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Joseph A. Palermo

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Occupy Wall Street's "Gullible" and "Unsophisticated" Protesters

Posted: 10/18/11 09:50 AM ET

In an admirable bit of reporting, Nelson Schwartz and Eric Dash of the New York Times did us all a favor by asking bankers, hedge fund and money managers what they think about the Occupy Wall Street protesters. Said one top hedge fund director who wished to remain anonymous:

"Most people view it as a ragtag group looking for sex, drugs and rock 'n' roll."

A veteran bank executive added:

"It's not a middle-class uprising. It's fringe groups. It's people who have the time to do this."

And another longtime money manager opined:

"Who do you think pays the taxes? Financial services are one of the last things we do in this country and do it well. Let's embrace it. If you want to keep having jobs outsourced, keep attacking financial services. This is just disgruntled people."

This longtime money manager also shared his "disappointment" with Wall Street's political water carriers in Washington: "They need to understand who their constituency is," he said. And yet another financial industry official said about the protests there's "a lot of sound and fury signifying nothing." In general, Schwartz and Dash report, nearly all the bankers they talked to dismiss the protesters as "gullible and unsophisticated."

And then there's the oligarch, John Paulson, who made a fortune on Fabrice "Fabulous Fab" Tourre's (Goldman Sachs) peddling junk securities while he bet against them. Paulson states:

"The top 1 percent of New Yorkers pay over 40 percent of all income taxes, proving huge benefits to everyone in our city and state. Paulson & Company and its employees have paid hundreds of millions in New York City and New York State taxes in recent years and have created over 100 high-paying jobs in New York City since its formation."

Wow! A hundred jobs, John! Paulson must be one of those "job creators" who need to be succored and coddled and generally pleasured for the benefit of all humanity!

And Steve Bartlett, the president of a racket called the "Financial Services Roundtable," which throws around lobbying cash in Washington in behalf of the biggest banking and insurance conglomerates, says:

"I don't think we see ourselves as the target. I think they're protesting about the economy."

Okay, Steve, convince yourself of that notion -- then explain to us why they're camped out on Wall Street and not Disneyland?

(Schwartz and Dash also note in their article that Bank of America recently paid out $11 million in severance pay to two hotshots, Sallie Krawcheck and Joe Price -- even their surnames denote money -- while laying off about 30,000 working slobs.)

Judging from Schwartz and Dash's reportage, the financial oligarchs whose power over the political economy is strangling the United States don't seem to understand just how lucky they are to be dealing with orderly, mature protesters who believe in the tenets of nonviolence. In any other historical epoch these same oligarchs might find themselves facing the gallows or a firing squad or a "re-education" camp. Those who find themselves on the wrong side of history often end up in precarious positions. Just ask Hosni Mubarak.

It would be funny if it weren't so damn sad when Erin Burnett set off on her new CNN show, OutFront, to straighten out those protesters by sending a reporter to inform one of the unwashed hacky-sackers that the bankers paid off the TARP (Troubled Asset Relief Program) with interest. But Ms. Burnett left out the fact that the banks had access to a far lower interest rate than the other 99 percent could ever get; and the banking conglomerates are still too big to fail; and they got a cool trillion dollars from the Federal Reserve to gamble with, and the Fed still holds billions in toxic securities. Burnett might have also acknowledged that the banks have paid out obscene bonuses despite the wreckage they left behind and that they "produce" nothing useful to society; or that they misallocated capital during the housing bubble and created enormous risks; or how they distort our nation's politics with big campaign donations and narrow lobbying activities (as well as the revolving door between government regulatory agencies and Wall Street firms); and she might inform her viewers about how they dumped the ruinous effects of their greed-based failures onto the wider society in the form of high unemployment and the gutting of the public sector with "austerity" measures that have slashed social services that used to be around to help make life a little bit better for the other 99 percent. But what do ya expect from a former CNBC "money honey"?

I might add that it was the bankers who left behind higher rates of child poverty and increased incidents of child abuse, suicides, and property crimes; and they left in their wake over-crowded classrooms, layoffs of teachers and child protective services workers and the closing of public parks, clinics, and homeless shelters; they've severely damaged once great systems of pubic higher education across the country, and they've ushered in a concerted assault against public employee pensions and their unions, even those of the "first responders" (police and firefighters) who went from heroes after 9/11 to goats after Wall Street got done with them. It's like living in a Frank Capra movie gone terribly wrong where his most evil antagonists win out in the end with control of the politicians, the newspapers, and the courts.

Yet the bankers, as quoted above, now want the rest of us to love them?

Not one teacher or police officer, social worker or firefighter should have been fired; not one public park closed; not one public school downsized; not one person working for the public sector canned because of the reckless failure of Wall Street's high rollers. Yet over 300,000 teachers have been fired in the last few years and another 200,000 public employees.

The financial oligarchs instead of pouring millions into "Super PACs" and lobbying efforts for special favors in Washington should be forced to contribute to a restitution fund (like BP did during the Macondo oil spill) to offset local layoffs of public employees and to reset underwater mortgages with principal reductions to current prices. The Occupy Wall Street people might want to pay a visit to John Paulson's home (and the homes of other oligarchs) until they pay into a restitution fund.

There's something inherently wrong with a political economy where those in power sell the people a bag of goods: Tax cuts for the rich and corporations; deregulation; "free trade" bills; wars and excessive military spending; slashing social programs. We were told these measures were for our own good. They would be helpful to the lives of the 99 percent. But they never work. Prosperity never "trickles down." And people are finally catching on. The housing bubble went too far. It destroyed too many lives and livelihoods to go unquestioned and unpunished, as Wall Street (and Washington) would like it.

Like the millions of families who have wisely chosen to walk away from terribly underwater mortgages lest they give up their entire life's earnings to Wall Street, millions of other people across the country and the world, who now have little to lose, are voting with their feet and lungs and bodies in full-throated protest declaring: "We Refuse to Pay for Your Crisis!"

 
 
 

Follow Joseph A. Palermo on Twitter: www.twitter.com/JosephPalermo1

In an admirable bit of reporting, Nelson Schwartz and Eric Dash of the New York Times did us all a favor by asking bankers, hedge fund and money managers what they think about the Occupy Wall Street p...
In an admirable bit of reporting, Nelson Schwartz and Eric Dash of the New York Times did us all a favor by asking bankers, hedge fund and money managers what they think about the Occupy Wall Street p...
 
 
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Social Construct
Go left, young man.
10:59 PM on 10/19/2011
Ahhh .... it's so darn comforting to know that some things remain exactly as they have since the inception of human society. Imagine a group of French royalty, or any royalty throughout history for that matter (whether it's a bloodline or some sort of other self-imposed placement into an elite, power holding group of people). Blaming the very population that is the base and funding of your power over them for their own condition is timeless. And, regarding historical accounts, a tad unwise?
02:02 PM on 10/19/2011
I work 3 blocks from the park, and let me tell you, most have no clue about anything.

It's basically a "I'm poor and don't have a job, so let's just hang out and not shower".

That said, some people down there do have a clue, and I'd gladly stand with those people if I didn't have a job servicing wall st. haha
12:16 PM on 10/19/2011
Police, fire and your local schools are primarily paid for by local property taxes within the state that you live. The Federal contribution is negligible by percentage spent in almost all of these institutions.Please try to be honest about this stuff, a lot of people have no idea what the Feds are actually paying for. If they did know, I am pretty sure they would prefer the money to be spent and managed locally as opposed to being sent to Washington and redistributed to the elite, their friends and potential voting blocks as payments to stay in office.
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HUFFPOST SUPER USER
ANuttyReader
11:38 AM on 10/19/2011
Arrogant people...
10:33 AM on 10/19/2011
If you want to keep having jobs outsourced, keep attacking financial services. This is just disgruntled people."

The President is working on outsourcing more jobs with his proposed new trade agreements. Corporate America and our politicians have betrayed us when it comes to jobs. If we had back those millions of jobs lost to outsourcing, more tax revenues would be generated, less unemployment checks going out. Less burden on the Government, which is less burden on the taxpayers.
iridium53
Semper Fi
10:10 AM on 10/19/2011
Restitution funds? That's funny.

The Venal 537 bailed them out, SecTreas lives to give them money and protect them, the AG outright protects them, Bernanke and Fed shovel them more money - all against he interests of the average American.

Don't hold your breath - the 537 corrupt, coin-operated corporate kleptocrats in Washington are bought and paid for.
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judgeholden79
You, Never? Did the Kenosha Kid?
10:09 AM on 10/19/2011
There's a great Frank Herbert quote:

Control coinage and the courts, and the rabble can have the rest.
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HUFFPOST SUPER USER
DocJoseph
A bleeding heart will heal; a cold heart will not
10:04 AM on 10/19/2011
Money in Politics is corrupting, tremendous income inequality is destabilizing, and an unfair system, rigged by the moneyed and favoring the same that causes income inequality is a travesty.

Now that I've said that, I feel better.

I wonder, though about the author's claim that "child abuse, suicides, and property crimes" are increased because of Wall Street. Property crimes makes sense. I'm not so sure about suicides and child abuse - or ingrown toenails.

But, then, wearing shoes longer might lead to unsanitary conditions that favor ingrown toenails, so I'll keep an open mind.
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HUFFPOST PUNDIT
Godweiser
The eyes have it.
09:56 AM on 10/19/2011
It's a Palace of Versailles outlook; ensconced safely in their luxury, surrounded by either flunkies or colleagues, they develop this very narrow worldview of what is going on and their role in it. The rest of us simply do not exist to them, even though we are the prey they savage when they export jobs to raise the stock price, cut jobs to raise the stockprice or otherwise destroy people's lives to raise the stock price. Think I'm kidding? Look at the run on Force Protection Inc; that caused the company to experience difficulty in delivering MRAPS to the military all so a broker could buy a new Maybach.
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lliberty4ever
Yeah- tell me another one !
09:49 AM on 10/19/2011
"Student loan Defaults top One Trillion dollars" was the headline elsewhere today.
When will these OWS protestors pay their bills ?
How about paying their fair share ?
10:40 AM on 10/19/2011
Well see, if you'd been paying any attention, you'd know that a lot of the OWS protesters are graduates with degrees who went into debt to get them, and now can't find jobs to pay them off.

In other words, they'll pay their bills when Oligarchs are forced out of the way of recovery efforts, and the unemployed given jobs. All 30 million of them.

And as the poor and middle class pay a much higher percentage of their income in taxes than the very rich, I must ask why you think it is WE who aren't paying our fair share? The rich have received all kinds of welfare. In fact, since very often there were absolutely no strings attached, what they received could far more appropriately be termed 'Handouts', with a capital 'H', than anything the poor has before, is now, or ever likely will receive.

The real burr for us is the fact that WE didn't destroy the economy and our government. The trust fund baby Handout recipients did. They got bailed out, and we got bent over the nearest heavy piece of furniture. All while being treated to a continual 'Let them eat cake!' diatribe, with the chutzpah to demand we like it?

Does the name 'Custer' mean anything to these people? They might want to go look that up...And perhaps go back over the Evil Overlord handbook again. They're doing it wrong.
10:41 AM on 10/19/2011
They will pay their bills when they can find jobs. A college degree doesn't guarantee you a job any more.
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HUFFPOST SUPER USER
jabailo
(Participant) Texeme.Construct()
09:48 AM on 10/19/2011
OWS needs to take the $300,000 they've collected so far and leverage it against a Government backed $1 Trillion dollar loan for "an investment on outdoor media that will transform the marketplace".

Then they need to pay their leaders a super high bonus from the loan...since there are no leaders, everyone gets a super high bonus.

Then when the loan money is gone, OWS should declare bankruptcy but ask for a $2 Trillion dollar stop gap bailout to cover the payments on the original loan.

But first, everyone will get another super high bonus.

In this way, OWS can achieve its goal...of making the 1% part of the 100%!
HUFFPOST SUPER USER
chswad
08:33 AM on 10/19/2011
The middle class will suffer as long as our lawmakers are allowed to take bribes from big money.
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HUFFPOST SUPER USER
wallyone
08:17 AM on 10/19/2011
They got the TARP money and then refused to loan it out to keep businesses afloat. Shameful.

Those interviewed obviously live in a bubble, surrounded by their own kind.
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HUFFPOST SUPER USER
webbandit
USAF Veteran
07:33 AM on 10/19/2011
Those Wall st people with the fancy titles and reserved parking keep trying to sell us this crap about Blame Washington for everything,last time I heard If you pulled the trigger during a bank heist you get prosecuted also not just the mastermind.Washington and Wall st are to blame in that regard.Politicians that are bought and payed to give the green light to these criminal activities should be held accountable but the trigger man should be held accountable also.Wall st you are not innocent ,this argument about the people being gullible among other things is just a smoke screen a distraction.Real people are feeling real pain!!!!!.........suffering..Trade places? I didnt think so.
lastpost
see biography
06:15 AM on 10/19/2011
"gullible and unsophisticated"
No wonder the wonders in Wall Street can’t classify their occupiers correctly. They can’t even explain how the mechanism they are intimately involved in on a daily basis, actually operates. If they could, do you suppose they would have seen this disaster developing and done nothing constructive to prevent it? Something that would have required an understanding of what crashed the system last time. Plus the diligence to ensure that the safeguards subsequently installed weren’t bypassed. Gullible, Unsophisticated? Or Green Back(ward).