Our government leaders apparaently don't think they will ever have to face a public revolt like they watched in Egypt and Tunisia. It started as an revolt against economic injustic. I agree that some high ups in business needed to go to jail- I think that the statute of limitations for prosecuting those crimes of 2002-2008 have passed- they are good to go for another wave to theft from investors.
US foreclosures a mess
by diamondiiz 19 Replies latest social current
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Mary
jwfacts said: To prevent such ongoing corruption, an example needs to be made of Wall Street through prison sentences. American has a huge prision population consisting mainly of the under privileged, when the corrupt wealthy are just as guilty of destroying peoples lives, yet by far the majority get away with no recompense.
You said it. Unfortunately I think part of the problem is that the minute anyone suggests that a far tighter reign be put on Wall Street and other gi-normous corportations that were responsible for the financial meltdown so that this doesn't happen again, many Americans start getting antzy and are afraid that more government regulations will result in them slip-sliding down the road to Communism, which is crazy.
I was shocked when I found out that the banks in the States are not regulated by the government and that for all the trillions the banks lent out in mortgages, that the banks only have to have 5% in something tangible, (like gold) to back it up. In Canada, the banks are very heavily regulated, and rightfully so. My sister's worked at the Royal Bank for 33 years and she told me straight out that there's no way in hell anyone on Unemployment or Welfare would ever get a mortgage through one of the banks because of the way they're regulated up here. The banks have to have 55% of the monies they lend out in mortgages, backed up by tangible assets----not just something written on a piece of paper that isn't worth squat. I know that was only part of the problem, but it helped make a mess of the current situation.
moshe said: Our government leaders apparaently don't think they will ever have to face a public revolt like they watched in Egypt and Tunisia.
Good point Moshe. Which is hilarious when you think about it because that's what the United States of America was born: A revolt against corruption and injustice.
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chickpea
i actually remarked to a close friend something along the lines
"bet madison (wisconsin) was a warm up for what is to follow"
seems we are all living in interesting times
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DesirousOfChange
that's what the United States of America was born: A revolt against corruption and injustice.
What goes around, comes around again.
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diamondiiz
Mary:
I don't know of any bank that needs 55% in reserves. I don't even know if they need 5%. Fractional reserve banking is such a scam but they get away with it. I also doubt most banks hold gold as a reserve but Government bonds (debt) and such play greater role in their "tangible" reserve. Also, I don't know if Canadian Central Bank has any gold reserves as they've sold a lot of it if not all a while back. While Canadian banks are more regulated than US it doesn't mean much when people still get huge loans that are a paycheck away from not being able to afford the mortgage in the first place. Our housing market is also overpriced and if our job markets drops US scenario can unfold real quickly - not to the same extreme.
One other thing about banks, your mortgaged home is on their books so as long as home prices are stable and you're paying banks their interest on the money they lend you they are very happy but once the home prices drop and people start walking away from homes which are worth less than their mortgage that's when you see banks dropping like flies.
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jay88
After watching the sixty-minutes clip all I can say is WOW.
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the prisoner No 6
Over here in UK, the banking sectors in Aus and Canada, are held up as examples of how banks should operate in terms of oversight and regulation, unfortunately we had light touch regulation, just like the States and as a consequence our banks have been over exposed to not only the American house price bubble, but also our own, and that of Ireland and to a lesser extent Spain.
this is going a bit of topic but needs to be stated, because as Diamond rightly pointed out commodities are bought and sold in $, Saddam Hussain, was pushing OPEC (and having some succsses) in getting oil to be traded in Euros, Not only would this have undermined US prestige, but would have undermined the Dollar, and the US economy, and put preasure on other commodities markets to follow, large Corps like Haleburton, Boeing, not to mention the US banking system, were never going to allow thst to happen, I believe thats the real reason Iraq got invaded it was to prevent that scenario from developing, WE all trade with dictators, Saddam was seculor and hated religious fundementalists. Discuss
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badseed
We're surrounded by crooks. No way this country will survive for long. S is gonna hit the fan that's for sure.
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Botzwana
Wow....I was thinking about moving back to the states. Not so sure now.
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diamondiiz
the prisoner No 6:
The mortgage fiasco was bought by banks world over. It was great when house prices were going to the moon but not so pleasant when reality hit and home values plummeted. There are other derivatives on the books that make housing market problem look small in comparison. Over the counter derivatives are a problem that may bite someone in the ass and not only big banks but nations can be affected by these things.
While I've heard about Hussain trying to sell or was selling oil in Euros I doubt that is the main reason US invaded Iraq, as oil is more likely cause for the invasion. Peak oil theory makes sense, and if the theory is right a then major oil fields have peaked or are about to peak in the next few years. Without oil, you can't move armies and wars cannot be won. Global supremacy is dependent on oil, though US gets most of their oil from Canada middle east is a strategic area for US to have control of.
US dollar issues is a big topic and too big to discuss here. While US doing business with dictators is no surprise after all some were placed in their positions with US' help while others are praised with favorite nation status - China being a prime example.