Tuesday, November 8, 2011

Banks Profit From Socialization of Losses and Privatization of Gains

Wall Street’s resurgent prosperity frustrates its claims, and Obama’s, Published: November 6 

"The largest banks are larger than they were when Obama took office and are nearing the level of profits they were making before the depths of the financial crisis in 2008, according to government data. 

Wall Street firms — independent companies and the securities-trading arms of banks — are doing even better. They earned more in the first 21 / 2 years of the Obama administration than they did during the eight years of the George W. Bush administration, industry data show...."

http://www.washingtonpost.com/business/economy/wall-streets-resurgent-prosperity-frustrates-its-claims-and-obamas/2011/10/25/gIQAKPIosM_story.html 

MAJIA HERE: At the height of the crisis the too-big-to-fail investment and commercial banks had huge infusions of capital and guarantees from the US government, allowing them to scoop up assets at bargain prices with relatively little competition.

Wall Street firms and the big banks have socialized their losses while privatizing gains.

For background on how this works see here:

Looting: The Economic Underworld of Bankruptcy for Profit by Akerlof and Romer http://papers.ssrn.com/sol3/papers.cfm?abstract-id=227162

 

2 comments:

  1. Good analysis, HOWEVER, a few weeks back I used the exact same NRC link to extract data and to re-analyze the basic presumptions of the "natural radiation" baseline. The bottom line is that the natural radiation baseline as it is set, is a complete and utter joke, a travesty, a deception of humanity.

    The baseline is at least 6 times higher than it needs to be from ACTUAL background radiation that you can't avoid.

    You need to scroll down 2 or 3 pages on my link here to the story I wrote,

    http://oahutrading.blogspot.com/p/japan-nuclear-information.html

    Here is an Excerpt
    Exposing one of the "Big Lies"

    In some areas, Radon is not completely avoidable. Mostly it seeps into basements. Radon ventilation systems are very effective, they can reduce this amount at least 50% and maybe 80%, just depends how much air you want to move. So instead of a 37% of your exposure if you reduce that 80% it is 7.5%, plus 5% cosmic, and 3% soil, that is 15%. So by "so called 'natural sources" like med procedures, nuke medicine, those items are jacking up your doe like 400% from where is could be "naturally". the whole natural radiation lie, unravels as a complete joke... about half of us will contract cancer in our lives, and yet you can't prove that any one source caused it. Therefore by the "Scientific Method" radiation cannot be proven to be unsafe, therefore the PNPs Pro Nuke Pimps will state that "natural radiation" is proven to be safe, and therefore a little extra disaster radiation is OK too. Check the chart closely, the PNP lies immediately emerge.

    ReplyDelete
  2. I guess the government would benefit from the taxes of businesses that are of a much larger scale. Instead of planning larger recreational projects for communities, why not invest more on donation?

    Lauren Edith

    ReplyDelete