Richard (RJ) Eskow - 10 Reasons You Should be Suspicious of Wall Street's Facebook Fiasco

Three of Wall Street biggest and best-known financial institutions handled the Facebook IPO, so why were people immediately suspicious when the stock soared and then promptly tanked? Easy answer: Because three of Wall Street biggest and best-known financial institutions handled the Facebook IPO.

Each of them - Morgan Stanley, Goldman Sachs, and JPMorgan Chase - has a history of exactly the kinds of unethical and/or illegal behavior that might, just might, explain what happened with Facebook.

Mark Gongloff offers a good overview of Mr. Zuckerberg's Wild Ride, in which a stock that was offered at an IPO price of $38 soared to $45 and then plunged to its current (as of this writing) price of $31. A lot of people lost money - which means a lot of people made money, too.

Zuckerberg promptly sold his 30.2 million shares, netting a quick billion dollars and change. That tells you what he thinks of this investment.

Here are ten reasons why it makes sense to be suspicious of the Facebook IPO, starting with the fact that any overview of the three institutions which handled it might best be described as "rounding up the usual suspects":

1. Morgan Stanley has a history - and a culture - of tricking their own clients into making lousy investments.

It was Morgan Stanley's brokers who, in one notorious account, loved to brag "I ripped his face off!" after convincing one of the firm's own clients to buy a stock that the firm knew was lousy. (See Frank Portnoy's account in Fiasco.)

Read More:

http://ourfuture.org/blog-entry/2012052122/10-reasons-facebook-ipo-looks-very-suspicious-3-them-are-named-goldman-sachs-m

Harry Papachristou and Giles Elgood - Social Nightmare Foretold if Greece Heads for Euro Exit

In Athens, the homeless are on the streets in growing numbers, soup kitchens feed twice as many people as a year ago, and the poor are diving into garbage bins in search of scrap they can sell.

Greece is close to breaking point as it struggles with austerity targets set by creditors, but this is just a foretaste of the nightmare of unrest, hunger and even anarchy that could engulf the debt-crippled nation if it is forced out of the euro.

If the exact economic impact of such a move is hard to nail down - newly issued drachmas devalued by up to 70 percent, runaway inflation, a banking meltdown, a collapse in trade - the implications for ordinary Greeks crushed by the debt crisis are even harder to predict.

Without international bailout cash, salaries and pensions would go unpaid and violence, political extremism and uncontrolled emigration could quickly follow.

After voting inconclusively for parties that opposed foreign-imposed austerity, including the neo-Nazi Golden Dawn, Greeks head to the polls again in a month's time. This election is being portrayed internationally as a referendum on the single currency, even if Greeks do not yet see it that way.

Read More:

http://globalresearch.ca/index.php?context=va&aid=30953

Prof. James F. Tracy - THE FRAMEWORK FOR SUPPRESSING INFORMATION: Public Opinion in America's 21st Century Police State

The police state’s framework for suppressing information and opinion arguably threatens all forms of independent thought and appears poised to intensify as the “war on terror” continues. As the recent emergence of US plans for indoctrination in reeducation camps reveals, Western governments’ actual enemy is the capacity for a people to exercise critical thought en route to intervening in and altering political-economic processes.

Public opinion—defined by 19th century English political thinker William MacKinnon as “that sentiment on any given subject which is entertained by the best informed, most intelligent, and most moral persons in the community”—is fundamentally at odds with police state prerogatives also exemplified in recent US Department of Homeland Security documents.

The technocratic mindset of agencies such as the DHS and Federal Bureau of Investigation that oversee federal, state, and local policing procedures seeks to short-circuit and quell dissent by identifying transgressive thought that deviates from an assumed normalcy, then interlinking it with perceived threats or violent actions against the state. In a grand governmental exercise of Freudian-style projection, the DHS’s usage of inflammatory terms such as “terrorist” and “extremist” are routinely utilized to emphasize the nature and degree of various activist groups’ alleged deviant ideologies. This practice proceeds in light of the fact that most every “terrorist” act within the US since 9/11 has been carefully guided by the FBI or, as was the case with the initial “underwear bomber, Western intelligence agencies likely working in concert.

Read More:

http://globalresearch.ca/index.php?context=va&aid=30947

Gar Alperovitz - The Rise of the New Economy Movement

As our political system sputters, a wave of innovative thinking and bold experimentation is quietly sweeping away outmoded economic models. In 'New Economic Visions', a special five-part AlterNet series edited by Economics Editor Lynn Parramore in partnership with political economist Gar Alperovitz of the Democracy Collaborative, creative thinkers come together to explore the exciting ideas and projects that are shaping the philosophical and political vision of the movement that could take our economy back.

Just beneath the surface of traditional media attention, something vital has been gathering force and is about to explode into public consciousness. The “New Economy Movement” is a far-ranging coming together of organizations, projects, activists, theorists and ordinary citizens committed to rebuilding the American political-economic system from the ground up. 

The broad goal is democratized ownership of the economy for the “99 percent” in an ecologically sustainable and participatory community-building fashion. The name of the game is practical work in the here and now—and a hands-on process that is also informed by big picture theory and in-depth knowledge. 

Read More:

http://www.alternet.org/story/155452/the_rise_of_the_new_economy_movement

Richard (RJ) Eskow - JPMorgan Chase: Break Up The Big Banks Now. Here’s How.

When Jamie Dimon revealed that JPMorgan Chase had lost billions through risky and legally questionable trading, he said the losses would be about $2 billion and maybe more. Apparently it is more - a lot more. People in a position to know are saying the real figure is probably in the $5-7 billion range.

The JPMorgan Chase scandal - and yes, it is a scandal - shows us why we need to break up the big banks as quickly as possible.

But that won't happen unless we can get our hands around the real scope of the problem, which is probably far greater than we're being told. That means cutting through the enveloping shroud of jargon, euphemisms and double talk - "crap," if you will - that keeps us from seeing the situation as it really is.

Here's why we need to do it, and here's how.

Read More:

http://www.nationofchange.org/jpmorgan-chase-break-big-banks-now-here-s-how-1337698419

Ellen Brown - Cooperative Banking, the Exciting Wave of the Future

As our political system sputters, a wave of innovative thinking and bold experimentation is quietly sweeping away outmoded economic models. In 'New Economic Visions', a special five-part AlterNet series edited by Economics Editor Lynn Parramore in partnership with political economist Gar Alperovitz of the Democracy Collaborative, creative thinkers come together to explore the exciting ideas and projects that are shaping the philosophical and political vision of the movement that could take our economy back.

According to both the Mayan and Hindu calendars, 2012 (or something very close) marks the transition from an age of darkness, violence and greed to one of enlightenment, justice and peace. It’s hard to see that change just yet in the events relayed in the major media, but a shift does seem to be happening behind the scenes; and this is particularly true in the once-boring world of banking.

In the dark age of Kali Yuga, money rules; and it is through banks that the moneyed interests have gotten their power. Banking in an age of greed is fraught with usury, fraud and gaming the system for private ends. But there is another way to do banking; the neighborly approach of George Bailey in the classic movie It’s a Wonderful Life. Rather than feeding off the community, banking can feed the community and the local economy. 

Read More:

http://www.alternet.org/story/155454/cooperative_banking%2C_the_exciting_wave_of_the_future

Thomas Magstadt - The Derivative Economy: Can High Finance Get Any Lower?

Here's how it works.  You give your nest egg to a band of Wall Street crooks with a name that starts with initials like "J.P." or perhaps one with the word "Gold" in it.  They play Russian Roulette with your life.  Got it?  That's all you need to know about the sleazy side of corporate capitalism in the New Derivative Economy.  The other side of capitalism, the side that isn't sleazy, is receding faster than you can say "Jamie Dimon".    

Can high finance get any lower?  Stay tuned; if it can, it will.  That's because there's nothing to prevent the same bunch of rogue "risk managers" from pulling the same shenanigans and hijacking the hopes along with the savings and pensions of millions of people.  People who entrust hard-earned money to bankers who pay them less than one percent on cash savings, assess a proliferating variety of fees for dubious services, and foreclose on unemployed homeowners who can't meet the monthly installments on undocumented loans the banks should never have made in the first place.  The very same bandit bankers who have proven beyond a shadow of a doubt that they cannot, in fact, be trusted with anybody else's money.

The mythological "free market" is not free.  It is a slave to the stock market which is manipulated and, indeed, exploited by investment bankers, fund managers, and a new breed of free-booting financial con artists.  Remember Enron?  The late Kenneth Lay?  His partner in crime, the convicted co-swindler, Jeffrey Skilling, now serving a very long prison sentence?  How about Bernie Madoff, the Ponzi scheme pirate?  Big time financial fraudsters who were finally brought down.  Now try to name a single profiteering peddler of toxic assets who has been indicted for similar crimes since the massive 2008 financial mudslide?  You can't, but don't feel bad: there aren't any.

Read More:

http://www.nationofchange.org/derivative-economy-can-high-finance-get-any-lower-1337601980

Emily Flitter - Exclusive: U.S. lets China bypass Wall Street for Treasury orders

China can now bypass Wall Street when buying U.S. government debt and go straight to the U.S. Treasury, in what is the Treasury's first-ever direct relationship with a foreign government, according to documents viewed by Reuters.

The relationship means the People's Bank of China buys U.S. debt using a different method than any other central bank in the world. The other central banks, including the Bank of Japan, which has a large appetite for Treasuries, place orders for U.S. debt with major Wall Street banks designated by the government as primary dealers. Those dealers then bid on their behalf at Treasury auctions.

China, which holds $1.17 trillion in U.S. Treasuries, still buys some Treasuries through primary dealers, but since June 2011, that route hasn't been necessary.

The documents viewed by Reuters show the U.S. Treasury Department has given the People's Bank of China a direct computer link to its auction system, which the Chinese first used to buy two-year notes in late June 2011.

Read More:

http://www.reuters.com/article/2012/05/21/us-usa-treasuries-china-idUSBRE84K11720120521

Paul Buchheit - How the Ultra-Rich Betray America

The betrayals come in many forms. Here are a few of the more outrageous, and destructive, examples:

Evasion: Corporations suddenly stopped meeting their tax responsibilities

While corporate profits have doubled to $1.9 trillion in less than ten years, the corporate income tax rate, which for thirty years hovered around the 20-25% level, suddenly dropped to 10% after the recession. It has remained there for three years.

We are seeing a manifestation of the Shock Doctrine. Corporations are using the national emergency of the financial collapse to make a statement about taxes, and a traumatized nation is too preoccupied to do anything about it.

Delusion: Technology companies won't admit that much of their 'innovation' is due to public assistance

According to the report Funding a Revolution, government provided almost half of basic research funds into the 1980s. Federal funding still accounted for half of research in the communications industry as late as 1990. Even today, the federal government supports about 60 percent of the research performed at universities.

Read More:

http://www.commondreams.org/view/2012/05/21

Barbara Ehrenreich - Preying on the Poor

Individually the poor are not too tempting to thieves, for obvious reasons. Mug a banker and you might score a wallet containing a month’s rent. Mug a janitor and you will be lucky to get away with bus fare to flee the crime scene. But as Business Week helpfully pointed out in 2007, the poor in aggregate provide a juicy target for anyone depraved enough to make a business of stealing from them.

The trick is to rob them in ways that are systematic, impersonal, and almost impossible to trace to individual perpetrators. Employers, for example, can simply program their computers to shave a few dollars off each paycheck, or they can require workers to show up 30 minutes or more before the time clock starts ticking.

Lenders, including major credit companies as well as payday lenders, have taken over the traditional role of the street-corner loan shark, charging the poor insanely high rates of interest. When supplemented with late fees (themselves subject to interest), the resulting effective interest rate can be as high as 600% a year, which is perfectly legal in many states.

It’s not just the private sector that’s preying on the poor. Local governments are discovering that they can partially make up for declining tax revenues through fines, fees, and other costs imposed on indigent defendants, often for crimes no more dastardly than driving with a suspended license. And if that seems like an inefficient way to make money, given the high cost of locking people up, a growing number of jurisdictions have taken to charging defendants for their court costs and even the price of occupying a jail cell.

Read More:

http://www.tomdispatch.com/blog/175543/