Gigantic Upward Transfer of Wealth No Conspiracy
by Conrad Gerstenberger
The recent financial crisis and resulting recession was no surprise to Ben Bernanke, Timothy Geithner, the FDIC, high ranking government officials, and many other bankers, executives, and various managers, according to a May 6, 2010 article by Richard Clark. They all knew. And yet it was no conspiracy, because the Wall Street investment environment has become so de-regulated that a new kind of wealth-creation strategy called "financialization" can flourish even while the real U.S. economy is mired in stagnation. The Federal Reserve's role in all of this is two-fold: 1) provide a hospitable environment so that "bubble-making" can flourish (keep interest rates low), and 2) oppose any additional regulation on derivatives, securitization, and off-balance operations--- lethal operations that triggered the financial crisis in the first place. The result? The real U.S. economy will continue to stagnate while the chasm between rich and poor grows ever larger.
Thanks for the contribution to my blog, bro...excellent article, and I learned something!
ReplyDeleteattn Conrad:
ReplyDeleteit's most interesting that despite the rampant documented criminality, the Dept of Justice (Eric Holder and the pseudo-Constitutional professor soon to be sans-President --- B. Obama) refuse to even prosecute
but, i shouldn't be surprised.
we have an upcoming Presidential election and Obama needs the money ... Wall Street money
~ Nnamdi