Forum Post: Wake Up Occupy Wall Street - MF Global Collapse!
Posted 13 years ago on Nov. 4, 2011, 10:07 p.m. EST by garymoyer
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Last week three government financial watchdog agencies (including the SEC), which had likely been fast asleep, moved in on MF Global, which is run by Jon Corzine, past CEO of Goldman Sacks. At Mr. Corzine's direction the company put on an approximate $6.5 billion bet with 44/1 leverage, on European bonds. It turned out that they took the wrong side of the bet. According to the WSJ, Mr. Corzine spent all of last weekend trying to sell the company, but was not able to reach an agreement with a buyer because there was in excess of $600 million of depositor funds which were unaccounted for. It is expected that the depositor funds were used for margin requirements, which is illegal. At start of business Monday morning, MF Global filed for bankruptcy. This morning (Friday AM), Mr. Corzine abruptly resigned and hired a high powered attorney.
This is clear proof of the failed policies of the financial bailout! This illustrates the widely understood principle that the brokerage houses, which this administration allowed to turn themselves into banks, are still the same fiscally insane gambling houses that caused the collapse. This latest collapse was orchestrated by one of the commanders from Goldman Sacks and shows that he and his crony capitalists haven't learned a thing from the collapse!
Goldman Sacks paid some token fines for their illegal behavior, but CEO Lloyd Blankfein didn't pay a penny personally. This effort was politically expedient and the Obama administration was happy to put it behind them. Mr. Corzine happened to not be on the playing field during the collapse, so his personal fortune is still intact.
Now is the time to make sure Mr. Corzine is left in personal bankruptcy (as Warren Buffett has recommended for the CEO's of the organizations which needed to be bailed out by the taxpayers). If there was mixing of depositor funds, it will be time for the newly bankrupt Mr. Corzine to join Bernie Madoff in taxpayer provided accommodations!
Rise up Occupy Wall Street! This is why we formed. Lets put an end to these Wall Street thugs! Write the President, your congressman, the newspapers...everyone! Lets march on the SEC and the Fed and let them know that if this individual is not stripped of the 100's of millions that he stripped the 99% of while at Goldman Sacks, that their jobs are history!
Gary Moyer Occupy Baltimore
The ugly truth. America's wealth is STILL being concentrated. When the rich get too rich, the poor get poorer. These latest figures prove it. AGAIN.
According to the Social Security Administration, 50 percent of U.S. workers made less than $26,364 in 2010. In addition, those making less than $200,000, or 99 percent of Americans, saw their earnings fall by $4.5 billion collectively. The sobering numbers were a far cry from what was going on for the richest one percent of Americans.
The incomes of the top one percent of the wage scale in the U.S. rose in 2010; and their collective wage earnings jumped by $120 billion. In addition, those earning at least $1 million a year in wages, which is roughly 93,000 Americans, reported payroll income jumped 22 percent from 2009. Overall, the economy has shed 5.2 million jobs since the start of the Great Recession in 2007. It’s the worst economic downturn since the Great Depression in the 1930’s.
Another word about the first Great Depression. It really was a perfect storm. Caused almost entirely by greed. First, there was unprecedented economic growth. There was a massive building spree. There was a growing sense of optimism and materialism. There was a growing obsession for celebrities. The American people became spoiled, foolish, naive, brainwashed, and love-sick. They were bombarded with ads for one product or service after another. Encouraged to spend all of their money as if it were going out of style. Obscene profits were hoarded at the top. In 1928, the rich were already way ahead. Still, they were given huge tax breaks. All of this represented a MASSIVE transfer of wealth from poor to rich. Executives, entrepreneurs, developers, celebrities, and share holders. By 1929, America's wealthiest 1 percent had accumulated around 40% of all United States wealth. The upper class held around 30%. The middle and lower classes were left to share the rest. When the majority finally ran low on money to spend, profits declined and the stock market crashed.
Of course, the rich threw a fit and started cutting jobs. They would stop at nothing to maintain their disgusting profit margins and ill-gotten obscene levels of wealth as long as possible. The small business owners did what they felt necessary to survive. They cut more jobs. The losses were felt primarily by the little guy. This created a domino effect. The middle class shrunk drastically and the lower class expanded. With less wealth in reserve and active circulation, banks failed by the hundreds. More jobs were cut. Unemployment reached 25% in 1933. The worst year of the Great Depression. Those who were employed had to settle for much lower wages. Millions went cold and hungry. The recovery involved a massive infusion of new currency, a World War, and higher taxes on the rich. With so many men in the service, so many women on the production line, and those higher taxes to help pay for it, the lions share of United States wealth was gradually transfered back to the middle class. This redistribution of wealth continued until the mid seventies. This was the recovery. A massive redistribution of wealth. Then it began to concentrate all over again. Here we are 35 years later. The richest one percent now own well over 40 percent of all US wealth. The lower 90 percent own less than 10 percent of all US wealth. This is true even after taxes, welfare, financial aid, and charity. It is the underlying cause. No redistribution. No recovery.
The government won't step in and do what's necessary. Not this time. It's up to us. Support small business more and big business less. Support the little guy more and the big guy less. It's tricky but not impossible.
No redistribution. No recovery.
Those of you who agree on these major issues are welcome to summarize this post, copy it, link to it, save it, show a friend, or spread the word in any fashion. Most major cities have daily call-in talk radio shows. You can reach thousands of people at once. They should know the ugly truth. Be sure to quote the figures which prove that America's wealth is still being concentrated. I don't care who takes the credit. We are up against a tiny but very powerful minority who have more influence on the masses than any other group in history. They have the means to reach millions at once with outrageous political and commercial propaganda. Those of us who speak the ugly truth must work incredibly hard just to be heard.
Good post but I must disagree with calling these people capitalists. They most certainly are not. Thief, thug, criminal and bastard all seem more appropriate.