Bankers and traders still have the same irresponsible, accountability- free incentives they have had for the past 40 years to generate as much revenue as they possibly can each year, regardless of the consequences. The change occurred when Wall Street firms stopped being partnerships, in which every partner put his full wealth on the line every day, and became corporations, which put the risks on their shareholders and creditors.
What’s made all this possible is the vast amounts of capital that Wall Street firms have amassed. Fifty years ago, Goldman Sachs had around $10 million of capital, which came from its partners; today Goldman has upward of $74 billion of capital, derived mostly from the generosity of its shareholders and the creditors who have bought Goldman’s public and private securities (Make Wall Street Risk It All By WILLIAM D. COHAN The NY Times ) http://opinionator.blogs.nytimes.com/2010/10/07/make-wall-street-risk-it-all/?partner=EXCITE&ei=5043 Financialization is a new term used to discuss the emergence of a new form of capitalism in which financial markets dominate over the traditional industrial economy. Traditionally capitalism was the accumulation of profit through trade and commodity production. Financialization is understood to mean the vastly expanded role of financial motives, financial markets, financial actors and financial institutions in the operation of domestic and international economies. The Glass Steagall Act, the FDR Banking Bill, was setup over 70 years ago . On November 12, 1999 Council on Foreign Relations member William Jefferson Clinton stated the, " Glass- Stegall is no longer appropriate for our economy. This was good for the industrial age. The Financial Modernization Bill is the key to rising paycheck and great security for ordinary Americans". Council on Foreign Relations member William Clinton then signed the 'Financial Modernization Bill'. With the signing of the bill old capitalism and free market economics died and the “new capitalism” and markets controlled by a small group of elite investment bankers was born. The repeal was the foundation that provided for non transparent financial manipulation and use of leverage to revolutionize the activities of investment beginning in 1999, to amass huge fortunes for the investment bankers who designed, marketed and oversaw the use of leveraged investments, and to generate awesomely speculative endeavors at hedge funds, which have gone unregulated by government oversight. Alan Greenspan, Paul Volcker, G. William Miller, and William McChesney Martin have all chaired the Federal Reserve board. All are members of the Council on Foreign Relations. As of September 1993, the Congressional Budget Office estimated that handling losses in failed savings and loan institutions would cost $120 billion from 1990 through 1998 (this figure does not include $60 billion spent before 1989). The loss figure has recently been reported to be over $250 billion, double the original estimate. Among those found guilty of bank fraud were Neil Bush and Lance Benson. Neil is the son of CFR member George Bush, Lance is the son of CFR member Bill Clinton's Secretary of the Treasury Lloyd Benson. Despite being found guilty of fraud Neil Bush and Lloyd Benson escaped punishment and didn't pay back any money. So much for taking responsibility for ones actions! Isn’t one of the jobs of the Federal Reserve to be watchdog? The CFR has only 4000 members (http://www.cfr.org/about/membership/ roster.html ) yet they control over three-quarters of the nations wealth. The CFR also has 206 Corporate members ( http://www.cfr.org/about/corporate/roster.html ). The CFR runs the State Department and the CIA. The CFR has placed 100 CFR members in every Presidential Administration since Woodrow Wilson. They work together to misinform and disinform the President to act in the best interest of the CFR individual and corporate members not the best interest of the American People. The following reuters article has been modified to identify Council on Foreign Relations members being considered to replace President Obama’s current economic advisor CFR member Larry Summers. Whose economic interests will they promote? Factbox: Potential candidates to replace Summers WASHINGTON Sept 21 | Tue Sep 21, 2010 11:37pm EDT ( http://www.reuters.com/article/idUSTRE68L0CE20100922 ) (Reuters) - White House economic adviser <Council on Foreign Relations member> Larry Summers is stepping down from his job at the end of the year to return to his position as a professor at Harvard University, the administration said on Tuesday. Following are economists that have been mentioned as potential replacements for Summers as director of the White House National Economic Council. <Council on Foreign Relations member> LAURA TYSON A member of the President's Economic Recovery Advisory Board, an outside panel of economic experts advising Obama. Tyson is a former top economic adviser to former President <Council on Foreign Relations member> Bill Clinton. She is also a professor at the University of California, Berkeley's Haas School of Business. <Council on Foreign Relations member> DIANA FARRELL A deputy to <Council on Foreign Relations member> Summers on the National Economic Council. She also sits on Obama's Auto Task Force. >From 2002 to 2009, Farrell was Director of the McKinsey Global Institute, the economics research arm of McKinsey & Company. Prior to joining McKinsey, she worked at <Council on Foreign Relations member corporation> Goldman Sachs as a financial analyst. JASON FURMAN He's also a deputy to Summers. Furman served as Economic Policy Director of Obama's presidential campaign. He served in the <Council on Foreign Relations member> Clinton administration as a staff economist at the Council of Economic Advisers and later worked for the National Economic Council. In addition, he was a senior adviser to a top World Bank official. <Council on Foreign Relations member> ANN FUDGE A member of the bipartisan deficit commission Obama formed early this year to tackle the deficit. Fudge was chairman and chief executive officer of Young & Rubicam Brands. She also held senior executive positions at General Mills and Kraft. GARY GENSLER Chairman of the Commodities Futures Trading Commission, Gensler is a former Treasury official and <Council on Foreign Relations member corporation> Goldman Sachs employee. He was also a senior adviser to former Senate Banking Committee Chairman Paul Sarbanes, on the Sarbanes-Oxley Act. <Council on Foreign Relations member> GENE SPERLING Counselor to Treasury Secretary <Council on Foreign Relations member> Timothy Geithner. Sperling headed the National Economic Council in the <Council on Foreign Relations member> Clinton administration. He served as an economic policy adviser to the Clinton-Gore presidential campaign and was also an economic adviser to former New York Governor Mario Cuomo. MARK ZANDI Chief economist at Moody's Analytics, Zandi was an economic adviser to John McCain's presidential campaign. But he has also advised the White House and congressional Democrats and Republicans. WASHINGTON Sept 21 | Tue Sep 21, 2010 11:37pm EDT JEFFREY IMMELT Chairman and CEO of <Council on Foreign Relations member corporation> General Electric since 2001. Immelt is also a member of The Business Council and is on the board of the New York Federal Reserve Bank. <Council on Foreign Relations member> RICHARD PARSONS Chairman of Citigroup and a former chair and chief executive of <Council on Foreign Relations member corporation> Time Warner, Parsons was on the Obama transition team's economic advisory board before being named Citigroup chairman. He also served on a task force under former President George W. Bush that examined Social Security changes. <Council on Foreign Relations member> ANNE MULCAHY Former <Council on Foreign Relations member corporation> Xerox Corp. chief executive. She serves on the President's Economic Advisory Board. (Reporting by Joanne Allen; Editing by Todd Eastham) -- Please consider seriously the reason why these elite institutions are not discussed in the mainstream press despite the immense financial and political power they wield? There are sick and evil occultists running the Western World. They are power mad lunatics like something from a kids cartoon with their fingers on the nuclear button! Armageddon is closer than you thought. Only God can save our souls from their clutches, at least that's my considered opinion - Tony You received this message because you are subscribed to the Google Groups "PEPIS" group. Please feel free to forward it to anyone who might be interested particularly your political representatives, journalists and spiritual leaders/dudes. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/pepis?hl=en
