stern School of Business):"
"This is what the free-market ideologues at the Fed, Treasury and White House have now become – especially after the bailout of Fannie and Freddie’s shareholders, management and bondholders – Comrade Paulson, Comrade Bernanke and the Bolshevik Great Leader Bush. But then their whole approach and ideology has always been not one of free market capitalism but rather one of privatizing gains and socializing the losses; or socialism for Wall Street, the rich and the well connected. So they will now get what they deserve and worked so hard to achieve: a nationalization and bailout of the U.S. financial system."
Nicholas von Hoffman: State Capitalism Comes to America
"The Clinton-Bush II administrations finished the work of destroying and/or emasculating the regulatory framework inherited from the 1930s New Deal and replaced it with nothing. Their deregulation was the economic equivalent of opening the doors to a maximum security penitentiary and letting the most dangerous criminals in captivity out to feast on the civilian society. ..Instead of rounding up the escaped felons from their Wall Street dens and re-imposing law and order, Paulson and Federal Reserve Chairman Ben Bernanke have been running to the scenes of the crimes committed by the escapees to attend to the wounded and cart off the dead"
The two parties, when the matter is to help the guys of Wall Street, seem to embrace socialism. Both electoral machinery, Democrats and Republicans, collaborated with the delight that provides the easy lobby check in your pocket, in generating a real cascade of "modernization" (often crude accounting tricks) that have helped create the breeding ground for the 1929 Financial Crash and the Great Depression of the 30, but this time with dynamite built in.
. In 1980, Democrats eliminated the federal caps on interest rates and other regulatory measures that condemned the Savings and Loans eliminating the healthy competition with banks. The reaction was more than expected. When the American Savings (S. & L.), driven by the deregulation of 80s, paid high interest on deposits guaranteed by the state and were devoted to making the risky gambling that lead them in swarm into bankruptcy, loading taxpayers with a $ 100.000 million black hole.
. The same law also eliminated the federal law prohibiting usury (which has resulted that today are usual one-day – high rates loans and predatory credit cards) warming the atmosphere for strengthening the subprime cyclones that came later.
. In 1992, the Commodity Futures Trading Commission (CFTC), in charge to monitor speculation in the markets for commodities, issued the 35 regulation exempting certain types of energy contracts from the requirement of being contracted in regulated NYMEX and in 2000 other rule of the same agency (Commodity Futures Modernization Act) exempted from any regulation the electronic transactions. In practice it means that most of the largest transactions in the market are "over-the-counter", secret, deregulated and totally opaque, a perfect breeding ground for speculation in energy and raw materials that are disrupting the markets.
. A fortiori most banks are allowed to mount subsidiaries - "SIV funds" - where they put their CDOs and MBSs that disappear off the consolidated balance sheet of the parent institution. At a stroke capitalization ratio had gone down in history. The banks could now raise their level of exposure to infinity and would not hesitate to do so. The more mortgages, packaging and sold CDOs more benefits at each stage of the process.
. For 25 years the Federal Reserve has been in line with the greedy desregulation. So the monetary policy was designed in one direction, favoring capital over labor, creditors over debtors and finance over the real economy, betraying the foundations of regulation, supervision and financial discipline on that the central bank was created in 1913.
Nouriel Roubini (New York University's Stern School of Business):"
"This is what the free-market ideologues at the Fed, Treasury and White House have now become – especially after the bailout of Fannie and Freddie’s shareholders, management and bondholders – Comrade Paulson, Comrade Bernanke and the Bolshevik Great Leader Bush. But then their whole approach and ideology has always been not one of free market capitalism but rather one of privatizing gains and socializing the losses; or socialism for Wall Street, the rich and the well connected. So they will now get what they deserve and worked so hard to achieve: a nationalization and bailout of the U.S. financial system."
Nicholas von Hoffman: State Capitalism Comes to America
"The Clinton-Bush II administrations finished the work of destroying and/or emasculating the regulatory framework inherited from the 1930s New Deal and replaced it with nothing. Their deregulation was the economic equivalent of opening the doors to a maximum security penitentiary and letting the most dangerous criminals in captivity out to feast on the civilian society. ..Instead of rounding up the escaped felons from their Wall Street dens and re-imposing law and order, Paulson and Federal Reserve Chairman Ben Bernanke have been running to the scenes of the crimes committed by the escapees to attend to the wounded and cart off the dead"
Federal Mortgages.Inc
The two parties, when the matter is to help the guys of Wall Street, seem to embrace socialism. Both electoral machinery, Democrats and Republicans, collaborated with the delight that provides the easy lobby check in your pocket, in generating a real cascade of "modernization" (often crude accounting tricks) that have helped create the breeding ground for the 1929 Financial Crash and the Great Depression of the 30, but this time with dynamite built in.
. In 1980, Democrats eliminated the federal caps on interest rates and other regulatory measures that condemned the Savings and Loans eliminating the healthy competition with banks. The reaction was more than expected. When the American Savings (S. & L.), driven by the deregulation of 80s, paid high interest on deposits guaranteed by the state and were devoted to making the risky gambling that lead them in swarm into bankruptcy, loading taxpayers with a $ 100.000 million black hole.
. The same law also eliminated the federal law prohibiting usury (which has resulted that today are usual one-day – high rates loans and predatory credit cards) warming the atmosphere for strengthening the subprime cyclones that came later.
. In 1992, the Commodity Futures Trading Commission (CFTC), in charge to monitor speculation in the markets for commodities, issued the 35 regulation exempting certain types of energy contracts from the requirement of being contracted in regulated NYMEX and in 2000 other rule of the same agency (Commodity Futures Modernization Act) exempted from any regulation the electronic transactions. In practice it means that most of the largest transactions in the market are "over-the-counter", secret, deregulated and totally opaque, a perfect breeding ground for speculation in energy and raw materials that are disrupting the markets.
. A fortiori most banks are allowed to mount subsidiaries - "SIV funds" - where they put their CDOs and MBSs that disappear off the consolidated balance sheet of the parent institution. At a stroke capitalization ratio had gone down in history. The banks could now raise their level of exposure to infinity and would not hesitate to do so. The more mortgages, packaging and sold CDOs more benefits at each stage of the process.
. For 25 years the Federal Reserve has been in line with the greedy desregulation. So the monetary policy was designed in one direction, favoring capital over labor, creditors over debtors and finance over the real economy, betraying the foundations of regulation, supervision and financial discipline on that the central bank was created in 1913.
