Wall Street cannot see that a regime change has come to the markets, one in which corporations will be increasingly on the defensive, hounded by governments everywhere looking to raise tax revenue, and assaulted by a permanent buyers strike from consumers adjusting to their own drop in living standards. Image
The financial press likes to talk up those occasions when the Dow presses on above 10,000. Such talk lately has become desultory, since it seems every other week the Dow lurches below 10,000 and then manages to climb its way back up. The market has been in this funk since February of this year, when the Dow began its most recent push from below 10,000, all the way to a peak around 11,200, only to fall three times below the 10,000 level since and recover with less and less conviction.
The public is angry. Why should the public pay for the bankers mistakes. Iceland blogger Halldor Sigurdsson
Who cleans up the mess when ignorant, greedy bankers rack up massive debt then go broke? The people of Iceland made a strong statement Saturday. The sins of big bankers and government regulators shouldn’t fall on the citizens. By a 93% to 2% margin, they voted down a proposal requiring them to cover bad debt incurred by one of the nation’s oldest and largest banks. Covering the debt would have cost Iceland’s 317,000 citizens around $17,000 each.
Iceland’s national referendum was the first opportunity for the people of any nation to vote directly on who pays when the financial elite fail.
As citizens voted, Iceland’s Prime Minister was dismissing the importance of the vote and promising to negotiate a payment scheme obligating citizen subsidies for bad debt created by Iceland’s beyond-bad bankers.
Time to hit those thieves where it hurts – their pockets!
By DER SPIEGEL Staff
In this seven-part series, Spiegel closely examines the greed and corruption that led to the near collapse of the global finance system, and cautions that another wave of collapse threatens the world economy. Despite US efforts to hamper regulation of Wall Street, other nations are taking self-protective measures.
Posted in Economy Economics, Neoliberalism, Obama and Company
Tagged corruption, deregulation, economics, federal reserve, fiat money, financial crisis, Neoliberalism, stock bubbles, wall street banksters