PODCAST (20 December 2009) - Are Think Tanks like the CATO Institute Draining Value from the Average American by Peddling "Greed" and "Deregulation?"
This penultimate FRANCONOMICS.COM podcast on Financial Economics for Calendar Year 2009, published on Dec 20, 2009, delves into the following:
- Wall Street flushed with cash even as homelessness (foreclosures) and unemployment keeps rising: United Kingdom and France are taxing the bonus of bankers earning at least $41,000 or more (this is the approximate lower limit of bonus amounts that will be taxed in UK, data for France is as yet unknown) in bonus in 2009 at 50%. Albeit, the banks are paying this tax, not the bankers individually. So, why are we not doing the same with Goldman and other banks? Specifically, it is well known that Goldman has set aside more than $16 billion for bonus payments in 2009. If we tax it at even 50% and get $8 billion back, it will be covering some ground on the $13 billion that the US Taxpayers lost in terms of the AIG handout to Goldman last year…
- Think Tanks like CATO Keep Peddling “Greed” and “Deregulation”: One of the overlooked constituents amongst Thought Leaders responsible for the crisis include many Think Tanks of Washington DC. We analyze the CATO institute, whose slogan “Individual Liberty, Free Markets, and Peace” is nothing but a clever camouflage of what Milton “Mr. Greed” Friedman preached all his life: Capitalism, Individual Liberty, Free Markets, and “Greed.” We expose a briefing paper from CATO on the Financial Crisis which claims that “Greed” is not to be blamed for the Financial Meltdown, since it is a “constant;” and neither should deregulation like the Gramm-Leach-Bliley Act (GLB Act), for it allowed BofA to acquire Merrill, and JP Morgan Chase to acquire Bear Stearns. In fact, the GLB Act is the reason why “too big to fail” banks like Goldman and JP Morgan Chase are now bigger than before and more monopolistic --- any kind of monopoly is bad for the ultimate consumer --- the American taxpayer. The CATO institute, a parking place for free riding elitists calling themselves “libertarians” also gives away half-a-million dollars every alternate year in the form of a Milton Friedman prize for advancing liberty.
Since Americans can’t own a home without getting foreclosed, should the new American Dream be centered around something more than what one can own? In the banking world, Greed rules the roost today. So, is there any scope for the average American to be compassionate, less greedy, and more caring towards fellow humans? In fact, is the American Dream changing: It is not what I own, but what I am? Listen to this eye-opening podcast and find out…
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PODCAST (7 December 2009) - TARP to Cost $200 billion less as per US Treasury - How to Salvage Even More - Tax Goldman Bonus at 100%?
This irregular podcast dated Dec 7, 2009 from FRANCONOMICS.COM scrutinizes the following:
- The recent US treasury announcement that the TARP program would cost $200 billion less: we ask the Congress to pass legislation to tax the bonus of Goldman (scheduled to pay $16 billion in bonus this year) and other banks at 100% and pull it back into the US Treasury: of course this is a pipe dream, considering the fact that all the major Investment banks are big time campaign financiers for ALL politicians, and because of the elitism that prevails in Capitalistic America where star journalists who get compensated in millions tout “CAPITLISM,” etc. etc. The podcast urges the listener not to buy the book from Hank Paulson, the architect of the 700 billion dollar TARP program… Rather, the listener should buy the podcaster's upcoming book, “The 20 Trillion Dollar Value Drain: How Goldman and Other Banks Looted America, And Why They Would Do It Again. ”
- The downward move in the official unemployment rate from 10.2% to 10%: this still translates to 25% real unemployment for All Americans. Also some ethnic groups are suffering, e.g., there is 50% unemployment amongst African American Teenagers.
- The American Recovery and Re-investment Act programs like the $8000 tax-credit (now extended to Spring and Summer of 2010), up to $6500 tax-credit for move-up buyers; and the extension programs for COBRA health care coverage for the unemployed (currently ending for some Californians). However, how about subsidies for the renters, for the long-term uninsured. It seems that the poor always get the raw-end of the stick: the renter who can't buy a home and get the credit, the poor who can't afford health insurance, and the teenager who has to peddle drugs since he can't get a job!
- The Pecora-II investigation headed by Phil Angelides: is 1200 interviews enough??
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PODCAST (11th October 2009) - Includes Sound-bites on Congressman Grayson Grilling the Fed Chairman and the Fed Inspector General regarding the half-a-trillion-dollar SWAP etc.
In this irregular podcast dated October 11th, 2009, we introduce new Congressional hearings and other relevant sound bites (including the barely audible TARP COP report for the month of October by Elizabeth Warren), interspersed with the FRANCONOMICS.COM analysis:
1. US has gone from being the largest Creditor to become the largest Debtor Nation, with National Debt well over of $11 trillion --- part of it is of course in TARP / TALF / pPiP which bailed out a few thousand Wall Street bankers at the cost of 300 million Americans. Do we need SIGNIFICANT CAMPAIGN FINANCE REFORM?
2. Federal Reserve has been loading up on Toxic Waste sugar-coated as Legacy Assets… listen into Congressman Grayson grilling the Inspector General of the Federal Reserve and quizzing Fed Chairman Bernanke; and our analysis … we need a REALLY STRONG AUDIT OF THE FEDERAL RESERVE.
3. Our presentation and analysis of the October TARP COP report by Elizabeth Warren: Foreclosures have worsened in the last 6 months. One in eight mortgages is now in foreclosure / default. Each foreclosure costs lenders like Freddie / Fannie to the tune of $120,000. This money ultimately comes from taxpayers like you and me.
4. Analysis of the newly formed Financial Enquiry Commission headed by Phil Angelides, who was no match for Arnold Schwarzenegger in the California Gubernatorial Elections. 5 of the other 9 members are Democrats, and 4 are Republicans.
5. We also give our two cents on the stock market moving up; Dow has closed with a new yearly high. (Disclaimer: Analysis / Recommendation is not investment advice. What you invest / buy / sell is at your own risk.)
While unemployment is pushing 15 million (more like 25 million are really unemployed), and while foreclosures are scheduled to top 12 million households, Fed Chairman Bernanke keeps saying that “we are out of the recession.” Instead of taking cash bonus, should the bankers be forced to pocket bonus in terms of toxic waste which they helped create? Are we being DEEPLY ROBBED by the Plutocracy / Oligarchy that is Wall Street + Washington? How long should we let our tax dollars fund the gas bills (and the bonus and the Swiss bank accounts) of the bankers driving the Lamborghinis? Listen to this eye-opening podcast to find out…
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PODCAST - 23rd September 2009 - From NINJA Loans through Paulson TARP to the Geithner Cover-up - Main Street Keeps Bleeding
In this irregular podcast dated September 23rd, 2009, we introduce and analyze the following sound bites / dialogues:
1. Secretary Geithner defending ex-Goldman CEOs / employees working for the US Treasury as deeply honorable men. He also claims that the jobs all these ex-Goldman employees did was complex, for it required complex negotiations with banks etc. However, it is common sense (and also there is great public mistrust) that these folks would not (and did not) take the side of Main Street. Certainly, from our prior podcasts where we have quoted Congressmen ripping Hank Paulson apart on this, it is clear that Congress now regrets passing the 700 billion dollar TARP, which went to "Paulson's Banker buddies"...
2. When the 700 billion dollars were being cooked by Hank Paulson as TARP (of which Goldman eventually got $22.9 billion --- $10 billion directly and $12.9 billion through AIG), there were many opinions as to how the taxpayers' money should be given. Since Warren Buffett had invested $5 billion during those times with Goldman Sachs for preferred stock, let's listen in to what Warren Buffett would have done / how Buffett would have negotiated with these banks, as per one Senate Banking Committee Economist (needless to say, nothing like this happened)...
3. If the CEOs / executives of financial firms deliberately set out to make bad loans / liars loans / NINJA loans (as per a S&L regulator Professor Bill Black, on the Bill Moyer's Journal), where is the Pecora II Investigation? Should we not be investigating these specialty lenders (such as Indy Mac) as a bottom-up investigation approach. Some of those loan specialists who sold these liars loans are jobless today, and would willingly co-operate. All we have to do is ask them...
4. Professor Black: Secretary Geithner is covering up, just like Secretary Paulson did before... This is a serious charge, and is all the more reason a Pecora II needs to get started ASAP (as soon as possible). Also, even though Geithner has gone on record saying that he was never a regulator (we play the sound bite), as per NewYorkFed.org, one of the jobs of the FED is to supervise and regulate depository institutions. Also listen to Prof. Black on how / why Paulson (and Geithner) ignored the LAW OF PROMPT CORRECTIVE ACTION...
5. Also listen in to Obama's speech urging the congress to pass the 700 billion TARP program, after it failed to pass the floor of the Congress: A package has not yet passed... Get this done... Even as you get it done to stabilize the markets, we have more work to do to make sure that Main Street is getting the same kind of help as Wall Street is getting...... This is followed by some FRANCONOMICS.COM questions to the current administration...
Are we in the middle of an ETHICAL and MORAL CRISIS? Where is our PECORA II? Where is the Investigation? What are we doing to find out why this happened? When will some of the culprits behind the crisis be put in jail? Don't give up, listen to the podcast...
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Podcast - 18th September 2009 - How Value Was Drained Through AIG / Goldman
In this irregular podcast dated September 18th, 2009, we introduce and analyze the following sound bites / dialogues:
1. A lady asking Larry Summers about regulating these banks who have returned the money fast so that they could escape the comp czar, and Summers' response.
2. TARP COP (Congress Oversight Panel) Chairwoman quizzing Secretary Geithner about the conversations between the AIG counter-parties (like Goldman Sachs, though the name is not explicitly mentioned in her questioning) and the US Treasury prior to the AIG bailout...Geithner responds that it was more complex than just helping the counterparties, it was about all the others who were insured...We also introduce a Q&A between Congressman Dennis Kucinich and AIG CEO Mr. Liddy which shows, for example, that some of these small time insured --- policemen, firemen, teachers in Ohio --- were short-shafted by AIG, even as counterparties like Goldman were paid 12.9 billion dollars through the AIG bailout...
3. Congressmen Stearns and Quigley quizzing Hank Paulson, the man behind the TARP program, the man who got the ethics waiver from the then White House so that he could talk more than 20 times with Goldman CEO (Hank was the CEO of Goldman immediately before becoming the US Treasury Secretary in 2006) prior to the AIG bailout (these conversations were what Warren was referring to in the dialogue with Geithner, which Geithner dodged well)... Stearns quizzes him strongly about the CONFLICT OF INTEREST, and Quigley quizzes him about MORAL HAZARD (in the context of letting Lehmann, Goldman's competitor fail)...
When we go around the country from Boston to Bay Area, people say that nothing will happen --- the talk has moved on to Health Care --- however, as we explain in this podcast, everyone, including Geithner and Summers, is looking up to the Congress for regulation. As that happens, it behooves the Congress to call entities like the CEO of Goldman and ask him what transpired between him and Hank Paulson prior to the AIG bailout. It also behooves the Obama administration to get the Pecora II investigation started ASAP...
We also introduce Sam Mishra's upcoming book…THE 20 TRILLION DOLLAR VALUE DRAIN: HOW GOLDMAN AND OTHER BANKS LOOTED AMERICA AND WHY THEY WILL DO IT AGAIN... and we also give our two cents on where the Stock Markets are headed. Listen in to enjoy, appreciate, and support this ongoing battle with those who looted us...And spread the word, for they are already doing it as you listen in...Goldman has announced close to 12 billion in bonus payments for 2009!
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PODCAST: Sam Mishra expands his Value Drain Analysis framework by touching upon the following:
- Recaps
how the Value Drain Analysis is similar to the Value Chain Analysis
businesses use, and the genesis of the 787 billion dollar bailout /
Value Drain
- Explains why the $500,000 executive compensation cap will not work (Since the banks will re-price the stock options for their executives, if required)
- Touches upon how the
fat-cats in other industries (like the Auto industry) are enjoying
billions in bailout stimulus, after having enjoyed hundreds of millions
of dollars in compensation in other industries
- Why even though President Obama means well, it will be difficult for him to pull America out of this financial disaster (since ex-bankers are now in charge of auditing these banks)
- How corruption still plauges our Political Economy
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