President Obama calls the biggest bank bonuses of all time "obscene" and is talking with Congress about taxing those bonuses to recover some money for the American people.
But so far Mr. Obama can't even get tougher financial regulations or a new Consumer Protection Agency through Congress for the banking lobby buys the Congressmen.
But Mr. Obama has powers he's not using. Under the Antitrust legislation already on the books, he can direct the Attorney General to file suit to break up the banks that are "too big to fail," for they have become a monopolistic predatory trust.
A century ago, this is what Teddy Roosevelt did against the greedy corporate giants and it's time to do it again. Bank of America, Citigroup, Goldman Sachs, J.P. Morgan Chase and other giants need to be broken up so community banks can compete with them and to stop U.S. consumers from being gauged at every opportunity.
This is how Mr. Obama can show them "change" is coming, rather than just reacting in anger at the fleecing of the American people.
If Congress can find the courage to act, it could re institute the 1933 Glass-Steagall act, which separates banking (making traditional loans) from investment banking (trading stocks, bonds and commodities and creating exotic financial instruments). This act served the public well until it was dismantled several years ago by banking lobbyists.
These banking behemoths then had overwhelming conflicts of interest but it didn't matter to them in their aggressive pursuit of deals and massive executive bonuses, which played a crucial factor in the current economic meltdown. These conflicts of interest still exist today and already, these behemoths are back to their old ways and the sky high bonuses are just one manifestation.
America has been a great nation and it can be again. Taking financial control back from those who bled it dry, including Congress, is a vital step. But it can't happen unless you raise your voice and demand change for no President can accomplish this without your support. Let's encourage this President and give him that support.
Dick [last updated 1/18/10]
Friday, January 15, 2010
Wednesday, January 13, 2010
How To Protect Yourself From The Inflation To Come
From the vast and thus far endless spending of the U.S. Federal Reserve and that of other governments around the world, inflation will soon confront us.
Stock markets are skyrocketing, as are commodities prices as bankers, awash in a tidal wave of cheap money have begun widely speculating much as they did before.
Realizing the consequences, China, soon to be the world's 2nd largest economy has begun tightening credit, raising interest rates and demanding its banks slash their lending, holding more of their funds in reserve.
But in America, as "too big to fail" banks wildly speculate or loan to those who wildly speculate, as we just saw, when defaults happen, they demand bailouts. Meanwhile, acting with the fiscal responsibility of a drunken sailor, the U.S. continues flooding money into bailouts and stimulus, weapons and wars.
To pay for this, it is on a borrowing binge. But half of its debt is now held by foreign investors and fearful of U.S. future inflation, for new loans they often insist on TIPS {Treasury Inflation-Protected Securities], meaning the U.S. will protect them from inflation, taking on vast open ended liabilities.
Here is what you can do to also protect yourself. If you have savings, commit them only short term, for during 2010, interest rates will rise and you'll be paid more. If you are a borrower, borrow long term fixed rate while that cheap money is there for you. If you're going to refinance your home for example, do it now.
If you want to ride the wave of inflation to come, select a highly reputable hedge fund that is forming such a fund. They already exist and more will come.
The inflationary consequences are ugly. But together we will get through it, much as people did during the Great Depression and as a result hopefully we will build a more compassionate nation and one that takes fiscal responsibility seriously.
Dick [updated 1/14/10]
Stock markets are skyrocketing, as are commodities prices as bankers, awash in a tidal wave of cheap money have begun widely speculating much as they did before.
Realizing the consequences, China, soon to be the world's 2nd largest economy has begun tightening credit, raising interest rates and demanding its banks slash their lending, holding more of their funds in reserve.
But in America, as "too big to fail" banks wildly speculate or loan to those who wildly speculate, as we just saw, when defaults happen, they demand bailouts. Meanwhile, acting with the fiscal responsibility of a drunken sailor, the U.S. continues flooding money into bailouts and stimulus, weapons and wars.
To pay for this, it is on a borrowing binge. But half of its debt is now held by foreign investors and fearful of U.S. future inflation, for new loans they often insist on TIPS {Treasury Inflation-Protected Securities], meaning the U.S. will protect them from inflation, taking on vast open ended liabilities.
Here is what you can do to also protect yourself. If you have savings, commit them only short term, for during 2010, interest rates will rise and you'll be paid more. If you are a borrower, borrow long term fixed rate while that cheap money is there for you. If you're going to refinance your home for example, do it now.
If you want to ride the wave of inflation to come, select a highly reputable hedge fund that is forming such a fund. They already exist and more will come.
The inflationary consequences are ugly. But together we will get through it, much as people did during the Great Depression and as a result hopefully we will build a more compassionate nation and one that takes fiscal responsibility seriously.
Dick [updated 1/14/10]
Tuesday, January 12, 2010
How You Can Earn 20% Or More On Your Money, Risk Free
Are You tired of earning just 1% on your savings?
But at the same time credit card providers often charge you 20% or more on your unpaid balances. Frequently, these are the same firms that pay you that modest 1%.
What is the answer? Begin paying down what you owe, taking it from your savings. Just add it to your minimum monthly credit card payment.
For every $1,000 you pay off, you pocket at least $200! That’s $200 of tax free income compared to the taxable $20 you would have received on that money at 1%.
If you’ve ever wondered how honest financial wizards make fortunes, it is little things like this that compound the return on their money that over time, make a huge difference.
Now that you know this, take advantage and pocket the difference. You will be glad you did
Dick
But at the same time credit card providers often charge you 20% or more on your unpaid balances. Frequently, these are the same firms that pay you that modest 1%.
What is the answer? Begin paying down what you owe, taking it from your savings. Just add it to your minimum monthly credit card payment.
For every $1,000 you pay off, you pocket at least $200! That’s $200 of tax free income compared to the taxable $20 you would have received on that money at 1%.
If you’ve ever wondered how honest financial wizards make fortunes, it is little things like this that compound the return on their money that over time, make a huge difference.
Now that you know this, take advantage and pocket the difference. You will be glad you did
Dick
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