The Securitization Boondoggle By: Mike_Whitney

Readers: This is a very basic and very clear description of the securitization process, why it is a major problem, and why the efforts to re-establish the process as it was by Bernake and the mogouls of Wall Street is a very bad idea. Unfortunately, it will be this effort which will continue the collapse of the global economy. This a perfect example of the fallacy of wealth supposedly making a person or persons smart.

Oct 10, 2009 - 05:56 AM


Readers: Lester Brown is a long time sustainability advocate and has been involved in many efforts in this direction. The way he is using the word "Ponzi" is very close to the analytical way that Hyman Minsky uses it. In effect the difference between a Ponzi scheme and a non-ponzi scheme is a matter of how the process is managed and of course its transparency for those involved. Lacking the actual accountability and transparency the process relies upon fraudulent delusions of limitless wealth extraction.

5 Ways the Government Used Our Money to Save Big Banks and Screw Us

By Nomi Prins and Christopher Hayes, The Nation. Alternet
Posted September 26, 2009

The government hasn't exactly been forthcoming about how
it has made buckets of money available to the banking
sector. But here's what really happened.

As we mark the end of the first year of the financial
bailout, the public seems to regard the government's

Inflation: Too much money chasing too few goods? – Hardly! by Robert Poteat via the AMI

Readers: this the lead essay of the sixth issue of the American Monetary Institute Bulletin, The Money Scene. At the AMI site link ( you can add your comments to that blog

The essay begins here: That more money is available than goods is a nearly axiomatic definition of inflation in economic texts, media, and politics. Empirical data from direct observation indicates it is not true in the current economic environment.  

The Demise of the Dollar

Readers: when this happens look for major repercussion on both Wall Street and in the auctioning of US Treasury Bonds. The high and mighty is about to be kicked to the curb. I don't like being on the down stream end of this, and it has been inevitable since at least 1973. This re-alignment will also have a major effect on on the US-Israel relationship.  FYI this article has been criticized in part because the author is typically a political commentator focusing on the middle east, and is not a macro-level economist.

Progressives and the Budget Deficit

Readers: This a fairly concise statement of the current economic situation in the US. Perhaps it should be subtitled as "Why are budget deficits to bail out the privatized banking and speculative finance sector at the public's expense a reasonable response when the need for a bail out of productive economics and of our communities not a reasonable response to this situation??" admin



Reader: This article and the related Kansas Supreme Court Decision points out another legal weakness in the whole financialization by securitization process. This one is also very basic to the nature of contract law. The article also points out a lesser known strategy behind the US treasury and US Federal Reserve bail-outs of the primary investment banks who have created the economic collapse.

The Importance of Public Banking" by C.P. CHANDRASEKHAR

A very straightforward and concise description of why banks need to be made public institutions. This provides an example of what the banking industry would be like if its profits weren't privatized and its losses socialized. admin

Public ownership of banks, besides preventing the system from plunging into periodic crises, delivers many growth and welfare benefits.

Selling Death: Wall Street’s Newest Bubble By L. Randal Wray, Univ.of Missouri, Kansas City

When Wall Street’s commodities bubble crashed last year, I asked whether the next bubble might be in securitized body parts. Wall Street would search the world for transplantable organs, holding them in cold storage as collateral against securities sold to managed money such as pension funds. Of course, it was meant to be an apocryphal story about unregulated banksters gone wild. But as the NYT reports, Wall Street really is moving forward to market bets on death.

Judge Overturns Bank Of America-SEC Settlement Over Merrill Bonuses From Huffington Post STEPHEN BERNARD | 09/14/09 07:11 PM |

Readers: The unstated detail below is that given the amounts of money dispensed as bonuses and the amounts of money lost by investors the $33 million that was proposed as the basis for a settlement is a pittance. This refusal by the judge involved in this case to accept the proposed settlement also amounts to a statement that the SEC has been deeply suborned in favor of ignoring the highly questionable practices or to appropriately respond to the criminogenic culture of Wall Street. In effect through political bribery and other accommodations the SEC has become a co-conspirator. Admin.

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