Shameful Bankers: Time for a Revolution
Barack Obama has finally realized that, yes, bankers' behavior is "shameful," "outrageous" and the "height of irresponsibility." The solution: he and Treasury Secretary Timothy Geithner will have direct conversations with corporate leaders to make the point. That's nice, but it's obviously not going to cut it. Now that US banks are essentially nationalized, what would work is for bank employees to be treated as federal government workers for the purposes of compensation and ethical behavior. And the same should apply to all businesses in which the government has had a significant hand in bailing out formerly private-sector companies.
Presumably no one, except for the corrupt bankers themselves, will have the chutzpah to raise the prospect of a recruiting drought for qualified financiers. Frankly, it is utterly impossible to find one senior banker still in place who has not demonstrated breathtaking incompetence and crooked greed. Those former superstars Robert Rubin, John Thain and Richard Fuld are just the tip of an iceberg of gross ineptitude and demonic lack of morality: their colleagues and subalterns deserve as much reproach as their leaders, and should be grateful to be employed at any salary. If they believe they can day-trade their way to an income that can compete with federal salaries, by all means they should: no one is forcing them to stay. Really, no one should even be asking them to stay.
Many of us opposed the banking bailout because it was clear there were no checks and balances on what amounted to a gross subsidy of financial corporations' bloated, unethical operations. How was this clear? Because we know these people, the Thains and the Fulds and the Rubins of this world: you could not come between them and a measly $1 million if your life depended on it. What were the odds that they would not plunder the federal subsidies in the same way they plundered their stupid shareholders represented by complicit boards? Laughably low, as anyone with an even remote knowledge of these people's personal and business behavior knows full well. Government leaders of both parties were frighteningly naive to think that bankers would do the right thing: they became rich by doing the wrong thing, and plan on staying rich by doing the wrong thing. They don't know any other way and even if they did, they would deem the returns too low: too complicated and not lucrative enough. Goldman Sachs alumni, with Rubin and Thain as their mascots, deserve particular scorn, not because they are particularly greedy, but because they successfully sold themselves as guardians of a vanishing ethic, gentleman and lady bankers who went back and forth between government and the private sector, dispensing their sagacity to mere mortals. That they become extraordinarily wealthy in the process was just a by-product of their benevolence, not the goal. What a joke.
Even now that it is clear that the misbehavior is not relegated to a few bad apples but to the cream of the banking crop, who are pillaging taxpayer and investor funds, the best the government can do is to "talk to them"? Could this have anything to do with the dreadfully incestuous relationship between Washington and Wall Street: whether it is the shockingly high contributions from the financial industry greedily amassed by Senator Charles Schumer, or the ties that bind Geithner to Rubin, there is no way these two, to name just them, are going to properly regulate their masters. There are a very few in Washington who seem to get it. Senator Russ Feingold, for instance, was on to something when he voted against Geithner's nomination: he doesn't trust Obama's nominee as far as he can throw a dollar bill, and neither should he. Rep. Barney Frank seems to have finally seen the light, but why did it take $350 billion of our money flushed down the reeking drains of Wall Street for him to realize that the TARP bill he pushed so forcefully was catastrophically flawed in its lack of oversight, and in its acceptance that the corrupt and/or inept banking executives stay in place?
The United States is not a country for revolutions, its inception notwithstanding, nor is it one to make forceful, sudden changes. Now, however, would seem as good a time as any for an insurrection, not against the new president or the federal government in which we still mostly have confidence despite the meek response to the larceny that is occurring in the financial industry. No, the insurrection should be against the brainless version of capitalism that has made its home in the United States and, increasingly, in Western Europe, with the resulting economic disasters of which we are only just seeing the beginning. Specifically, let's insist with all our pent-up anger that those industries that are failing either be allowed to fail or be nationalized, and that their leaders be fired and brought to justice. For, in truth, their behavior has been criminal in its misuse of investor and government funds. The injury they have caused the country cannot be repaired quickly, but they can certainly be made to suffer where it matters most: why not confiscate every dollar they own, and their families own? This money is owed to us not under a Marxist-Leninist belief (although that is looking more appealing every day) but because they actually, directly stole it.
This does not mean that the rest of us can feel absolved just because we hang (metaphorically-- at least for now) a bunch of financiers drunk with greed and stupidity. While there are many victims in the colossal Ponzi scheme that is the American economy, few of these victims have not in some way been complicit, if only because many of us blissfully ignored the obvious: that we could not afford what we were buying; that get-rich schemes are, just that, schemes; that the lack of investment in education, transportation and the environment would hurt all of us; that all boats were not lifted in the recent economic expansion (in fact, very, very few boats were lifted). Hopefully after we banish the current crop of financial executives forever, we can move on to understanding our own responsibility, and take charge of the government in ways that we have been too lazy or scared to do in the past. And insist as angrily and forcibly as we legally can that the time has come for an American revolution, one in which our schools, our health and our environment take precedence over all else. And that those who stand in our way will not be treated as kindly as the bankers have been.
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Paul, your rage has and will find it's echo in all of us, without a doubt. I agree that all these financiers and (b)ankers need to be given abject lessons. As a socialist, I had been screaming about their obscene paypackets (in Australia) for years, and I am in one sense gratified that more people are coming around to my point of view, although I deeply regret the reason for that change of mind. Other than investing in tumbrils and sharpened plows I think every single person here who has paid employment ought to go out and join the relevant Union for their vocation. There is no way that individual action can change these monsters, but the poweer of a revitalised Union will be able to do things that little people can't. If your Unions have people like Richard Trumka in positions of authority, believe me you have a head start.
What we have here is a tiny minority hoarding our treasury to themselves. Waiting to buy massive chunks of real estate cheap after watching the rest of us get flushed down the toilet.
Unless we as a country can find some way to blow the doors off the vaults of the C E O's off-shore accounts, and redistribute all the capital you and created with the sweat of our labor, which the big bosses have sucked up for themselves; until that happens we will continue to under-fund our common, social network, schools, childcare, healthcare, elderly assistance etc.
We socialize medical research by giving out huge government grants to "help find the cure". Then all the profits for the new drug are squirled away for golden parachutes, repeated ad naseum in all the big industries. Why else do think oil companies which make multi billion dollar profits, still receive billions of dollars in tax payer dollars, all the while handing out billion dollar bonuses? We need to realize these as criminal acts against you and me.
If they didn't work for it, didn't really earn, or deserve it, and they're not really worth it, then they are thieves and have robbed us. They have in some cases been handed this money directly form the treasury dept and then transfered our money straight into their account and been asked to do nothing for it, it is criminal on the part of both parties, why can't most Americans see this?
It is time for a working American consumer style revolution!!!
It is time to investigate Bernanke and Paulson through a Grand Jury process to see why they handed over TARP funds, open drive through loans windows (want fries with that Mr. Banksta?), with no transparency or rules. These two are gangstas working for the Bush Crime Family and big time financial hoods. With over a trillion already handed out our GDP keeps falling. It is now at an annual rate of 3.8 missing the high mark of 5-6. OOPPPS! Everything is frozen.
The America people know exactly now, how to control this government and the thieves inside the banks and corporations and that is to STOP SPENDING EXCEPT FOR WHAT IS ESSENTIAL. Working America controls the gig, but no one is paying attention to it. By the working class Americans saying NO to borrowing, while wages are tanked, investments are dead, and jobs are overseas, we can demand Obama follow a populist fix to the disaster, with investigations beginning with Bush and Cheney on down to the bankers and financial scammers, WE JUST SHOULD SAY NO TO THE THIEVES GETTING THEIR WAY AND POCKETING THE CASH, WHICH THE TREASURY GAVE AWAY IN EXCHANGE FOR THEIR GARBAGE TOXIC SECURITIES.
WHEN WILL AMERICA WAKE UP????
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'the brainless version of capitalism'
This is key.
Some of the bankers errors are not just objectionable on the grounds of making bad use of government and taxpayers' money, but as you mention also stockholders.
What this means, in short is: the bankers have sinned against capitalism itself. And not once in the 500 hundred years in which capitalism has existed in one way or another, has this been so utterly evident and not once were the excuses made more lame.
Bankers can no longer be given the benefit of the doubt that they represent the understanding of the reward-for-risk metric. This is the bottom line. They need to first RE-EARN that trust. And this will take at least years on average, with room for acceleration for those who have not yet made entire fools of themselves.
Paul,
You say:
"...if only because many of us blissfully ignored the obvious: that we could not afford what we were buying; that get-rich schemes are, just that, schemes; that the lack of investment in education, transportation and the environment would hurt all of us; that all boats were not lifted in the recent economic expansion (in fact, very, very few boats were lifted)."
Thing is, many of us DID understand that we couldn't afford what we NEEDED to buy, but NOBODY cared enough to do something about the fact that income and wealth disparity in this country had surpassed it's previous high records set in 1929.
Few boats have been lifted since the 70s. So this is NOT a new thing; it only looks new because all of the criminal activity on Wall Street finally exposed it for all to see. Middle class boats have only stayed afloat during the past 30 years because of savings depletion, debt expansion, working longer hours, and working more than one job.
Every citizen should be made to take a Stratification 101 course . . . especially those at the bottom of the social class ladder, who let neocons brainwash them into thinking that things like progressive taxation, unionization, and equal pay = socialism.
My credit card company raised my APR from 7% to 25%, although, I've never been late in over 15 years; I told them I was not paying them a 25% APR, and I meant it. I've had it with the banks and I'm tired of being screwed. There are getting taxpaper TARP money to clean up their debts so why are they still raising interest rates. Because they can.
I agree with Paulk Jenkins whioleheartedly and wholeheadedly. I am just trying to figure out where to start. I was not an irresponsible consumer or get-rich-q
All of the letter-writing I have done in the past 8 months or so has come to naught. Obama himself is proving to be tone deaf and more interested in talk and everybody getting along than he is in
enforcing what is right. So, maybe a tax revolt, or a French-style insurrection with protests and strikes?
The revolution that the bankers fear, which is taking a distinct shape around a historic theme, is this.
Greenbacks.
Plain and simple.
Here's what the international bankers said after Lincoln refused their usurious 36 percent interest rates, and proceeded with a Treasury system issue of United States Notes to pay the soldiers.
""If this mischievous financial policy (issue of Lincoln Greenback notes) shall become indurated down to a fixture, then that Government will furnish its own money without cost. It will pay off its debts and be without debt. It will have all the money necessary to carry on its commerce. It will become prosperous without precedent in the history of the world. The brains and the wealth of all countries will go to North America. That government must be destroyed or it will destroy every monarchy on the globe. ""
Actually written by their scribes at the Times of London, this message shows the true revolutionary nature of Lincoln's Greenbacks money system.
It will destroy every monarchy on the globe.
We must replace the debt-money system of the private federal reserve bankers who have controlled the economy and the wealth of the country, in every respect, for almost one hundred years.
The revolution with a pen.
We fought once for the right to have our own sovereign money system.
It is a right we have right now.
The revolution will be to exercise that right.
Greenbacks.
People are so blind. They don't realize we live in an Oligarchy -- an Aristocracy really and the ones with power are the ones that have power. Previously, they were called Kings, and Queens and Dukes, etc., and when the Peasants and Merchants wouldn't pay, they would send out their armies to extract payment.
We're lucky that in the current climate the Army has not been called down on us from the financiers with e power in their hands. Insurrection you say? Revolution you say? Don't use those words, because they will react with violence then. The only known time that the common people managed to overthrow the Aristocracy was when the people of France started a little thing called the French Revolution. Yes, I know, we Americans had our Revolution too, but that was mostly the shelf -economical- interest of far away lands. Are we up for another French Revolution?
it's time for a revolt ! Americans have become complacent, it's like being in an abusive relation. We should organize a march on Wall Street and Washington and call out these crooks. People take your power back and your country and demand some accountability. I am totally disgusted with these criminals.
What a trip. Here are my thoughts.
As consumers, we hold the power in this country. Most have credit cards, mortgages car payments.
If just 20 percent of us stopped paying them it would the system to the brink. It is then and only then that we would have them. They would lower credit card interest rates to 3 percent for two years and never be allowed to raise them above 10 percent. We would put a hold on credit scores, they can not and will not get back at us for our actions. I I would recommend that we not take that kind of action with our credit unions. We are after all members there and have much more say in their operations. Our banks should be operated in such a fashion. Things are out of control. With this non violent act we bring the greedy dung beetles to their knees.
I agree.
I totally agree.
Last night (thursday) BBC America interviewed Stephen Roach - Chairman at Morgan Stanley Southeast Operation- about the 14.8B bonus. Of course he never answered the question, but said there were many groups responsible for the economic downfall. What (of course) he failed to state was that that there he was in Davos Switzerlan
Now we are hearing that the gov't (US) are going to take over all their "toxic assets"...
As long as WE continue to give them money and reward their bad behavior, they will continue to be astoundingly arrogant. I am moving my money out...to a credit union or local bank that has NOT received TARP money!
I am with you!!!
Campaign contributions pull alot of strings-----didn`t this used to be called "BLACKMAIL"?
Extortion!
Thank you, Paul Jenkins for voicing what has gone unsaid for too long. Group Think and diffusion of responsibility have helped perpetuate the outrageously unethical practices in the U.S. financial industry. It seems as if, we, as a society, collectively became lulled into an acceptance of the notion that we are mere laypeople without the expertise to understand the complexity of Wall Street. Thus we have been ignoring common sense and logic and we have allowed Wall Street "experts" to create elaborate investment schemes and pay-scales that truly systematically bilk the everyday investor--by design, even when the system is functioning "normally.
Paul Jenkins--you are the first to come out and put the entire collapse in the laps of the fraudsters, which is where it belongs!! I have been writing about this for a year in my blogspot. And finally, I am seeing it here, too. Thank you!!
This HAS been a 30 year Ponzi Scheme brought to us by the Reagan Revolutionaries and Greenspan, which finally landed in the lap of Little Boy Bush, who accelerated this economic collapse by allowing the Bankstas and Fraudstas within the system and inside government to go forward and steal from the treasury and everyone else with their financial investment con game.
Over 30 years, working Americans have been kept under paid in order to borrow money to fuel their spending needs and wants. They were encouraged to spend. And, they "invested" in a Ponzi Scheme retirement system, which eventually collapsed, but still made many fraudsters rich.
Jobs were sent overseas to keep working Americans down, while enriching the financial sector's Ponzi Schemers, yet, at the same time, the government ruled mostly by Republicans, allowed the nation to reach virtual bankruptcy in the name of greed.
Paul--keep up your writing!!!
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Take action, thumb your nose. Stop paying your credit cards for as long as you like. They would not dare lower your credit rating, it would be two massive and plunge the economy into the greatest depression ever. All of us can rise up and get control back. That is something they don't want us to think of. They call everyday saying "you don't want to ruin your credit rating do you". I say at this point who cares. But think if there were not many people with a good rating how could anything happen?
I do believe they would have to get a handle and start over and dare not strike back at us. They need us to stay in business and to stay rich.
I am with you there. I could support that.
I also support the rejection of the entire debt-money system of the private bankers that control this country.
The solution is a new money system.
Plain and simple.
Debt-free at issue.
Credit card debts become a trivial issue to deal with.
Read Volcker's Group of Thirty Economists Report on why we need to inject vast quantities of taxpayer funds as a bailout/stimulus combo.
The debt money system is insolvent.
It is uncapable of generating sufficient new debt-money to pay the interest on the old debt money. The debt-money system never produces money to pay the interest.
THAT is the ponzi scheme.
But if we're going to go the wrong way on the bailout, we can still get a decent deal for those who are willing to pay their credit card debts.
The financial system cannot continue without the American taxpayer footing the bill.
We the taxpayers demand a restructuring of ALL credit card debt.
Unsecured, affordable loans at a rate of interest one percent above the bailout financing rate.
Financial stability and consumer spending power.
Or, we could just refuse to pay.
Either way, I'm there.
I love what I saw on Lou Dobbs tonight. I didn't get to see all of the story but got the drift of it which was; a woman was put into a sub-prime mortgage even though she put 40K down on a 147k home. Now that her monthly payments have now doubled she can’t pay, is loosing her home and is headed for her new street of the homeless. But the lender, Wells Fargo can't find her mortgage - because it was sold to another bank, so the woman is going to exercise squatting rights and stay in the house anyway. No mortgage - no foreclosure.
I think that is what all the people should do that are being forced out of their homes to live on the street - to just stay in their homes - squat and stay put.
I would like to join the revolution Paul - not against Pres. Obama but against the banks and irresponsible mortgage lenders. What can I do? This is something I could really get behind. I hate this injustice! It is not only shameful but also immoral.
get all us to join you and stop payment on credit cards all at once and watch the power return to the people.
Where in the US Constitution does it say that we are a capitalist country?
Where does it say that we are a free market country?
Why can't the government confiscate ALL of the property of every executive at the banks, investment banks, credit card companies and mortgage companies and all of their feeder firms -- and I mean ALL of their property including that hidden in their wives, children's and relatives accounts -- domestic and hidden in foreign tax havens -- to pay down the money we've lent their companies?
Inquiring minds would like to know....
Because as you are posing it------it is in the form of a question(a negative question at that). If you want to know why they can't ----then they will tell you why they can't. Wall street and the banks didn't just ask for a bailout. They proposed it as the lesser of two evils (is the light coming on yet?). Congress will do what is demanded of them. Unless you are prepared to demand-stay at home(pull your belt tighter, do without, huddle under the blankets to stay warm, if you can afford--watch the "lifestyles of the Rich and Famous-with your money, and folow the news presenters as to how you should be reacting to all this. OR...... Get your self a bailout. Got credit? Run it all up. Every last dime. Buy those things that will enable you to be self sufficient. If you hide the wealth like Wall Street exec's, bankers,Madoff, and politicians-- you'll be on equal ground. Threaten bankruptcy or inability to pay your bills and demand help from the fed. If you don't have money to pay taxes or the banks---the government fails. Only then will the government act. Or....Stay at home,watch "lifestyles, and make rat soup.
Right on just what I have saying. Get the Chases,Capital ones and citibanks off our backs.
What can we do specifically, besides writing our congressmen and expressing our rage, which many of us have done?
Take to the streets? Unfortunately, Americans are lazy and don't want to be bothered. Give us specific things do do! Please!
Guess what. Americans who lose their jobs and are out of work for long periods of time will find it increasingly EASIER to take to the streets if they nor family members can find jobs!
The American public felt that they could ignore their civic duties and that things would still somehow work out -WRONG!!!
Nellrk, I am in complete agreement with you. Most, if not all, American citizens hate this bank bail out, Ponzi Scheme that has come to light.
I think any of us are willing to do what we need to do to save this nation (The Constitution); but we have two parties only "representing" us..... which are virtually the same in that they either don't care about the citizens or are oblivious to them.
We have no single good "idea" if you will, to organize ourselves with.
I'm afraid we'll have to come up with the answers ourselves: stock up on food, medicine, build a hole in the ground to live in? WTF? Has it really come to this? Sadly, I think it has.
Alas, I still go to the job I am thankful to have everyday, put my earnings in a bank and hope for the best. The "best" keeps getting worse every day.
Greenbacks.
Your revolution with a pen.
It is up to the people to resurrect the ideals of those who have supported a public money system for the entire life of this country.
The unregulated private bankers and their investment firm cousins hide the actual structure of the financial system, to the point where they readily admit that none of them know what any of it is really worth.
They have run the financial system and the economy for almost a hundred years, and this is where it came down to.
DO NOT BEGIN AGAIN !!
The right to create and control the nation's money system and money supply must be restored to the government of the people, that same government that gave that right to the private bankers, obviously in error.
The power to create and control the nation's money must reside with the government of the people.
We are the people.
The taxpayers.
The citizens.
It's OUR money.
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