This is among the top stories of the year, if not the decade. If you havent read it, you will not have a clue whats going on in the world around you regarding war, economics & finance, business (hint: its ALL business), the heat in your home and practically everything that affects our lives collectively and personally. In a nutshell: absolute and total global monopoly is the name of the game, and the insider investment fix is in. Matt Taibbi puts this together like nobody else, in one long, in-depth and detailed report on the extent of predatory corporate maleficence in the world today. Its real, its scary, and its already here. - Bill The Vampire Squid Strikes Again: The Mega Banks Most Devious Scam Yet Banks are no longer just financing heavy industry. They are actually buying it up and inventing bigger, bolder and scarier scams than ever by MATT TAIBBI FEBRUARY 12, 2014 Call it the loophole that destroyed the world. Its 1999, the tail end of the Clinton years. While the rest of America obsesses over Monica Lewinsky, Columbine and Mark McGwires biceps, Congress is feverishly crafting what could yet prove to be one of the most transformative laws in the history of our economy – a law that would make possible a broader concentration of financial and industrial power than weve seen in more than a century. But the crazy thing is, nobody at the time quite knew it. Most observers on the Hill thought the Financial Services Modernization Act of 1999 – also known as the Gramm-Leach-Bliley Act – was just the latest and boldest in a long line of deregulatory handouts to Wall Street that had begun in the Reagan years. Wall Street had spent much of that era arguing that Americas banks needed to become bigger and badder, in order to compete globally with the German and Japanese-style financial giants, which were supposedly about to swallow up all the worlds banking business. So through legislative lackeys like red-faced Republican deregulatory enthusiast Phil Gramm, bank lobbyists were pushing a new law designed to wipe out 60-plus years of bedrock financial regulation. The key was repealing – or modifying, as bill proponents put it – the famed Glass-Steagall Act separating bankers and brokers, which had been passed in 1933 to prevent conflicts of interest within the finance sector that had led to the Great Depression. Now, commercial banks would be allowed to merge with investment banks and insurance companies, creating financial megafirms potentially far more powerful than had ever existed in America. All of this was big enough news in itself. But it would take half a generation – till now, basically – to understand the most explosive part of the bill, which additionally legalized new forms of monopoly, allowing banks to merge with heavy industry. A tiny provision in the bill also permitted commercial banks to delve into any activity that is complementary to a financial activity and does not pose a substantial risk to the safety or soundness of depository institutions or the financial system generally. Complementary to a financial activity. What the hell did that mean? From the perspective of the banks, says Saule Omarova, a law professor at the University of North Carolina, pretty much everything is considered complementary to a financial activity. Fifteen years later, in fact, it now looks like Wall Street and its lawyers took the term to be a synonym for ruthless campaigns of world domination. Nobody knew the reach it would have into the real economy, says Ohio Sen. Sherrod Brown. Now a leading voice on the Hill against the hidden provisions, Brown actually voted for Gramm-Leach-Bliley as a congressman, along with all but 72 other House members. I bet even some of the people who were the bills advocates had no idea. Today, banks like Morgan Stanley, JPMorgan Chase and Goldman Sachs own oil tankers, run airports and control huge quantities of coal, natural gas, heating oil, electric power and precious metals. They likewise can now be found exerting direct control over the supply of a whole galaxy of raw materials crucial to world industry and to society in general, including everything from food products to metals like zinc, copper, tin, nickel and, most infamously thanks to a recent high-profile scandal, aluminum. And theyre doing it not just here but abroad as well: In Denmark, thousands took to the streets in protest in recent weeks, vampire-squid banners in hand, when news came out that Goldman Sachs was about to buy a 19 percent stake in Dong Energy, a national electric provider. The furor inspired mass resignations of ministers from the governments ruling coalition, as the Danish public wondered how an American investment bank could possibly hold so much influence over the state energy grid. There are more eclectic interests, too. After 9/11, we found it worrisome when foreigners started to get into the business of running ports, but theres been little controversy as banks have done the same, or even started dabbling in other activities with national-security implications – Goldman Sachs, for instance, is apparently now in the uranium business, a piece of news that attracted few headlines. Continue to the full article (please) at the link, below: rollingstone/politics/news/the-vampire-squid-strikes-again-the-mega-banks-most-devious-scam-yet-20140212
Posted on: Mon, 10 Mar 2014 05:22:38 +0000
Trending Topics
Recently Viewed Topics
© 2015