The global economic crash that we’ve entered into is going to be more disastrous for capitalism than was the case for the Great Depression. This is because now, the system has no way to stabilize itself amid the widespread impoverishment and loss of profits that will ensue. After the Great Depression, the United States and the other core imperialist countries moved towards welfare statism, neutralizing the class conflict that had been arising amid the crisis. But no such fix will come during this even greater shock to the system.
Back in January upon coming into office, Syriza probably could not have won a referendum on whether to pay or not to pay. It didn’t have a full parliamentary majority, and had to rely on a nationalist party for Tsipras to become prime minister. (That party balked at cutting back Greek military spending, which was 3% of GDP, and which the troika had helpfully urged to be cut back in order to balance the government’s budget.)
Taxpayers are paying billions of dollars for a swindle pulled off by the world’s biggest banks, using a form of derivative called interest-rate swaps; and the Federal Deposit Insurance Corporation has now joined a chorus of litigants suing over it. According to an SEIU report:
Derivatives… have turned into a windfall for banks and a nightmare for taxpayers…. While banks are still collecting fixed rates of 3 to 6 percent, they are now regularly paying public entities as little as a tenth of one percent on the outstanding bonds, with rates expected to remain low in the future. Over the life of the deals, banks are now projected to collect billions more than they pay state and local governments – an outcome which amounts to a second bailout for banks, this one paid directly out of state and local budgets.
“A Debate On How To Get Out of the Euro” with Marshall Auerback, Michael Hudson, William K. Black and Stephanie Kelton in Rimini, Italy. What withdrawal from the Euro system would mean for households and businesses in Italy; how to manage savings; what would likely happen in a return to sovereign currency; how the government and National Bank of Italy could manage the change; monetary and fiscal policy; interest rates; bond markets; loss of national power due to the rules of the Stability and Growth Pact and the inability to set employment policy.
RussiaToday | August 12, 2010
This week Max Keiser and co-host Stacy Herbert look at Tier Terra and future crimes. In the second half of the show, Max talks to former banking regulator William K. Black about rackets and fraud in the financial sector.
Update 2 July 27, 2010 added Part 3
Update 1 July 24, 2010 added Part 2
via Dandelion Salad
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Bill Moyers Journal
April 23, 2010
William K. Black
As President Obama makes the case for strong financial reform, Bill Moyers sits down with veteran regulator William K. Black, who says Wall Street is already been breaking current rules.
William K. Black – professor of economics and the senior regulator during the S & L crisis – says that that the government’s entire strategy now – as during the S&L crisis – is to cover up how bad things are (“the entire strategy is to keep people from getting the facts”).
Indeed, as I have previously documented, 7 out of the 8 giant, money center banks went bankrupt in the 1980’s during the “Latin American Crisis”, and the government’s response was to cover up their insolvency.
Black also says:
There has been no honest examination of the crisis because it would embarrass C.E.O.s and politicians . . .
Instead, the Treasury and the Fed are urging us not to examine the crisis and to believe that all will soon be well.
Bill Moyers Journal
April 3, 2009
Glenn Greenwald and Amy Goodman
Bill Moyers talks with alternative media heavyweights Glenn Greenwald and Amy Goodman about what can and can’t be addressed in big corporate media. Amy Goodman and Glenn Greenwald are the first recipients of Park Center for Independent Media Izzy Award (named for I.F. Stone). Find out more about I.F. Stone’s life and legacy