Wall Street Gambling, Price Manipulation, etc

I wonder if investment banking especially in the US has created wealth or destroyed it?
( I agree it has made a few individuals rich enough to leave when the sh1* hits the fan)

 

Investment banks created "financial products" to maximize their trading profits and disguise their liabilities.

http:// free photo hosting



Since all these products are simply ponzi schemes, the poor guy on the street will have to pay for them each time they blow up..

http:// upload

 

Created

Of note- the TARP funds shoved into banks long ago returned a profit to the US coffers.
Also- anyone see that Fannie just went into the black?

Perturbations in economies send everyone out on witch hunts- at the end of the day, it's hard to really tell what causes them.

 

Its obvious what causes PERTURBATIONS. A disconnect between supply and demand.caused by a financial system that encourges profit seeking speculation..insured with taxpayer cash..
The TARPS was a disaster. Moral Hazard. The next bubble is inflating now

Time for TARPS 2.. or better yet.... permatarp

http://www.jsonline.com/business/subprime-vehicle-loans-are-surging-2e9dq0f-201365811.html



Goldman Saks is back into the subprime market. These guys went bankrupt and were rescued in the last crash

 

your missing the big picture the cost the US INC was/is a massive debt bill you have left your siblings who most likely ( as in the EU) will never have the wealth their parents had/have
Bankrupt cities are the same issue on a small scale

 

I get it
Golden Sacks ( everything they touch)

 

I agree with most of what you say here Michael, but I have some trouble with this, "The TARPS was a disaster".
I just don't think there was another viable option at that MOMENT in time, the cliff of 2008. Had we let it go the correct bankruptcy route I'm not sure there was enough money around to have bailed ANY of those big institutions out, and that massive disruption would have surely have plunged us into a worldwide depression.

And I am certainly very unhappy that we haven't cleaned up some of Wall Street. These asses are right back to their old tricks. Yes I think we will experience a II version.

 

you notice the Chinese are slowly making their currency the new worlds trading currency to (IMHO) allow spending all their USD on gold then be done with USD
They will end up with all the gold and a currency with a value...interesting

 

I don't know enough to agree or disagree, but David Stockman, President Reagan's Budget Director, strongly disagrees with you.

http://thedianerehmshow.org/shows/2013-04-03/david-stockman-great-deformation

http://onpoint.wbur.org/2013/04/04/stockman

 

Am I?:



The banks did it?

Not in my book.

 

Come on..GDP figures are meaningless to the man on the street.

living standards have been stagnant or falling for over a decade.

The bump in your gdp graph marks perfectly the financial sectors rise, driven by worthless speculation and profiteering...not increased production.

http://

 

What caused the "financial crisis"?

Seems the easy question eh?

It was not caused by the banks or 'Wall Street'.

 

Debt...issued , package as sausage securties and traded by the Financial industry

http://www.forbes.com/sites/panosmo...hy-the-next-financial-crisis-will-be-nastier/


Next crisis

http://cdn.theatlantic.com/static/m...to Predict the Next Financial Crisis[1]-2.pdf

 

I can't agree with this strategy...certainly not long term. I think the 'derivatives' are part of the problem in masking the risk.

Derivatives

If I remember correctly the big guys and banks on Wall Street were so 'concerned' about these derivatives that they then created the 'credit default swaps' CDS as an insurance policy for failed derivatives,...is that correct?

Credit Default Swaps



http://www.cbsnews.com/video/watch/?id=5274961n

 

I listened to one of his recent presentations, and he makes some interesting points. But I don't think there is anyway we could have survived a number of HUGE bankruptcy's that would have occurred almost simultaneously at that 2008 time frame on Wall St. WE and the rest of the world would have fallen into DEPRESSION for some significant period of time. There just wasn't enough liquid capital around in the private sector to bail Wall St out. It took the US government via the US taxpayer to bail them out.