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SEC’s Salvo In The New War Against Insider Trading & Credit Default Swaps (from HP May 6th, 2009)

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Insider trading has a new face. Credit default swaps, long one of the least understood and least regulated sets of financial instruments can be used for insider trading in a similar manner to stocks, but the government has never brought a case about illegally gotten CDS profits. That changed yesterday and it could be the beginning of a new wave of investigations by the SEC.

Leveraged Buy Outs 101 from Wikipedia

A leveraged buyout (or LBO, or highly-leveraged transaction (HLT), or "bootstrap" transaction) occurs when a financial sponsor acquires a controlling interest in a company's equity and where a significant percentage of the purchase price is financed through leverage (borrowing). The assets of the acquired company are used as collateral for the borrowed capital, sometimes with assets of the acquiring company. The bonds or other paper issued for leveraged buyouts are commonly considered not to be investment grade because of the significant risks involved.[1]

The Problem With A Jobs Bill – And With Everything Else In This Financialized Economy

Readers: This is the second article pasted here on leveraged buy-outs. My next posting will be a re-posting of material from Wikipedia specifically on Leveraged Buy-Outs. The article below should be more understandable with a basic knowledge of what a Leveraged Buy-Out (LBO) is and how they operate. A key point is that within a LBO the workers are fully treated as an expense only in the process to create double digit returns on the leveraged capital.

Companies As Buy-And-Sell Commodities - Workers, Customers and Country As Costs By Dave Johnson

Readers: this is the first article that we have published here on leveraged buy-outs. It is yet another dimension of the financialization of economics which was a product of Wall Street greed and the availability ZIRP money from Japan and now from the US and UK. As an example the money pushed through Congress supposed intended the fund green technology projects primarily created employment in China, not in the US.

Dubai debt problems cast shadow over region By BARBARA SURK (AP)

Readers: I wonder if this means that Halliburton will move its main corporate office back to the US. This obviously will disappoint a large number rich people who were looking for a safe place live after extracting as much wealth as they could from actual communities. Having a sea for a moat on one side and a desert on the other side as a barrier to threatening activists and critics of corporate policies sounds like a castle strategy to defend against peasants in revolt.

Bailed-Out AIG Forcing The Poor to Choose Between Running Water and Food, 11/26/09 by: Yasha Levine | AlterNet

Readers: Please note that as one result of the AIG bail-out that the US Government owns 80% of AIG's shares, but refuses to exercise control of its management. THIS is what Free Market and financialized economics looks like. Admin.

Thanks to AIG, some of the poorest residents of rural Kentucky learned you can always be made poorer by corporate villains.

Some stories don’t end well in this battle for justice — A Smiling Judge Refuses to Get it Nov 26, 2009


Stop Socialism for the Rich: Nationalize Wall Street by Les Leopold


Joe Biden's father had it right: "It's socialism for the rich and capitalism for the poor." How did we get here?

More than thirty years ago we embarked on a grand deregulatory experiment. The financial sector was unleashed from New Deal-era controls. We were told this would lead to great prosperity and that free free-markets would police themselves.

The experiment failed.

Why States Going into the Banking Business Would be a Distraction, not a Solution to their Fiscal Problems

Readers: This is effectively a review and rebuttal of an article by Ellen Brown "Job Losses? Not in North Dakota: A Stimulus Plan That Really Works" published at HuffingtonPost (see and other places. I have not read Ellen Brown's book yet, though Jamie Walton's critique seems to be spot on.

US Rep. Marcy Kaptur Takes on Foreclosures, Nov. 26, 2009 The Nation, written by Greg Kaufmann

Before President Bush left office, Representative Marcy Kaptur visited then-Treasury Secretary Henry Paulson Jr. and presented him with a list of all of the people in her district whose properties had been foreclosed. Although each page included four columns of names, the full list still stretched all the way down the steps of the Treasury Building to the street below when unfurled.

Kaptur was able to get the administration to form a task force composed of representatives from several agencies who were supposed to work with local stakeholders to address the foreclosure crisis.

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