Reply Sat 9 Oct, 2010 12:43 pm
People don't understand how the few suck the profits from the many.

Speculators and bank executives have used their knowledge of accounting and bank procedures to enrich themselves with other people's money.


Speculators put very little money of their own towards a project. This called down payment. They take bank loans which is money of people who deposit money in the banks. If the speculators make a lot of money. If the speculators make a lot of money they pay the interest and the rest is theirs. If they lose they lose the small down payment. It is the bank that loses the money. If the loss is big then the government helps to prevent as happened with the meltdown.

Wall Street and bank executives also indulge in stock market fraud using leveraged loans and take the large share of the profits and risking public and shareholders' money.
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Type: Discussion • Score: 3 • Views: 4,274 • Replies: 54
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reasoning logic
 
  0  
Reply Sat 9 Oct, 2010 01:38 pm
@talk72000,
This does seem to be true!
rabel22
 
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Reply Sat 9 Oct, 2010 11:17 pm
Been going on for 100 years or more.
talk72000
 
  1  
Reply Tue 12 Oct, 2010 01:23 pm
@rabel22,
The Prohibition somehow made organized crime a reality and many used their money to get into businesses. The Cotton Club was a good example, Las Vegas gambling casinos and Wall Street. The Jewish mafia like Lucky Luciano, Bugsy Malone and others were business like and Wall Street was their target. These guys don't want regulation which would require criminal checks on business ownership. The mafia bought money losing businesses to launder their money the same way Wall Street is doing by investing in businesses that would increase ownership but not too profitable.
0 Replies
 
talk72000
 
  1  
Reply Tue 12 Oct, 2010 02:34 pm
@reasoning logic,
The top ten gangsters:
http://whiskeygoldmine.com/downtown-bar-stories-lounge-club/top-10-gangsters-prohibition-boardwalk-empire-edition/

1. Al Capone
2. Charles “Lucky” Luciano: Perhaps the richest gangster in the history of the world, Lucky Luciano and partner Meyer Lansky made more money than any mobsters ever without even accounting for inflation. Most of this money was probably made by heroin long after prohibition had ended. However, Luciano is credited for making the peace with fellow gangsters in an attempt to quell the violence and save money on shipments and political bribes. Associated with the National Crime Syndicate, head of the Commission and the Young Turks, Luciano brought all the heavyweight gangsters together, including Al Capone. Luciano was one of the first Italian gangsters to align himself with Jewish mobsters such as Allan Rothstein, Meyer Lansky and Ben Segal, as well as Italian gangsters Frank Costello, Vito Genovese, Johnny Torrio, Joseph Bonano and Al Capone. These guys were the champions of bootlegging. In Boardwalk Empire, Luciano is portrayed as a hot headed young associate of Rothstein.

Samuel Bronfman in Canada was the bootlegger and Seagrams became a giant in booze business.

3. Meyer Lansky: Legend has it that it was Lansky’s idea to create the Commission but some say it was Johnny Torrio that convinced Luciano that the Commission was the right thing to do. Yup, it was a Jew’s idea that all of the leaders of the Italian mob sit down and work together for better business and the benefit of everyone. Maybe Henry Ford was right about the International Jewish Conspiracy to control all the money. After all, I still get my Jew check in the mail every week. Again, perhaps the richest gangster in history with his close friend and associate Lucky Luciano, Lansky was instrumental in Luciano’s rise to power and the creation of the Commission. Lansky’s gambling business stretched from New York, to Florida, Cuba and Vegas. In the 30’s and 40’s, Lansky actually worked with the U.S. government in providing security for naval ships in the port and intimidating Nazi sympathizers.


4. Johnny Torrio

5. Arnold Rothstein: Allegedly fixing the 1919 World Series by paying Chicago White Sox players to intentionally lose to the Cincinnati Reds, Rothstein was also one of the first gangsters to set up major bootlegging operations during the onset of Prohibition. Rothstein advised many crime families and attempted to take the violence out of the business. Rothstein was also a legendary gambler but was murdered in 1928 after reneging on a $300,000 loss in a poker game. Refusing to pay after accusing the other players of cheating, Rothstein murderers reportedly killed him in order to teach Rothstein a lesson. On his deathbed, the Jewish Rothstein stuck to the code of the streets and refused to name his assassins. In episode 1 of HBO’s Boardwalk Empire, Rothstein is portrayed as a gambling cheat and slick deal maker only to have a shipment a booze stolen.

6. Bugs Moran: Chief rival and arch enemy of Johnny Torrio and Al Capone, the Polish and Irish Moran was never took orders from the Chicago Outfit and Southside Gang. In fact, Moran stole Torrio and Capone’s booze at will. Aligning himself with the Irish bootlegger Dean O’Banion, Moran’s outfit became known as the Northside gang. Throughout the 20’s, the Chicago Outfit and Southside Gang battled the Northside gang in shootouts, kidnappings, murder and torture. After O’Banion’s assassination at the hands of Capone and Torrio, Moran continued to battle Capone for years. The exclamation point on the war was the eventual St. Valentine’s day massacre when seven of Moran’s men were executed. However, Moran never wavered, controlling most of his territory and taking revenge by murdering Capone associates for almost a decade to come.

7. Enoch “Nucky” Johnson

8. Frank Nitti

9. Bugsy Segal: An enforcer for Lansky since they were teenagers, Segal became a mob hitman for multiple families during Prohibition. Segal aligned himself with Lansky, Luciano and Frank Costello and established bootlegging operations with close ally Albert Anastasia. Known by many as the father of Las Vegas, Segal was murdered in 1947 after the financing of the Flamingo Hotel seemed to disappear.

10. Vito Genovese: Underboss of the Luciano Crime Family and father of the Genovese family.

11. Frank Costello

12. Albert Anastasia

13. Joseph Bonano

14. Tommy Luchese

15. Carlo Gambino

The 15:1 ratio (the leverage ratio) was the standard till in 2000 Hank Paulson as Cahirman of Goldman Sachs had it changed to 33:1. The profit from these loans would be 33 X 100 or 3,300 % not including interest charged for those loans. How did they hide that money they invested in business takeover and in money losing operations known as bad loans. This offset their profits and thus hide their loot. These money losing operations could be conglomerates run by their cronies, ethnic group, co-religionists, family or friends. This how American business is taken over by the Wall Street mafia.

The Italian mafia can't compare with the Wall Street mafia. Italian mafia may engage in loan sharking and charge 400% but the Wall Street crowd are raking in 3,300% not including the interest they charge for the loans.
0 Replies
 
talk72000
 
  1  
Reply Tue 12 Oct, 2010 02:43 pm
Prohition is a good example where religious morality should not be mixed with politics. Prohibition as laudable as it is on a moral level, is the cause of gangsterism in America.
0 Replies
 
talk72000
 
  1  
Reply Wed 13 Oct, 2010 08:30 pm
Wall Street with all the loot outsourced the money into hedge funds for the takeover of entire industries. If Wall Street's combined banks had $1 trillion to lend the corporations that paid for the loan say for 5 years would pay back principal and interest at 33:1 ratio would combined give back to Wall Street $33 trillion plus interest which they would charge 1 percent above the Federal Reserve Bank rate of say 5%. To hide the loot Wall Street lent out to pet projects and "bad" to help out their ethnic group to buy up companies. The Federal Reserve Bank would cover their tracks by printing money for them.
0 Replies
 
talk72000
 
  1  
Reply Wed 13 Oct, 2010 08:48 pm
Wall Street is the fifth column as it allowed another country to control the United States economically.
0 Replies
 
talk72000
 
  1  
Reply Sat 6 Nov, 2010 02:23 pm
It was the Swiss bank, UBS, that had Phil Gramm insert the Credit Default Swap in the legislation without anyone knowing about. Foreign influence?
0 Replies
 
talk72000
 
  1  
Reply Sat 13 Nov, 2010 01:54 pm
I just saw the dvd "Capitalism hits the fan" by Professor Richard Wolff of University of Massachusetts. He points out that wages have stagnated since 1970. Wages had been steadily rising from 1830 to the 70s. Automation and computers have increased productivity but wages have stayed the same. The corporations were making huge profits. Guess who took control of the corporations? Wall street and their cronies with the excess profits from loans with 15:1 leverage. The psychopathic corporate leaders gave themselves huge salaries and created the credit card system to put workers into further debt. The board of directors were also targeted by Professor Wolff as dictatorial and were not acting in the interest of democracy. The work place is not democratic. He sees that workers need to be in the board room.

There was also another dvd "Gold" that traces the impact of gold on society. The 1870 recession/depression was caused by the ship that was wrecked on its way to New York from the California gold mines. The gold was fueling the expansion of the US economy. When the gold was lost the economy took a nose dive as the banks could not lend money. In those days gold and bank loans were directly related. The banks could only lend out so much money when they had the gold.
reasoning logic
 
  1  
Reply Sat 13 Nov, 2010 05:48 pm
@talk72000,
Thank you for sharing I fond the video very good myself! this may not be the same video but I would think that it would share the same thoughts.

If anyone has more than half a brain they will study this video!


http://www.youtube.com/watch?v=TZU3wfjtIJY
talk72000
 
  1  
Reply Mon 15 Nov, 2010 05:40 pm
@reasoning logic,
It is the one.

Just substitute 'youtube' for 'url' and you will get the Youtube video

talk72000
 
  1  
Reply Tue 16 Nov, 2010 04:54 pm
Further to corporate welfare... MSN has an excellent article on corporations on the dole.

BP and Big Oil;Boeing, Airbus and Bombardier;Electric car makers;Coke, Pepsi and the soda industry;Goldman Sachs, Morgan Stanley and Big Banks;IBM Corporation;Peabody, Rio Tinto and Big Coal;HPI,ADM and Big Agriculture;The Southern Company

http://money.ca.msn.com/investing/gallery.aspx?cp-documentid=25824521
reasoning logic
 
  1  
Reply Tue 16 Nov, 2010 06:09 pm
@talk72000,
Like always very good info, I will have to pay close attention to your work!
talk72000
 
  1  
Reply Tue 16 Nov, 2010 06:45 pm
@reasoning logic,
You seem very interested in economics. When I took it in college I thought it was an easy subject and never took it seriously. But my life experiences helped me give more sense and looked at it with more urgency.
0 Replies
 
talk72000
 
  1  
Reply Wed 17 Nov, 2010 06:46 pm
@reasoning logic,
There is a documentary by Charles Ferguson "Inside Job" about the financial crisis.

http://en.wikipedia.org/wiki/Inside_Job_(film)

http://www.france24.com/en/20100517-financial-crisis-cannes-film-festival-charles-ferguson-inside-job-wang-xiaoshuai-chongqing-blues-jackson



Quote:
academics who are nothing more than open intellectual prostitutes for big business and economists who warned of the impending financial disaster and argued for greater regulation.

...in reality, the ‘free market’ only works for the benefit of the capitalist elite and this is rooted in nature of the system itself.

the surviving banks are paying out record bonuses, despite the fact that they owe their lives to government largesse

after World War II was free from crisis: the global recognition of the need for strong regulation. The greater stability may have been one of the factors contributing to the high rate of growth during this period. Government intervention had resulted in a more stable economy—and may have even contributed to the rapid growth and greater equality of that era

The Nixon administration did this by essentially separating the US dollar from gold backing, refusing any longer to exchange gold for American currency held by foreign countries. The action at the same time also ended the fixed currency relations among nations.


This watershed decision in 1971 was forced upon Nixon. It came about as a consequence of the postwar printing of paper dollars out of any alignment with the necessary gold backing, which had provided the basis for the expansion of the US economy rooted in the growth of this form of fictitious capital. The situation had reached the point by August 1971 where there was not enough bullion in Fort Knox to meet the demands of countries that were seeking to obtain gold for the dollars that they were holding.


deregulation by the ruling elite in order to increase the power of finance capitalism at the expense of the working population


The Vietnam war was so expensive that the US did not have enough gold.

http://www.wsws.org/articles/2010/nov2010/insi-n11.shtml

http://www.facebook.com/insidejob
0 Replies
 
Cyracuz
 
  1  
Reply Thu 18 Nov, 2010 05:29 am
@talk72000,
thanks for posting the vid Smile
talk72000
 
  1  
Reply Thu 18 Nov, 2010 01:53 pm
@Cyracuz,
You are welcome. The more people know what the corruption is and how they occur action could be taken to fix the problem.
Cyracuz
 
  1  
Reply Thu 18 Nov, 2010 01:59 pm
@talk72000,
As far as I'm concerned, the problem is capitalism and the fractional reserve banking practice.
talk72000
 
  1  
Reply Thu 18 Nov, 2010 02:01 pm
@Cyracuz,
It is deeper than that.
 

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