Wednesday, December 29, 2010

Wall Street's Ten Biggest Lies for 2010. We can't forget and we can't let congress go soft on them anymore!

Like the article states, its the ten biggest...the biggest lies. Not including all the little one's, or the "I don't recall" ones. I remember during the hearings, after the financial meltdown, watching their smugness on the stand was sickening. It reminds me of the smugness that some (most) of our Senator's and Congressmen have. The "we know what's best for you" attitude. I truly feel congress is to cozy with Wall Street, and won't do what really needs to be done to fix this mess. Two of the biggest stand-outs in this article for me where the jobless benefits and our teachers. We are losing teachers...and can you see why...GREED! Greed on Wall Street and greed in Congress. When 25 hedge fund managers are worth 658,000 teachers, that show's you who congress, or hell...any of us feels is the more important one. Our educators are incredibly important, and with what they make starting out, they can barley raise a family. A hedge fund manager could raise everybody's families... seriously. We would never need to worry about that though, they're too greedy. But ask congress if a hedge fund manager was greedy, they would say no, its the unemployed who are greedy. They don't want or need to work because we keep giving them money not to work. And I know some in congress think all they do is drink and party because they give the unemployed SO damn much money they can afford to drink and party. I've been unemployed. I barley had enough money to support my self (not a family), just my self. I had no money left over to party. When your on unemployment, you want to work because you really can't live on what they pay in unemployment benefits. It show's you just how Out-Of-Touch, Congress and Wall Street really are. We can't forget!
Amplify’d from
5. "25 hedge fund managers are worth 658,000 teachers."

Nearly everyone on Wall Street sincerely believes that they are "worth" the enormous sums they "earn." You see, their pay is determined by the market, and markets don't lie. They reflect the high value our skilled elites bring to the economy. So we shouldn't be shocked that the top 25 hedge fund managers together "earn" $25 billion a year, even at a moment when more than 29 million Americans can't find full-time work. The outrageous economic logic of Wall Street compensation has those 25 moguls taking home as much as 658,000 entry level teachers (they earn about $38,000 per year). How can that be justified? It can't. These obscene "earnings" are the product of 30 years of financial deregulation, as well as the tax cuts and tax loopholes that our government has just extended. The hedge fund honchos get most of their money by siphoning off wealth from the rest of us, not by creating new value. I dare Wall Street to prove otherwise.
7. "Lengthened availability of jobless benefits has raised the unemployment rate by 1.5 percentage points."

You see, the unemployed cause their own unemployment, at least if you believe this assessment from a March 17th research note from JP Morgan Chase. (Next, Wall Street will call for a return of the Poor Houses.) The theory is simple -- you give people money not to work and they won't look for jobs. Still, it takes chutzpah for JP Morgan Chase, the beneficiary of billions of dollars in taxpayer largess, to criticize the unemployed for not finding jobs that aren't there, precisely because JP Morgan Chase helped to destroy them! Dear JP Morgan research staff: Five to six workers are now competing for every available job. If that's too complicated for you quants to grasp, maybe you should try a game of musical chairs in the trading room.
10. "I'm shocked, shocked to find that gambling is going on in here." Okay, okay, Claude Raines said that in Casablanca, not on Wall Street. But Wall Street and its defenders say exactly the same thing about their opaque derivatives games. Louise Story's excellent piece in The New York Times shows how a handful of banks have cornered the market clearinghouses for derivatives - entities that are supposed to make derivatives less risky. The big banks are limiting competition, according to Story, because they "want to preserve their profit margins, and they are the ones who helped write the membership rules." Meanwhile, Wall Street is quietly pushing to exempt its most profitable derivatives from even these rigged exchanges. So don't be "shocked, shocked" when Wall Street crashes again and we're asked to foot the bill. And that's when, not if.

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