Re: [Marxism-Thaxis] The Obama Bubble: Why Wall Street Needs a Presidential Brand

2008-03-11 Thread CeJ
Bringing us back again to the ideological bubble that attacks so many
Americans at this time of the political cycle: HISTORY IS NOT MADE BY

Case in point, Gov. Spitzer, the so-called Sheriff of Wall Street. The
ideological delusion here was that one man and his posse of attorneys
could 'clean up' Wall Street and perfect American capitalism. And yet
despite all his regulatory and legal activity, American capitalism has
proceeded with the ongoing securities bubble of the past 25 years with
no pauses, just interesting transitions. From junk bonds to post-big
bang services (a la Enron but also Carlyle Group) to .com to sub-prime
loans -- sold as portfolios of JUNK BONDS-- and continues unabated to
cheap dollar/oil speculation (and gold and how many
commodities can you buy on borrowed money and 32X gearing?).

HISTORY IS NOT MADE BY GREAT MEN. They will back Barack Obama only to
have the chance to piss on his political grave when the time comes.


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[Marxism-Thaxis] The Obama Bubble: Why Wall Street Needs a Presidential Brand

2008-03-10 Thread Charles Brown
Note critique of tech and housing bubbles.



The Obama Bubble: Why Wall Street Needs a Presidential Brand
Wednesday, 05 March 2008  
by Pam Martens 

Despite Barack Obama's claim that his campaign represents a mass movement of 
average folks, the initial core of his support was largely comprised of rich 
denizens of Wall Street. Why would the super wealthy want a percieved black 
populist to become the nation's chief executive officer? The Obama bubble 
was nurtured by Wall Street in order to have a friend in the White House when 
the captains of capital are made to face the legal consequences for 
deliberately creating current and past economic bubbles. Wall Street 
desperately needs a president who will sweep all the corruption and losses, 
would-be indictments, perp walks and prosecutions under the rug and get on with 
an unprecedented taxpayer bailout of Wall Street. Who better to sell this 
agenda to the millions of duped mortgage holders and foreclosed homeowners in 
minority communities across America than our first, beloved, black president of 
hope and change? 

The Obama Bubble: Why Wall Street Needs a Presidential Brand 

by Pam Martens 

This article originally appeared in the print edition of 

We are asked to believe that those white executives at all the biggest Wall 
Street firms now want a black populist president because they crave a level 
playing field for the American people.” 
The Obama phenomenon has been likened to that of cults, celebrity groupies and 
Messiah worshipers. But what we're actually witnessing is Obama mania (as in 
tulip mania), the third and final bubble orchestrated and financed by the 
wonderful Wall Street folks who brought us the first two: the Nasdaq/tech 
bubble and a subprime-mortgage-in-every-pot bubble. 
To understand why Wall Street desperately needs this final bubble, we need to 
first review how the first two bubbles were orchestrated and why. 

In March of 2000, the Nasdaq stock market, hyped with spurious claims for 
startup tech and companies, reached a peak of over 5,000. Eight years 
later, it's trading in the 2,300 range and most of those companies no longer 
exist. From peak to trough, Nasdaq transferred over $4 trillion from the 
pockets of small mania-gripped investors to the wealthy and elite market 

The highest monetary authority during those bubble days, Alan Greenspan, 
chairman of the Federal Reserve, consistently told us that the market was 
efficient and stock prices were being set by the judgment of millions of 
highly knowledgeable investors. 

Mr. Greenspan was the wind beneath the wings of a carefully orchestrated wealth 
transfer system known as pump and dump on Wall Street. As hundreds of court 
cases, internal emails, and insider testimony now confirm, this bubble was no 
naturally occurring phenomenon any more than the Obama bubble is. 

Nasdaq transferred over $4 trillion from the pockets of small mania-gripped 
investors to the wealthy and elite market manipulators. 

First, Wall Street firms issued knowingly false research reports to trumpet the 
growth prospects for the company and stock price; second, they lined up big 
institutional clients who were instructed how and when to buy at escalating 
prices to make the stock price skyrocket (laddering); third, the firms 
instructed the hundreds of thousands of stockbrokers serving the mom-and-pop 
market to advise their clients to sit still as the stock price flew to the moon 
or else the broker would have his commissions taken away (penalty bid). While 
the little folks' money served as a prop under prices, the wealthy elite on 
Wall Street and corporate insiders were allowed to sell at the top of the 
market (pump-and-dump wealth transfer). 

Why did people buy into this mania for brand new, untested companies when there 
is a basic caveat that most people in this country know, i.e., the majority of 
all new businesses fail? Common sense failed and mania prevailed because of 
massive hype pumped by big media, big public relations, and shielded from 
regulation by big law firms, all eager to collect their share of Wall Street's 
rigged cash cow. 

 The current housing bubble bust is just a freshly minted version of Wall 
Street's real estate limited partnership frauds of the '80s, but on a grander 
scale. In the 1980s version, the firms packaged real estate into limited 
partnerships and peddled it as secure investments to moms and pops. The major 
underpinning of this wealth transfer mechanism was that regulators turned a 
blind eye to the fact that the investments were listed at the original face 
amount on the clients' brokerage statements long after they had lost most of 
their value. 

Today's real estate related securities (CDOs and SIVs) that are blowing up 
around the globe are simply the above scheme with more