Rather than Hope and Change,
Obama is delivering corporate socialism to America, all while claiming he’s
battling corporate America. It’s corporate welfare and regulatory robbery—it’s
Obamanomics.
“Records show that four
out of Obama's top five contributors are employees of financial
industry giants - Goldman Sachs ($571,330), UBS AG ($364,806),
JPMorgan Chase ($362,207) and Citigroup ($358,054).”
Why
aren’t the Wall Street criminals prosecuted?
In
May 2012, only days after JPMorgan Chase’s Jamie Dimon revealed that his bank
had lost billions of dollars in speculative bets, President Barack Obama
publicly defended the multi-millionaire CEO, calling him “one of the smartest
bankers we’ve got.” What Obama did not mention is that Dimon is a
criminal.
JPMorgan
is not the exception; it is the rule. Virtually every major bank that operates
on Wall Street has settled charges of fraud and criminality on a staggering
scale. In 2011, the Senate Permanent Subcommittee on Investigations released a
630-page report on the financial crash of 2008 documenting what the committee
chairman called “a financial snake pit rife with greed, conflicts of interest
and wrongdoing.”
These
multiple crimes by serial lawbreakers have had very real and very destructive
consequences. The entire world has been plunged into an economic slump that has
already lasted more than five years and shows no signs of abating. Tens of
millions of families have lost their homes as a result of predatory mortgages
pushed by JPMorgan and other Wall Street banks.
INCEST! The
case of bankster-owned Barack
Obama and
crony Jamie Dimon of JP
MORGAN…
their looting continues!
Why
aren’t the Wall Street criminals prosecuted?
In
May 2012, only days after JPMorgan Chase’s Jamie Dimon revealed that his bank
had lost billions of dollars in speculative bets, President Barack Obama
publicly defended the multi-millionaire CEO, calling him “one of the smartest
bankers we’ve got.” What Obama did not mention is that Dimon is a criminal.
JPMorgan
is not the exception; it is the rule. Virtually every major bank that operates
on Wall Street has settled charges of fraud and criminality on a staggering
scale. In 2011, the Senate Permanent Subcommittee on Investigations released a
630-page report on the financial crash of 2008 documenting what the committee
chairman called “a financial snake pit rife with greed, conflicts of interest
and wrongdoing.”
These
multiple crimes by serial lawbreakers have had very real and very destructive
consequences. The entire world has been plunged into an economic slump that has
already lasted more than five years and shows no signs of abating. Tens of
millions of families have lost their homes as a result of predatory mortgages
pushed by JPMorgan and other Wall Street banks.
Amid poverty wages
and tax cuts for the rich
"This
decades-long ruling class offensive was accelerated in response to the 2008
financial crisis. President Barack Obama oversaw the channeling of trillions of
dollars to the banks and financial markets in order to pay off the debts of the
bankers and speculators, whose reckless and criminal activities had led to the
crisis, and make them richer than ever. At the same time, he imposed a
restructuring of the auto industry based on a 50 percent across-the-board pay
cut for new-hires and an expansion of temporary and part-time labor,"
The devastating human cost of the plundering of society by the
corporate-financial oligarchy is registered in declining life
expectancy, rising mortality and record suicide and drug addiction
rates.
BARACK
OBAMA AND HIS CRONY BANKSTERS set themselves on America’s pensions next!
http://mexicanoccupation.blogspot.com/2015/04/obamanomics-assault-on-american-middle.html
The
new aristocrats, like the lords of old, are not bound by the laws that apply to
the lower orders. Voluminous reports have been issued by Congress and
government panels documenting systematic fraud and law breaking carried out by
the biggest banks both before and after the Wall Street crash of 2008.
Goldman Sachs, JPMorgan Chase, Bank of America and every
other major US bank have been implicated in a web of scandals, including the
sale of toxic mortgage securities on false pretenses, the rigging of
international interest rates and global foreign exchange markets, the
laundering of Mexican drug money, accounting fraud and lying to bank
regulators, illegally foreclosing on the homes of delinquent borrowers, credit
card fraud, illegal debt-collection practices, rigging of energy markets, and
complicity in the Bernie Madoff Ponzi scheme.
Sanders called JPMorgan’s CEO
America’s "biggest corporate socialist"
— here’s why he has a point
Sen. Bernie Sanders called JPMorgan CEO Jamie Dimon the “biggest corporate socialist in America today” in recent ad
PAUL ADLER
FEBRUARY 13, 2020 9:59AM (UTC)
Sen. Bernie Sanders called JPMorgan Chase CEO Jamie Dimon the "biggest corporate socialist in America today" in a recent ad.
He may have a point — beyond what he intended.
With his Dimon ad, Sanders is referring specifically to the bailouts JPMorgan and other banks took from the government during the 2008 financial crisis. But accepting government bailouts and corporate welfare is not the only way I believe American companies behave like closet socialists despite their professed love of free markets.
In reality, most big U.S. companies operate internally in ways Karl Marx would applaud as remarkably close to socialist-style central planning. Not only that, corporate America has arguably become a laboratory of innovation in socialist governance, as I show in my own research.
Closet socialists
In public, CEOs like Dimon attack socialist planning while defending free markets.
But inside JPMorgan and most other big corporations, market competition is subordinated to planning. These big companies often contain dozens of business units and sometimes thousands. Instead of letting these units compete among themselves, CEOs typically direct a strategic planning process to ensure they cooperate to achieve the best outcomes for the corporation as a whole.
This is just how a socialist economy is intended to operate. The government would conduct economy-wide planning and set goals for each industry and enterprise, aiming to achieve the best outcome for society as a whole.
And just as companies rely internally on planned cooperation to meet goals and overcome challenges, the U.S. economy could use this harmony to overcome the existential crisis of our age — climate change. It's a challenge so massive and urgent that it will require every part of the economy to work together with government in order to address it.
Overcoming socialism's past problems
But, of course, socialism doesn't have a good track record.
One of the reasons socialist planning failed in the old Soviet Union, for example, was that it was so top-down that it lacked the kind of popular legitimacy that democracy grants a government. As a result, bureaucrats overseeing the planning process could not get reliable information about the real opportunities and challenges experienced by enterprises or citizens.
Moreover, enterprises had little incentive to strive to meet their assigned objectives, especially when they had so little involvement in formulating them.
A second reason the USSR didn't survive was that its authoritarian system failed to motivate either workers or entrepreneurs. As a result, even though the government funded basic science generously, Soviet industry was a laggard in innovation.
Ironically, corporations — those singular products of capitalism — are showing how these and other problems of socialist planning can be surmounted.
Take the problem of democratic legitimacy. Some companies, such as General Electric, Kaiser Permanente and General Motors, have developed innovative ways to avoid the dysfunctions of autocratic planning by using techniques that enable lower-level personnel to participate actively in the strategy process.
Although profit pressures often force top managers to short-circuit the promised participation, when successfully integrated it not only provides top management with more reliable bottom-up input for strategic planning but also makes all employees more reliable partners in carrying it out.
So here we have centralization — not in the more familiar, autocratic model, but rather in a form I call "participative centralization." In a socialist system, this approach could be adopted, adapted and scaled up to support economy-wide planning, ensuring that it was both democratic and effective.
As for motivating innovation, America's big businesses face a challenge similar to that of socialism. They need employees to be collectivist, so they willingly comply with policies and procedures. But they need them to be simultaneously individualistic, to fuel divergent thinking and creativity.
One common solution in much of corporate America, as in the old Soviet Union, is to specialize those roles, with most people relegated to routine tasks while the privileged few work on innovation tasks. That approach, however, overlooks the creative capacities of the vast majority and leads to widespread employee disengagement and sub-par business performance.
Smarter businesses have found ways to overcome this dilemma by creating cultures and reward systems that support a synthesis of individualism and collectivism that I call "interdependent individualism." In my research, I have found this kind of motivation in settings as diverse as Kaiser Permanent physicians, assembly-line workers at Toyota's NUMMI plant and software developers at Computer Sciences Corp. These companies do this, in part, by rewarding both individual contributions to the organization's goals as well as collaboration in achieving them.
While socialists have often recoiled against the idea individual performance-based rewards, these more sophisticated policies could be scaled up to the entire economy to help meet socialism's innovation and motivation challenge.
Big problems require big government
The idea of such a socialist transformation in the U.S. may seem remote today.
But this can change, particularly as more Americans, especially young ones, embrace socialism. One reason they are doing so is because the current capitalist system has so manifestly failed to deal with climate change.
Looking inside these companies suggests a better way forward — and hope for society's ability to avert catastrophe.
Paul Adler, Professor of Management and Organization, Sociology and Environmental Studies, University of Southern California
This article is republished from The Conversation under a Creative Commons license.
JPMorgan Chase records the biggest profit of any bank in US history
JPMorgan Chase, the most valuable private bank in the world,
made $36.4 billion in 2019, the biggest annual profit of any bank in American
history. The news, reported Tuesday, sent the company’s stock up by 2 percent.
In the fourth quarter of 2019, the company took in $8.5 billion, also a record,
making it the tenth largest publicly traded company in the world, with a market
cap of $437 billion.
JPMorgan Chase’s record profits were joined by Morgan Stanley,
which also reported both record profits and record revenues for 2019, sending
its stock price surging 6.6 percent on Thursday.
News of these record gains came as the six largest US banks
revealed that they saved a combined $32 billion last year from President Donald
Trump’s 2017 corporate tax cut. The tax windfall was up from 2018 for all but
one of the banks. JPMorgan’s tax cut went from $3.7 billion in 2018 to $5
billion last year.
At Wednesday’s signing ceremony for the phase one trade deal
with China, attended by an array of corporate executives, Trump turned to Mary
Erdoes, a top executive at JPMorgan Chase. Calling the bank’s earnings report
“incredible,” he joked, “Will you say, ‘Thank you, Mr. President,’ at least?”
The tax cuts for the corporations and the rich,
enacted with only token opposition from the
Democrats, are only one factor in the surge
in profits over the past year. When stocks
plunged at the end of 2018, Trump stepped
up his demand that the Federal Reserve
reverse its policy of gradually raising interest
rates to more normal levels, following years
of near-zero rates in the aftermath of the 2008
financial crisis. Acting as the mouthpiece of
Wall Street, he demanded that the Fed begin
cutting rates once again in order to pump
more cash into the financial markets.
Fed Chairman Jerome Powell dutifully complied, cutting interest
rates three times in 2018 and assuring the markets that he had no intention of
raising them again any time soon. Then, beginning in the late fall, the Fed
began pumping tens of billions of dollars a week into the so-called “repo”
overnight loan market, resuming the money-printing operation known as
“quantitative easing.”
This de facto guarantee of unlimited public funds to backstop
stock prices has produced record highs on all of the major US indexes, sending
billions more into the private coffers of the rich and the super-rich.
These measures are a continuation and intensification of
policies carried out on a bipartisan basis for four decades to redistribute
wealth from the working class to the corporations and the financial elite. They
have effected a fundamental restructuring of class relations in America,
drastically lowering the social position of the working class. Decent-paying,
secure jobs have been wiped out and largely replaced by poverty-wage,
part-time, temporary and contingent employment—the so-called “gig” economy
exemplified by corporations such as Amazon and Uber.
This decades-long ruling class offensive was accelerated in
response to the 2008 financial crisis. President Barack Obama oversaw the
channeling of trillions of dollars to the banks and financial markets in order
to pay off the debts of the bankers and speculators, whose reckless and
criminal activities had led to the crisis, and make them richer than ever. At
the same time, he imposed a restructuring of the auto industry based on a 50
percent across-the-board pay cut for new-hires and an expansion of temporary
and part-time labor.
The United Auto Workers (UAW) has actively participated in this
process, enshrining the new “flexible” labor system in sellout contracts in
2015 and 2019. This template of expendable, benefits-free labor has become the
new norm for labor relations across the country and throughout the world.
Meanwhile, state, local and federal government programs have
been dramatically slashed. Education, housing, Medicaid and food stamps have
been particularly hard hit. This process has been accelerated under Trump,
along with the removal of occupational safety and environmental regulations,
with no opposition from the Democrats, who represent sections of the financial
elite and wealthy upper-middle class.
The devastating human cost of the plundering
of society by the corporate-financial oligarchy
is registered in declining life expectancy,
rising mortality and record suicide and drug
Institution found that 53 million people in the US—44
percent of
all workers—“earn barely enough to live on.” The study found
that
the median pay of this group was $10.22 per hour, around
$18,000 a year. Thirty seven percent of those making $10
an
hour have children. More than half are the primary earners
or
“contribute substantially” to family income.
Similarly, a Reuters report from 2018 found that the average
income of the bottom 40 percent of workers in the United States was $11,600.
A recent study by Trust for America’s Health found that in
2017 “more than 152,000 Americans died from alcohol- and drug-induced
fatalities and suicide.” This was highest number ever recorded and more than double
the figure for 1999. Among those in their 20s and early 30s, the prime working
life age, drug deaths have increased more than 400 percent in the last 20
years.
At the other pole of society, the Dow Jones Industrial index is
now double what it was at its peak in 2007, prior to the implosion of the
financial system. Between March 2009 and today, the Dow has risen from 6,500 to
over 29,000. The stock market, buttressed by central bank and government
policy, has become the central instrument for funneling wealth from the bottom
of society to the top. As a result, the top 10 percent of society now owns
about 70 percent of all wealth, whereas the bottom 50 percent has, effectively,
nothing.
In the midst of this orgy of wealth accumulation at the very top
of society, every demand of workers for jobs, decent pay, education, housing,
health care and pensions is met with the universal response: “There is no
money.” Hundreds of thousands of teachers have struck over the past two years
to demand the restoration of funds cut from the public schools and substantial
increases in pay and benefits. None of their demands have been met. The same
applies to auto workers who struck for 40 days last fall to demand an end to
two-tier pay systems and the defense of jobs.
JPMorgan’s $36.4 billion profit in 2019 is more than half the
education budget of the US federal government.
Meanwhile, Americans are deeper in debt to JPMorgan and the
other banks than at any time in history. Collective consumer debt in the United
States approached $14 trillion last year. Credit card debt has surpassed $1
trillion for the first time. Auto debt is at $1.3 trillion and mortgage debt is
now $9.4 trillion. Student loan debt has increased the fastest, surging from
$500 billion in 2006 to $1.6 trillion today.
These are the conditions, rooted in the historical bankruptcy
and crisis of the capitalist system, that have sparked a global upsurge in the
class struggle and the growth of anti-capitalist and pro-socialist sentiment.
The past year has seen a dramatic expansion of working class struggle that is
only a glimpse of what is to come. India, Hong Kong, Mexico, the United States,
Puerto Rico, Lebanon, Iraq, France, Chile and Brazil are only some of the
places where mass struggles have erupted.
What is becoming increasingly clear to hundreds of millions of
people around the world is that the social problems confronting humanity in the
21st century—poverty, debt, disease, global warming, war, fascism, the assault
on democratic rights—cannot be solved so long as this parasitic and
oligarchical financial elite continues to rule. The turn is to the American and
international working class—to unite, take power and seize control of the
wealth which it produces to ensure peace, prosperity and equality for all people.
Barack Obama is rather typical of the
Wall Street insiders who comprise a cabinet and White House team that is filled
with multi-millionaires, presided over by a president who parlayed his own
political career into a multi-million-dollar fortune.
Banks, hedge funds and other financial
firms lavishly backed Barack Obama his presidential bid, giving him
considerably more than they gave to his Republican opponent, Senator John
McCain.
Trump criticized Dimon in
2013 for supposedly contributing to the country’s economic
downturn. “I’m not Jamie Dimon, who pays $13 billion to settle a case
and then pays $11 billion to settle a case and who I think is the worst
banker in the United States,” he told reporters.
“The response of the
administration was to rush to the defense of the banks. Even before coming to
power, Obama expressed his unconditional support for the bailouts, which he
subsequently expanded. He assembled an administration dominated by the
interests of finance capital, symbolized by economic adviser Lawrence Summers
and Treasury Secretary Timothy Geithner.”
Practically every cabinet appointee of Obama’s has close
personal connections to the ruling class, many having come directly from
corporate boardrooms. Under Obama’s watch not a single executive at a major
financial firm has been criminally tried, much less sent to jail, for their
role in the financial crisis.
“Attorney General Eric
Holder's tenure was a low point even within the disgraceful scandal-ridden
Obama years.” DANIEL GREENFIELD / FRONTPAGE MAG
"One of the premier institutions of
big business, JP Morgan Chase, issued an internal report on the
eve of the 10th anniversary of the 2008 crash, which warned that
another “great liquidity crisis” was possible, and that a
government bailout on the scale of that effected by Bush and Obama
will produce social unrest, “in light of the potential impact
of central bank actions in driving inequality between
asset owners and labor."
This manufactured crisis has, in turn, been exploited by the
Obama administration and both big business parties to hand over trillions in
pension funds and other public assets to the financial kleptocracy that rules America.
“Our entire crony capitalist system, Democrat and Republican
alike, has become a kleptocracy approaching par with third-world
hell-holes. This is the way a great country is raided by its elite.”
---- Karen McQuillan THEAMERICAN THINKER.com
“This was not because of difficulties in securing indictments or
convictions. On the contrary, Attorney General Eric Holder told a Senate
committee in March of 2013 that the Obama administration chose not to prosecute
the big banks or their CEOs because to do so might “have a negative impact on
the national economy.”
"One of the
premier institutions of big business, JP Morgan Chase, issued
an internal report on the eve of the 10th anniversary of the 2008
crash, which warned that another “great liquidity crisis”
was possible, and that a government bailout on the scale of that
effected by Bush and Obama will produce social unrest, “in light of
the potential impact of central bank actions in driving
inequality between asset owners and labor."
Why
aren’t the Wall Street criminals prosecuted?
In
May 2012, only days after JPMorgan Chase’s Jamie Dimon revealed that his bank
had lost billions of dollars in speculative bets, President Barack Obama
publicly defended the multi-millionaire CEO, calling him “one of the smartest
bankers we’ve got.” What Obama did not mention is that Dimon is a criminal.
JPMorgan
is not the exception; it is the rule. Virtually every major bank that operates
on Wall Street has settled charges of fraud and criminality on a staggering
scale. In 2011, the Senate Permanent Subcommittee on Investigations released a
630-page report on the financial crash of 2008 documenting what the committee
chairman called “a financial snake pit rife with greed, conflicts of interest
and wrongdoing.”
These
multiple crimes by serial lawbreakers have had very real and very destructive
consequences. The entire world has been plunged into an economic slump that has
already lasted more than five years and shows no signs of abating. Tens of
millions of families have lost their homes as a result of predatory mortgages
pushed by JPMorgan and other Wall Street banks.
Billionaire JP Morgan chief attacks socialism as 'a
disaster'
This article is more
than 10 months
old
·
Jamie Dimon: socialism leads to ‘corruption and favouritism’
·
America’s top banker, paid $31m last year, defends capitalism
5,968
The world’s most powerful banker has attacked socialism, saying
it produces “stagnation, corruption and often worse”.
Robert Reich
Read more
JP Morgan’s chief executive, Jamie Dimon, took aim at
socialism in his annual letter to shareholders, and warned it would be “a disaster for our country”.
Dimon, who was paid $31m last year as the head of America’s
largest bank and who is estimated by Forbes to be worth $1.3bn, took his
swipe as a new wave of left politics has emerged in the US.
Democratic socialism has been embraced by a new generation of
politicians, including New York congresswoman Alexandria Ocasio-Cortez, and supporters of
Bernie Sanders, a longtime socialist now making a second bid for the
presidency.
Dimon’s attack also comes as many leftwing Democrats, including
Sanders and Senator Elizabeth Warren, have called for the breakup of big
businesses and greater regulation of banking in particular.
In his letter, Dimon wrote: “When governments control companies,
economic assets (companies, lenders and so on) over time are used to further
political interests – leading to inefficient companies and markets, enormous
favoritism and corruption.”
He went on: “Socialism inevitably produces stagnation,
corruption and often worse – such as authoritarian government officials who
often have an increasing ability to interfere with both the economy and
individual lives – which they frequently do to maintain power. This would be as
much a disaster for our country as it has been in the other places it’s been
tried.”
Socialism is set to be one of the key
issues of the 2020 election cycle. Donald Trump has already begun campaigning
against socialism and used his State of the Union address to declare that
“America will never be a socialist country.”
Dimon has previously warned income inequality is dividing America.
“It is absolutely obvious that a big chunk of [people] have been
left behind,” Dimon said last month. “Forty percent of Americans make less than
$15 an hour. Forty percent of Americans can’t afford a $400 bill, whether it’s
medical or fixing their car. Fifteen percent of Americans make minimum wages,
70,000 die from opioids [annually].”
In his letter, Dimon acknowledged capitalism’s “flaws” but
praised it as “the most successful economic system the world has ever seen”.
He wrote: “This is not to say that capitalism does not have
flaws, that it isn’t leaving people behind and that it shouldn’t be improved.
It’s essential to have a strong social safety net – and all countries should be
striving for continuous improvement in regulations as well as social and
welfare conditions.”
JP Morgan CEO Jamie Dimon takes on socialism, says it will lead to
an ‘eroding society’
KEY POINTS
·
J.P. Morgan Chase CEO Jamie Dimon criticized socialism, saying
it leads to an “eroding society.”
·
Speaking at the World Economic Forum in Davos, Dimon told CNBC
that capitalism is not perfect but is capable of fixing the problems of today.
VIDEO01:59
Jamie
Dimon: ‘I don’t think people understand what socialism is’
Socialism has failed where it’s been tried
and ultimately leads to an “eroding society,” J.P. Morgan Chase CEO
Jamie Dimon said Wednesday.
With democratic socialist Sen. Bernie
Sanders among the leaders in the Democratic presidential race and other
candidates espousing similar-sounding ideas, the head of the nation’s biggest
bank by assets said the idea of socialist control of the means of production
would be detrimental to the U.S.
“I
honestly don’t think they understand what socialism is,” Dimon told CNBC during a
“Squawk Box” interview at
the World Economic Forum in Davos, Switzerland, referring to a question about
millennials.
VIDEO19:31
Watch
CNBC’s full Davos interview with JP Morgan Chase CEO Jamie Dimon
“Most state-owned enterprises don’t do a particularly
good job,” he added. “You look around the world and they become corrupt over
time. That doesn’t mean that capitalism is perfect. That doesn’t mean that
every public company is perfect. No, there are flaws.”
Sanders has been the
most out front of the candidates in backing socialism, though
many of his opponents in the Democratic race also back universal health care,
increased business taxes and greater government control over private
enterprise.
Dimon said he did not want to address any
specific candidates. But he said that socialist governments traditionally have
done a poor job allocating capital and end up backing politically popular
endeavors and “bridge to nowhere” projects.
“Once you do that, you will have an eroding
society,” he said.
“They do need to fix inner-city schools,
infrastructure, health care,” Dimon added. “We can fix all of those in a
capitalist society.”
Bernie Sanders Slams Jamie Dimon On
Socialism – They’re Both Wrong
Bernie Sanders has hit back against
Jamie Dimon's comments about socialism, but they're both missing the point on
Wall Street greed.
Bernie Sanders went after Jamie Dimon on Twitter calling him a hypocrite for his comments on socialism.
·
Senator Sanders is not telling the whole truth
when it comes to Wall Street bailouts.
·
Jamie Dimon is also wrong as corporate welfare is
rampant, and creating a dangerous imbalance in U.S. society.
What is the saying about people in glass houses? Jamie Dimon has
been getting a lot of press for his comments on several economic
topics at the billionaire ski-meet, otherwise known as the World Economic Forum
in Davos. Of particular interest were his comments regarding
socialism, of which the JPMorgan Chase CEO and Chairman were very critical. The
United States’ most famous socialist, Senator Bernie Sanders, is not having it,
and reminded Dimon of a very inconvenient truth.
Bernie Sanders Stretches The Truth To Slam Jamie Dimon
While the
above tweet will no doubt get Bernie Bros feeling the Bern and pumping their
fists, a note of caution. JPMorgan Chase did pay back their bailout money, and
Bernie Sanders must be referring to Wall Street as a whole, not specifically
Jamie Dimon’s bank, which only received $25 billion.
Dimon can
state that his bank was a profitable investment, as President
Obama’s decision to trust the bank’s ability getting back on its feet resulted
in a profit for the government.
The JPMorgan Chase CEO Owes A Lot Of His Considerable Wealth To
Socialism
So Sanders is
not telling it precisely as it is here. The point he is really making
paraphrases as “don’t insult the concept of receiving aid from the government
when your corporation went broke and used Wall Street food stamps.” The senator
has a point.
What truly irks the everyday American is not that some people rise
to the top of the corporate ladder on Wall Street and earn billions. What
annoys them is when those CEO’s mess up, get everything wrong, screw over the working
man and crash the housing market, and still walk away with their vast compensation packages.
Yes, the
taxpayer technically got most of it back, but a large contingent of those
people didn’t get the jobs or houses back that they lost in the recession.
Fed Interventions Are Enabling Wall Street Recklessness, Again
The same economic mistakes that required the Federal Reserve to
put the U.S. economy on life support have, in turn, stagnated wage growth and disproportionately
benefited the financial class that got so greedy in the first place.
Now that Jamie Dimon has shown that JPMorgan paid back their
bailout money, what’s to stop them from taking excessive risks and blowing
everything up again? Rinse and repeat, as Wall Street relies on government
handouts to catch it when it falls.
Long
considered somewhat of a conspiracy theory, more and more market voices are
speaking up against the Fed’s interventions in financial markets. Scott Minerd,
the CIO of Guggenheim Partners, is about as mainstream a figure as you can get
in the hedge fund world, and he called the stock market a “Ponzi scheme” in
Davos.
You Can’t Cherry-Pick What Is Socialism & What’s “Necessary”
So Bernie
Sanders is absolutely right. Taxpayer funds were used to make the rich richer
but looks to be wrong that these were not a good investment from perspective of
taxpayer funds.
Jamie Dimon is
wrong because he doesn’t understand that he is himself, a billionaire product
of corporate socialism. CEOs love to
talk about how corporations should legally be treated as individuals,
so we can probably just call it socialism.
A person who is down and out in society is no different from a
bankrupt Wall Street firm when it comes to needing a handout. Whatever the
result, or the amount in question, they are all
part of the same system.
Bernie Sanders is right to tell you not to listen to people like
Jamie Dimon, who criticize socialism when they don’t need it, yet are first in
line and full of excuses when they do. Secondly, please don’t believe word for
word everything Bernie Sanders says about Wall Street, because he is often
exaggerating to make his point.
Finally, it’s
impossible to have an article about socialism and not give former U.K. Prime
Minister Margaret Thatcher the last word.
This article was edited by Samburaj Das.
Last modified:
January 23, 2020 9:29 AM UTC
Financial speculator & author living in the hills in
Los Angeles. J.D. but very much not a lawyer. Favorite trading books are
anything written by Jack Schwager. Email: bullishtulips@gmail.com,
MORE OF:
Biden Bashes Influence of Billionaires While Relying on
their Money
JOSEPH
PREZIOSO/AFP/Getty Images.
Former Vice President Joe Biden is
bashing the outsize influence billionaires are having on the race for the 2020
Democrat nomination, despite his own campaign relying heavily upon their money.
In a fundraising email sent to
supporters on Thursday, Biden’s campaign excoriated two of his Democrat rivals
for using their personal fortunes to underwrite their presidential ambitions.
The email, titled “the billionaires are coming,” took direct aim at Tom Steyer
and former New York City Mayor Michael Bloomberg for spending heavily to
“saturate your airwaves and news feeds.”
In particular, Biden’s campaign
lambasted Steyer for using his fortune to gain access to the Democrat debates,
while attacking Bloomberg for skipping early primaries and spending $100
million in delegate-heavy Super Tuesday states.
“One billionaire is buying his way
onto the Democrat debate stage, and one is buying his way out of it,” Biden’s
campaign wrote, before proceeding to argue both billionaires were undermining
“how democracy is supposed to work.”
The former vice president’s attack
on the influence Steyer and Bloomberg are having is surprising given the fact
his own campaign has relied heavily on billionaires to underwrite his White
House hopes.
A recent report by Forbes indicates Biden has
been one of the biggest beneficiaries of the billionaire donor class since
launching his candidacy. In the last fundraising quarter alone, the former vice
president pulled in contributions from 44 billionaires—the most of any 2020
Democrat. Many of those contributing opted to max out, giving the largest sum
possible for a primary campaign under federal law.
The money rolled in from Silicon
Valley titans, Wall Street elites, and some of the country’s largest real
estate tycoons.
Among the donors was Eric Schmidt,
the former CEO of Google who stirred controversy in January 2017 when claiming
President Donald Trump would do “evil things” in office.
Schmidt donated $2,800 to Biden’s
campaign in May, less than a week after the former vice president entered the
race. In the past the former Google executive has heavily backed Democrat
candidates up and down the ballot, including House Speaker Nancy Pelosi (D-CA).
Employees from Google’s parent
company, Alphabet Inc., have donated more than $37,000 to Biden’s campaign to
date, according to the Center
for Responsive Politics. The hefty contributions have ensured Alphabet is one
of the former vice president’s top 20 contributors. Joining a list that
includes another Silicon Valley giant, Microsoft Corp.
Biden’s support in Silicon Valley
has not been confined to traditional Democrats. Former eBay CEO Meg
Whitman, a one time Republican nominee for governor of California,
donated $2,800 in September.
In 2016, Whitman broke ranks by endorsing former
Secretary of State Hillary Clinton over Trump. Since that time, the former eBay
executive has become a consistent ‘Never
Trumper.’
On America’s other coast, the former
vice president has elicited prime backing from Wall Street and the real estate
industry.
Topping the list of Biden’s Wall
Street backers is Judy Dimon, the wife of JPMorgan Chase CEO Jamie Dimon.
Although her husband, himself, has not donated, Dimon maxed out to Biden in
mid-September.
The contribution comes with its own
controversial history. In 2008, then-Sen. Joe Biden supported the Troubled Asset Relief Program, which granted large
financial institutions bailouts to survive the recession. JPMorgan was one such
institution, taking more than $25 billion in taxpayer money—one of largest bailouts granted to any company under the program.
The bailout came even though
JPMorgan’s mortgage lending practices helped create the housing bubble that,
when it burst, ultimately led the to the recession. In 2013, the bank agreed to
pay a civil fine of $13 billion for its
unscrupulous lending practices.
Apart from Dimon,
Biden received maxed out contributions from private equity executives, like
Blackstone President Jonathan Gray. Blackstone
recently made a $250 million investment in a
startup that helps outsource American jobs overseas.
In total, the former vice president
has filled a significant portion of his campaign account from Wall Street
donors, including nearly a million dollars from the securities and investment sector.
Wall Street’s contributions,
however, paled in comparison to the amount of money real estate tycoons have
donated to Biden. In between April and the end of September, the former vice
president garnered more than one million from real estate interests.
The funds poured in from longtime
allies like Neil Bluhm, a casino and real estate magnate, and George Marcus,
the leader of America’s largest commercial property brokerage firms.
Although Bluhm and Marcus have only donated $2,800
each, both men have hosted lavish
fundraisers on Biden’s behalf that have raised unknown amounts.
Biden’s reliance on such
billionaires is one of the reasons his campaign has struggled to compete
financially with the likes of Sens. Bernie Sanders (I-VT) and Elizabeth Warren
(D-MA).
Although Biden started the race with
a strong funding advantage, thanks to support from high-dollar donors, he ended
the most recent fundraising period well behind his competitors. In between July
and the end of September, Biden only raised $15.2 million. The sum was dwarfed
by that raised by Sanders ($25.3 million), Warren ($24.6 million), and South
Bend Mayor Pete Buttigieg ($19.1 million).
The former vice president’s
fundraising troubles stem from an inability to make in-roads with small-dollar
donors. Unlike Warren or Sanders, more than 2,900 donors have
already maxed out to Biden’s campaign.
In fact, top-dollar donors make up a
far higher percentage of Biden’s campaign coffers than those of his
competitors. In comparison, only 38 percent of the campaign’s funds to date
have come from individuals donating less than $200. Such a ratio poses a long
term issue, especially when top contributors are prohibited by law from
donating again until after the primary.
The disparate support between
billionaires and small donors was seen as a primary motivator for Biden’s
decision to jettison opposing outside help from Super PACs. Since such groups can raise and spend unlimited funds, the
former vice president’s billionaire donors are no longer subject to
contribution limits when supporting his campaign.
Biden, though, did not mention any
of this in his email to supporters on Thursday. Instead, the former vice
president kept his fire aimed at Steyer and Bloomberg, while downplaying his
own support from the billionaire donor class.
“Since the day that this campaign
launched, we have relied on grassroots support to power this campaign,” Biden’s
team wrote.
JPMorgan
shares climb after the bank posts record earnings and revenue
Jamie Dimon arriving to testify before
Congress. Aaron P. Bernstein/Reuters
· JPMorgan reported first-quarter earnings
results on Friday, kicking off another earnings season for the largest US
banks.
JPMorgan
Chase reported record first-quarter results on both the top and bottom lines
Friday morning. Shares climbed 2.3% in early trading to $108.68.
Here's how
the results stacked up with Wall Street's expectations as compiled by
Bloomberg.
· Adjusted net income: $9.18 billion versus $7.7 billion
expected
· Earnings per share: $2.65 versus $2.34 expected
· Revenue: $29.85 billion versus $28.4 billion
expected
· Expenses: $16.4 billion versus $16.7 billion
expected
"In
the first quarter of 2019, we had record revenue and net income, strong
performance across each of our major businesses, and a more constructive
environment," CEO Jamie Dimon said in the earnings
release.
"Even amid some global geopolitical uncertainty, the US economy continues
to grow, employment and wages are going up, inflation is moderate, financial
markets are healthy, and consumer and business confidence remains strong."
A deeper
look into the numbers showed the trading and investment-banking businesses
exceeded expectations, though trading declined 17% from the year earlier:
· FICC sales & trading revenue: $3.73 billion versus $3.67 billion
expected
· Equity sales & trading revenue: $1.74 billion versus $1.73 billion
expected
· Investment-banking revenue: $1.75 billion versus $1.63 billion
expected
Obama's Wall
Street cabinet
6 April 2009
A series of articles published over the
weekend, based on financial disclosure reports released by the Obama
administration last Friday concerning top White House officials, documents the
extent to which the administration, in both its personnel and policies, is a
political instrument of Wall Street.
Policies that are extraordinarily
favorable to the financial elite that were put in place over the past month by
the Obama administration have fed a surge in share values on Wall Street. These include the scheme to use hundreds of billions of dollars in
public funds to pay hedge funds to buy up the banks’ toxic assets at inflated
prices, the Auto Task Force’s rejection of the
recovery plans of Chrysler and General Motors and its demand for even more
brutal layoffs, wage cuts and attacks on workers’ health benefits and pensions,
and the decision by the Financial Accounting Standards Board (FASB) to weaken
“mark-to-market” accounting rules and permit banks to inflate the value of
their toxic assets.
At the same time, Obama has campaigned
against restrictions on bonuses paid to executives at insurance giant American
International Group (AIG) and other bailed-out firms, and repeatedly assured
Wall Street that he will slash social spending, including Medicare, Medicaid
and Social Security.
The new financial disclosures reveal that
top Obama advisors directly involved in setting these policies have received
millions from Wall Street firms, including those that have received huge
taxpayer bailouts.
The case of Lawrence Summers, director of
the National Economic Council and Obama’s top economic adviser, highlights the
politically incestuous character of relations between the Obama administration
and the American financial elite.
Last year, Summers pocketed $5 million as
a managing director of D.E. Shaw, one of the biggest hedge funds in the world,
and another $2.7 million for speeches delivered to Wall Street firms that have
received government bailout money. This includes $45,000 from Citigroup and
$67,500 each from JPMorgan Chase and the now-liquidated Lehman Brothers.
For a speech to Goldman Sachs executives,
Summers walked away with $135,000. This is substantially more than double the
earnings for an entire year of high-seniority auto workers, who have been
pilloried by the Obama administration and the media for their supposedly
exorbitant and “unsustainable” wages.
Alluding diplomatically to the flagrant
conflict of interest revealed by these disclosures, the New York Times noted on
Saturday: “Mr. Summers, the director of the National Economic Council, wields
important influence over Mr. Obama’s policy decisions for the troubled
financial industry, including firms from which he recently received payments.”
Summers was a leading advocate of banking
deregulation. As treasury secretary in the second Clinton administration, he
oversaw the lifting of basic financial regulations dating from the 1930s. The
Times article notes that among his current responsibilities is deciding
“whether—and how—to tighten regulation of hedge funds.”
Summers is not an exception. He
is rather typical of the Wall Street insiders who comprise a cabinet and White
House team that is filled with multi-millionaires, presided over by a president
who parlayed his own political career into a multi-million-dollar fortune.
Michael Froman, deputy national security
adviser for international economic affairs, worked for Citigroup and received
more than $7.4 million from the bank from January of 2008 until he entered the
Obama administration this year. This included a $2.25 million year-end bonus
handed him this past January, within weeks of his joining the Obama
administration.
Citigroup has thus far been the
beneficiary of $45 billion in cash and over $300 billion in government
guarantees of its bad debts.
David Axelrod, the Obama campaign’s top
strategist and now senior adviser to the president, was paid $1.55 million last
year from two consulting firms he controls. He has agreed to buyouts that will
garner him another $3 million over the next five years. His disclosure claims
personal assets of between $7 and $10 million.
Obama’s deputy national security adviser,
Thomas E. Donilon, was paid $3.9 million by a Washington law firm whose major
clients include Citigroup, Goldman Sachs and the private equity firm Apollo
Management.
Louis Caldera, director of the White
House Military Office, made $227,155 last year from IndyMac Bancorp, the California
bank that heavily promoted subprime mortgages. It collapsed last summer and was
placed under federal receivership.
The presence of multi-millionaire Wall
Street insiders extends to second- and third-tier positions in the Obama
administration as well. David Stevens, who has been tapped by Obama to head the
Federal Housing Administration, is the president and chief operating officer of
Long and Foster Cos., a real estate brokerage firm. From 1999 to 2005, Stevens
served as a top executive for Freddie Mac, the federally-backed mortgage
lending giant that was bailed out and seized by federal regulators in
September.
Neal Wolin, Obama’s selection for deputy
counsel to the president for economic policy, is a top executive at the
insurance giant Hartford Financial Services, where his salary was $4.5 million.
Obama’s Auto Task Force has as its top
advisers two investment bankers with a long resume in corporate downsizing and
asset-stripping.
It is not new for leading figures from
finance to be named to high posts in a US administration. However, there has
traditionally been an effort to demonstrate a degree of independence from Wall
Street in the selection of cabinet officials and high-ranking presidential
aides, often through the appointment of figures from academia or the public
sector. In previous decades, moreover, representatives of the corporate elite
were more likely to come from industry than from finance.
In the Obama administration such
considerations have largely been abandoned.
This will not come as a surprise to those
who critically followed Obama’s election campaign. While he postured before the
electorate as a critic of the war in Iraq and a quasi-populist force for
“change,” he was from the first heavily dependent on the financial and
political backing of powerful financiers in Chicago. Banks, hedge funds
and other financial firms lavishly backed his presidential bid, giving him
considerably more than they gave to his Republican opponent, Senator John
McCain.
Friday’s financial disclosures further expose
the bankruptcy of American democracy. Elections have no real effect on
government policy, which is determined by the interests of the financial
aristocracy that dominates both political parties. The working class can fight
for its own interests—for jobs, decent living standards, health care,
education, housing and an end to war.
“Records show that four out of Obama's
top five
contributors are employees of financial
industry giants –
Goldman Sachs ($571,330), UBS AG
($364,806),
JPMorgan Chase ($362,207) and Citigroup
($358,054).”
OBAMA and HIS BANKS: THEIR PROFITS,
CRIMES and LOOTING SOAR
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