Monday, October 12, 2009

A VOICE FROM THE FINANCIAL INDUSTRY: GO FIND A FREAKING VENTURE CAPITALIST

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A GUY AT WAR WITH HIMSELF [his remarks to a TV host]:
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[To TV host] ... "You keep railing against the government; yet you want the government to loan directly to small business? Get real.

Personally, I'm sick and tired of subsidizing Capitalism.
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Most Americans don't realize it, but ... don't you get it? The government (us) subsidizes capitalism. We've been doing it for years.
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As a friend of mine said, we've got "Capitalism 201 Gone Wild".

Tell me ... what industries aren't being subsidized by our government?
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Know what's even more infuriating? ... come on ... it's the inequality in the system. Some industries and businesses are subsidized while others are not. Who makes these freaking decisions regarding who is worthy and who is not?
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Unfortunately, if the taxpayer refused to subsidize everyone starting today, this whole so-called "capitalistic" system would fail and anyone on the sidelines would get sucked in.

This is what gets me ... people decry socialism, but socialism has enabled everyone, including our freaking free enterprise system.
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Next time you want to start a business, market or invent something; go find a freaking venture capitalist or get a commercial loan. Don’t ask (us) the government to subsidize you or give you a loan.
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Better still, ... save enough money so you don't need a loan.

[To TV host], Look ... this system is now so complex and intertwined; and globally intertwined, we are teetering too close to the edge, for my comfort.

Pretty soon, the government (us) won't be able to prop up anyone.

Leave it to Republicans, and we'd be at war with North Korea, Iran, Iraq, Afghanistan, then they'd find some reason to occupy Pakistan.
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There would be no more United States of America. We'd be destroyed financially and every which way. World War III we do not need. "
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"But let's get back to the banks. Every sane one of us who works in the financial industry knows that banks are just middle men. They [retail banks] are great for checking accounts, small savings accounts, certificates of deposit and small collateralized loans [commercial banks - larger collateralized loans]; but getting banks involved in insurance products and highly speculative financial products is crazy.

Most of us knew that if we kept mixing our banking arm with our insurance and trading arms, we couldn't afford to sneeze; but there was no one in authority that wanted to step up to the plate and stop a money making runaway train.

Gramm-Leach-Bliley let us get as big as we wanted, allowed us to create all kinds of financial instruments; and allowed us to mix and match every freaking thing we could get our hands on; and we made a boat load of money."
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CONTINUED:
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"Insurance is the backbone of the financial industry. I find it interesting that no one links health insurance with financial services. Maybe they just don't talk about it.

Several weeks ago, I stated that the financial industry always keeps its base and returns to its base in times of trouble.

Health insurance profits, life insurance profits and other financial instruments and financial products (profits) have been keeping the financial industry alive and well for years. On the consumer side, annuities
will probably be our biggest retail financial product going forward.
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Heads will roll if Congress gets that public health insurance option into the legislation. Know what I mean? (laugh) Got to keep those "w" in Congress kissing a'...





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... What about Lieberman? (laugh) ... come on ... can he bend over and touch his toes? (laughing hysterically)
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My industry will always make money because it will always have its base (insurance). The wonderful thing about insurance, ... you can put insurance on anyone or anything, as long as there is insurable interest. The insurer is betting that he will never have to pay out or rarely pay out; but he's always got to stay ahead of the game and keep that money flowing in.
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Do we ever worry that we won't have enough reserves? Heck no ... as long as we've got friends in high places ... (laugh).
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Remember, all insurance is ... is spreading risk around. Right now, that risk is in the hands of the taxpayer.
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I hope someone knows how to control the risk, cause believe me, the government needs to stop propping up all these industries/businesses.
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With rare exception, ... sink or swim on your own dime. Where you get your money is your business, as long as it's not from the taxpayer.
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This is one area where Republicans and I are in accord; except those freaking idiots didn't follow their own ideology. They've been just as guilty as Democrats with their industry and business subsidies [corporate welfare].

Republicans and I differ in that I would have never allowed health insurance companies to go public. I would have made sure health insurance companies, that were mutual companies, remained mutual companies; where the policyholders had ownership rights, and with those rights, helped control the risk.
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As a public company, while its ability to raise capital increases, the risk of loss of capital also increases; plus the control of costs remains not with the policyholders (by their choice of management); but instead lies with a corporate board whose interests may not be in the best interest of the company or the policyholder.
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Hey, I'm not a completely "heartless" bastard.
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You, [TV host], want to keep what many health insurance companies currently are ... "for profit".
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Are you insane? That's one place that needs to be all non-profit or government run or government run combined with non-profit.

I will always differ with you on your competition/choice argument as long as you keep the health insurance companies "for profit".

... Ok, I guess I've veered off into a host of areas. Sorry ..

I'm Lawrence O'Donnell today." [No disrespect intended.]
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CONTINUED:
"That ridiculous Credit Card Act of 2009? … We [the financial services industry] didn't lose a damn thing; we quickly raised finance charges and added more bank fees. We’ve found lots of loopholes to get around those rules and regulations put in place. *
You've got to give us credit, we've been very successful making prostitutes of many members of Congress. Don't tell anyone, but we often snicker behind exclusive country club doors, while we're sipping "Hennessy cognac".

Look [TV host], the taxpayer bailed us out; and now we're laughing all the way to our bank. Couldn't get any sweeter. 


Oh, … and you know what's even funnier? All that lawsuit money that we paid out to Enron employees and pensioners in previous years? ... We've recouped most of that with the bailout.

I hate to say it [well not really], but you have to love the irony. We screwed the economy, millions lost their jobs, and now the losers have to come to us to borrow money. Ha!

The taxpayer has to borrow his own money to pay the bills. This is vintage Capitalism.


We’re raking in the money from finance charges and bank fees … cause, ... I’ll say it again … you’ve got no money; and you have to borrow money [from us] just to make ends meet. Boy do we have you by the balls.
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Heck, most Americans can’t even get through the week; some can’t get through the day, without credit cards. The 1% of the population, who control 90% to 95% of the wealth in this country, made sure of that.

We’ve even got small business hooked. Hell, we’ve got everyone hooked.

1 out of 6 Americans live in poverty. We’ll just continue to drain you dry, and continue outsourcing to other countries where we can exploit their labor and steal their resources, eventually draining them dry; and then we'll move on.

You can never trust us, or outsmart us."
Signed "Anonymous"

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Update: September 10, 2012
Bill Clinton: The Great Deregulator, by Robert Scheer



Update: October 5, 2010
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Update: March 2010
CHASING MADOFF, BY HARRY MARKOPOLOS

 
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6 comments:

Anonymous said...

READ ALSO:
Look at Macy's: U.S. tax code encourages companies to rack up huge debt

http://www.washingtonpost.com/wp-dyn/content/article/2010/08/06/AR2010080606249.html

BiPolObsessed said...

"Conservatives Push Absurd Lie that Wall Street Hustlers were innocent victims..."

http://www.alternet.org/economy/148454/conservatives_push_absurd_lie_that_wall_street_hustlers_were_innocent_victims_..._of_poor_people/

BiPolObsessed said...

"Conservatives Push Absurd Lie that Wall Street Hustlers Were Innocent Victims ... of Poor People"

http://www.alternet.org/economy/148454/conservatives_push_absurd_lie_that_wall_street_hustlers_were_innocent_victims_..._of_poor_people/

Anonymous said...

An article posted on Alternet is a must read:

"As the Country Falls Apart, It's Time for Our Revolution" by Ted Rall

http://www.alternet.org/story/148796/as_the_country_falls_apart%2C_it%27s_time_for_our_revolution

Clevelands Secret Club said...

READ THE LATEST:
"Dude, Where's My Mortgage? How an Obscure Outfit Called MERS Is Subverting Our Entire System of Property Rights" | | AlterNet by Yasha Levine, December 16, 2010

http://www.alternet.org/story/149189/dude%2C_where%27s_my_mortgage_how_an_obscure_outfit_called_mers_is_subverting_our_entire_system_of_property_rights?page=entire

Make sure the Republicans don't ram through a bill similar to House #573.

Clevelands Secret Club said...

"Financial Crisis Was Avoidable, Inquiry Finds" [NY Times]

http://www.nytimes.com/2011/01/26/business/economy/26inquiry.html
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YouTube Video:
http://www.youtube.com/watch?v=zF8rzxzwYfM