Forum Post: How to really fight back against investment banks.
Posted 12 years ago on Nov. 27, 2011, 5:59 p.m. EST by FormerWS
(11)
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Many groups are trying organize a coherent approach to bringing down the "to big to fail" institutions.
What people need to understand is they hold more power then they can ever imagine. Right now the abuses from lending institutions which in many cases are blatantly fraud and usury, are victims a singular weakness.
They need people to make payments on debt. They need to have a certain amount of capital available to leverage due to government regulation.
There are groups right now trying to organize mass defaults on student loan debt. Right now there are second party groups betting that students will default. This will trigger those payouts collapsing the insurance companies that have made these commitments. It will also trigger investigations and mass media coverage on the lending practicing of the banks.
Second, controlling the foreclosure market. One of the greatest fears of these mass foreclosure companies is that people realize that as before the property is removed. YOU own it. Meaning you can sell the windows/boiler/septic tank ect... Many families by stripping their homes bare and selling it for parts before foreclosure can make 30-40k in sales. This at least will pay for rent for 2-3 years.
Pension funds, 401k's, mutual funds, private equity funds, ect.. Get your cash out of any of these institutions that are participating in speculative trading. Talk to your unions, cash out early do whatever it takes. These bets will fail and you will be left with nothing. As the institutions managing your money collapse like LB's and MFG their will be no consumer protection on your nest eggs.
Pulling cash out of the big banks is also critical as it affects their balance sheets and lowers the amount of speculation they can do. Petition a ban on second party derivative speculation, if its not your instrument why are you betting against it and insuring it? Its not legal to insure your neighbors life why is it legal to insure if your neighbor will pay his mortgage.
The most important factor to understand about these companies. They do not generate wealth for Americans or jobs, the actually are the reason Private investments are on a decline, film investments are almost impossible. Its so much more profitable to make money on money then on innovation now. If we don't stop this we will destroy our own economy.
Ban speculation and gambling in WS. This is the first step but for the future we need to look further and embrace whats coming.
You don't need to ban speculation wall street if you bring back Glass/Steagall and just get the gamblers out of the banking system. It's not the fact that wall street gambles that's the problem ----------it's the fact that wall street now expects us to cover their losses. It's not capitalism or the free market it's a welfare program for wealthy gamblers due to the repeal of Glass/Steagall and the CFMA There is a bill in congress that would bring it back http://thomas.loc.gov/cgi-bin/query/z?c112:H.R.1489.IH:
i like
"Pension funds, 401k's, mutual funds, private equity funds, ect.. Get your cash out of any of these institutions that are participating in speculative trading."
This. Don't let the "finance geniuses" push around and tell you otherwise.
You should still invest it in something to combat inflation, but the stock market is not it.
It's pretty much not stocks that created this problem, it's derivative products. CDO's and other Frankenstein bond products CDS's and futures. It's also not the fact that those products exist, it's that they are now tied in with public deposits in banks and insurance companies and pension funds. It's also the leverage that banks have been allowed to use to buy sell and trade these leveraged products. (lot of layers of leverage all collapsing). Believe it on not stocks and mutual funds are pretty regulated due to laws enacted after the 1929 crash. The'29 crash was caused in part by a derivative product, a leveraged mutual funds based on stocks, so wall street was forced to come up with new weapons of mass destruction based on bonds and insurance on those bonds.
If you still want to invest in stocks though its best for you to do your research and find out how much the CEO's are earning.
Most of these companies have low yields if they yields at all.
Question. Are you saying we should not let investment banks speculate and gamble?
Its secondary speculation that's collapsing the system. Derivatives can serve a purpose if they are not abused, they mitigate risk and therefore control interest rates on lending.
But speculation on other peoples debt should and must be banned. That is why we have the derivative disaster looming.
I completely agree, I hate the idea that they are allowed to do it. I was wondering, (and I am still trying to figure this all out) if the glass-stegal act, was re-instated, would it help. I think it just says the commercial banks can't gamble, investment banks, I assume would still be able to.
Financial gambling at its core is destructive to the economy, I have watched as companies approach first, second and third stage investment institutions and submit sound business plans with conservative P & L sheets, and purchase commitments.
The result of these entrepreneurs hard work? They are laughed at. The return rates on investments are so comically low compared to speculative investments that their is no incentive to invest in businesses anymore.
I am talking about companies that show 4-10% growth per quarter, out performing the stock market being turned down just because gambling pays more than creation.
I had no idea that was happening. So, you are saying all gambling should be illegal, for all banks, both commercial and investment. This issue is definitely on my top 3 list, but knowing little about banking/ investing.. What I am most unsure of, is how to we fix this?
Only by being proactive and doing what our governments refuse to do. Take the battle to the only source of power these companies have. Their wallets.
Its so much more profitable to make money on money then on innovation now. If we don't stop this we will destroy our own economy.
I agree, but if there are mass defaults on home and student loans and whatnot, well, yes, the banks will certainly be howling - but what about the people? It's true the finance sector isn't really functioning to create an economy anymore, but the credit they give out is still necessary for what's left of the economy to function. All kinds of businesses, small and large, depend on credit.
Maybe in the aftermath, we'd have a solid economy once again. But how do I survive in the interval?
I don't think they are lending out as much money as they should because they are so busy lending money to each other to gamble with.
The people will survive, by using the systems already put in place to protect themselves. The problem is this systematic destruction of value of the people will continue. Eventually it will happen, the difference is will you be the one in control? or will they come in the middle of the night and take your home, and wealth.
The people will survive if they go on the offensive. Action versus reaction, we need to work as a unified front against the institutions causing this calamity.
The problem is this systematic destruction of value of the people will continue.
Yeah it does seem that is where we are headed. But my question is, when I lose my job - and I will pretty much certainly lose my job if the banking system collapses completely - how do I get food? What are these "systems already put in place?"
while I don't know exactly your case, In general public assistance and bankruptcy are options to protect whatever assets you have. If you or anyone you support is disabled it helps considerably.
If you will lose your job because your actions or if its a inevitable then you have to make arrangements before hand. Sometimes surviving isn't pretty but we all need to do whatever it takes to make sure we are protected and our loved ones as well.
Start farming
Trust me, I'm thinking about it. Seems like one way or the other things are going south real fast.
Yeah its scary. But s and p futures are up right now. Loos like markets are taking one last grasp of air. I would get out and invest in water purificarion tablets. I hope for the best of luck. Time does seem to heal. The sun will still rise no matter what!
it's the fed reserve-This poem is about the Grace Tax Commission and the biggest hoodwink of all time.
The main complaint of the Occupy Wall Street Protestors to date is that there is no message to be said. The message, which follows these words, shall be repeated until the world restores her original fate, unity through diversity and an end to all hate. Occupy Wall Street and protestors around the world, chant this statement: “Put an End to the Federal Reserve!”
And in addition everyone needs to keep getting educated. All this goes on and the average people just ignore it. The dow might ralley tomorrow. But the banks are gearing up for collapse. World wide derivatives total 700 trillion. Hedged against what-? an ounce of gold and a mortage on a trailer park and our tax dollars. Dont GIVE them a bailout this time... http://m.examiner.com/examiner/pm_60964/contentdetail.htm?contentguid=ZaPkFWOM
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