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Financial Free Fall Worsens

Published 03/17/08 Economy In Crisis - Print Article
E-mail - editor@economyincisis.org

From The Guardian:

For economic commentators who have been predicting gloom and doom, this could be the big one. The markets have resumed their tailspin despite a rescue for Bear Sterns, the investment bank that has come a cropper because of its ill-fated expansion into securities based on sub-prime mortgages.

Is there some biblical justice here? Banks that basically tried to screw the poor by dangling unsuitable home loans to them are now reaping the whirlwind. The problem is, of course, that those at the top got their bonuses, leaving the rest of us to face the consequences of reckless banking behavior.

Larry Elliott, the Guardian's economics editor, is in typically robust form, arguing that Americans have been conned.

"They have been duped by a bunch of serpent-tongued hucksters who packed up the wagon and made it across the county line before a lynch mob could be formed."


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Article Comments From Readers

guest says "Stock Market" on 03/29/08
Folks who have money to gamble on Wall Street and can take losses or advantage of business outsourcing to China do not represent the majority of American citizens.

Many people I know are just struggling to get by and don't have a dime to invest in some risky investment. Look what just happened to Bear/Stearns: investors lost their shirt, taxpayers footed the bill for the bailout and the exec's walked away not only unscathed, but with bonuses.

People do flock to the malls, but not always on a shopping spree. Seniors like to get out and walk. Some folks go for a bite to eat. Others like window shopping. Bulk mall volume may be a misleading indicator of prosperity, savings and investments.

The figure of 12,200 of the DOW is certainly meaningful to those who literally have money to burn or lose or gain. The majority of American citizens have jobs that scarcely allow them to make any savings and investments. Day slaves for an ungrateful country that would sooner throw away its own young citizens in the deserts of Iraq and line the pockets of Blackwater than invest in schools, hospitals,
social security, or making a better life for the actual citizens.

guest says "What recession? What crash?" on 03/29/08
Just because people are at the malls and are buying food like never before does not mean they have money to back it up. Ever hear of credit cards, Johnny Sunshine? Do you know how many people have borrowed on the equity on the house to pay their bills and eat and shop? Most of the "Coasters" and a lot of folks in the larger cities. And that's why the markets will soon be reporting on record foreclosures on upscale homes. The stock market does not effect the majority of American workers, so your point is not validated. I would say stop watching FoxBusiness News and pay more attention to FT.com.

guest says "What recession? What crash?" on 03/28/08
All this talk of nonsense recession and stock market problems is just that. TALK! The stock market is doing great at 12,200. Not bad. People are still shopping at the malls, buying food like never before etc. Atleast out here in SoCal. So what's the big deal with our economy? Bunch of gloom and doomers on here. Everything will be alright by this summer!

guest says "What recession? What crash?" on 03/28/08
All this talk of nonsense recession and stock market problems is just that. TALK! The stock market is doing great at 12,200. Not bad. People are still shopping at the malls, buying food like never before etc. Atleast out here in SoCal. So what's the big deal with our economy? Bunch of gloom and doomers on here. Everything will be alright by this summer!

guest says "What recession? What crash?" on 03/28/08
All this talk of nonsense recession and stock market problems is just that. TALK! The stock market is doing great at 12,200. Not bad. People are still shopping at the malls, buying food like never before etc. Atleast out here in SoCal. So what's the big deal with our economy? Bunch of gloom and doomers on here. Everything will be alright by this summer!

guest says "Proved right" on 03/28/08
Looks like the Chairman (James Cayne) of Bear/Stearns will get away with it. He cheated. He lied. He bankrupted the company, and he walks unscathed with millions in compensation for "talent".

Crime pays like never before.

On Thursday, March 27th he dumped his shares when they reached a new "low" high of $10.83.

He walks away with a cool $61.3 million.not bad for a day in the life of a white collar criminal.

What do the shareholders get?
What does the American taxpayer. Sucker punched with the bailout tab of 30B.

Its astounding to me that such organized theft, deceit, cheating, incompetence aided by a socialist style bailouts of capitalist investment banks goes almost completely unnoticed and unpunished.

Capitalism celebrates the wicked and tramples the poor.

guest says "Guest is spot on" on 03/20/08
To top it off it looks likes Alan Schwarz (CEO of Bear Stearns) will actually get away with it.
In America crime pays when you are a CEO:
Ken Lay-got away with it. Died but his family inherited his stolen loot.
Dick Cheney: moved his fortunes from Halliburton to the Isle of Man to outmanuever the IRS and fail to pay his fair share in taxes.
Michael Milken: 80's Junk Bond King. Served a short stint in prison, got released for good behavior and being a "model prisoner". Kept the millions looted from stock holders who bought his junk bond scheme.
Bill Gates: Relocated Microsoft over to Ireland to dodge US taxes even though US workers built his business to the powerhouse it is today.

Why play by the rules when the wealthy steal, lie, cheat our society and get away with it most of the time. Perhaps Justice is just a fool's delusion in the USA?

guest says "Corporate Socialism" on 03/18/08
Wow! The bail out and fire sale of Bear/Stearns by the Fed displays not only the hypocracy of free market capitalism to function properly according to its own rules, but worse, the corrupt system is perpetuated through the rape of the the taxpayer money and shareholder property.

Sinful Injustice!

Left unchecked, Capitalism devolves into Plutocracy with billions of slaves bowing and laboring to appease the callous corporate elites.
The health, happiness, and welfare and economic justice of our nation and its citizens has been sacrificed on the alter of corporate capitalism to prop up obscene ceo compensation and entrenched corporate corruption.


In any other country this is known as Fascism.