There are many reasons why the Occupy Wall Street movement could fail - a lack of cohesion, too many directions, no leadership, not enough money, and no representation, to name a few.
But what if it "succeeds?"
What would our investing landscape look like and what would we do about it?
I think that's an interesting question, especially since Occupy Wall Street has gained some traction, even taking on a global appeal. And more importantly, there are two other reasons the movement could succeed:
- First, our political system is broken and has deteriorated into little more than a fancy debating society.
- And second, the world's central bankers remain out of control; their bailouts are saving the irresponsible at the expense of the hardworking. Our regulators and Wall Street remain locked in an unholy alliance that has done very little to fix the underlying problems that have resulted from decades of bad fiscal policies, unsound monetary practices, and dysfunctional leadership.
You may remember the 1960s and the many protest movements that were very clearly focused on civil rights and the Vietnam War. You even may have been part of a few.
A lot of people thought they would go away, too. But Tom Hayden and his collection of Students for a Democratic Society didn't. Nor did Abbie Hoffman, Bobby Seale, and others. Their passion and that of thousands who joined in eventually succeeded in changing the course of social consciousness.
OWS could too.
By shunning the hierarchy that is organized politics and corporate America, there is the sort of strength necessary to address the growing disparity and the vanishing opportunities that are the new economic reality for millions of Americans.
I, for one, am hopeful that OWS will find the leadership needed to clearly delineate its goals and mandate change on the strength of the raw unvarnished potential that is now driving it.
I am also hopeful that OWS will succeed in raising the social consciousness to the point that living within our means becomes both an economic and political reality.
But that's just me. You may have entirely different feelings. That we might not agree is irrelevant.
Since OWS began, I've been watching carefully and doing a lot of deep thinking about what things might look like if OWS "wins" - however you define the term.
So here's a look at some of the potential changes that could take place if the movement succeeds:
- Fiscal responsibility and fairness will rule. As liberal as the movement is as a whole, many of the individual protestors - I've talked at the OWS camp here in Portland - remain fiscally conservative. They're not looking to get rich, they are looking for financial fairness. They're also seeking responsibility and accountability in key areas that matter to all of us, like bank accounts, medical payments, and simple survival.
- A new economic reality will arise. I am not sure exactly what this term means yet as the OWSers define it. This is not because I disagree with them. In fact, I don't on many issues. But for every articulate individual I've encountered who is part of the movement, I have also run across a variety of foul-mouthed cretins who have no concept of how economics work and whose antics diminish the OWS movement. Still, living within our means seems to be the overarching theme.
- Banking will be boring. Many OWSers have focused on corporate greed without really identifying the elements needed to rein it in. To me, this is part of the greater social justice narrative. It's also indirectly a political process because the bankers who got us into this mess are tied to the K-Streeters who, in turn, are tied to the special interest dollars used to "buy" our entire political system. If anything, the anger being directed at our bankers is a spectacular glimpse into the very roots of democracy and equality because it could come full circle come election time.
- Social investing will go mainstream. We've had social investing funds and social investing mandates for years. There are "sin"-free portfolios, portfolios that comply with the spiritual values of the world's major religions, energy-free investments and more. I can easily envision additional social investing categories based on the many divergent causes now wrapped up in OWS. Sadly, though, I can also envision Washington riding to the "rescue" with mandated investments designed to control what's left of our personal wealth as a result of the OWS movement. The biggest target is the wealth already accumulated in our 401k plans - more than $14 trillion at last count. Social security, mandatory healthcare, infrastructure...these are all thinly disguised taxes. If OWS truly represents the 99% as it claims, perhaps it's time to engage the big issues rather than let politicians dictate our choices regardless of which side of the aisle they sit on.
- Hard assets will back a new global currency basket. I'm not hearing any talk of this from OWSers; perhaps they haven't put two and two together yet. If there is to be equality and the gap between the haves and have-nots is to be closed, there has to be a reduction in debt and a corresponding increase in real assets. This will take a concerted, worldwide effort that may ultimately need to include a common currency or at least a common currency trade basket. In that sense, OWS may prompt the "new world order" long feared by conspiracy theorists.
This means OWS-friendly companies like Google Inc. (Nasdaq: GOOG), Apple Inc. (Nasdaq: AAPL), Facebook Inc. and other millennial-friendly companies will rise to the top of the investing pyramid. Meanwhile, industries associated with the establishment, like energy or finance, will face an uncertain regulatory environment. They also will have to deal with increasingly hostile public backlash. It will be a new world in which many former stalwarts will find themselves on the defensive.
I am not yet sure how this will manifest itself in the future but it seems to me that the concept of liberty is the undercurrent here and fiscal responsibility is the driver. People are enamored with the American dream and the right to succeed. What they forget is that liberty also includes the right to fail. It is not yet clear to me if the OWS movement has really internalized this. Nor is it clear that the OWS movement has collectively thought through the principles of liberty that put us in control of making our own decisions - for better or for worse. Socialism is not the answer but neither is the few ruining the lives of the many.
Milton Freedman reportedly quipped there is no such thing as a free lunch. Perhaps we are coming to the end of a free lunch society. I have to wonder.
Movements often start with noble ideas that are commonly accepted and often very hard to argue with. But if OWS fails to come into its own, I see self-aggrandizing politicians jumping into the void with draconian proposals that actually make things worse. Generally speaking, this is going to be bad for the markets and even worse for the preservation of personal wealth. It also speaks to shorting virtually the entire mainstream financial sector while investing in small, local community banks, as well as the infrastructure companies they fund.
That's the real key here. If OWS gets traction, it will carry the debate away from traditional politicians. Therefore, the real objective should be to change the agenda. The question is, can OWS get enough momentum to make the politicians yield to its will?
This is about as good an argument as any I've heard for continued investment overseas. The combination of overzealous politicians, punitive tax policies, and the involuntary redistribution of wealth that will inevitably hit us all - from the very highest earners to the very lowest - signal weaker financial markets ahead. The best choices will be companies doing the bulk of their business in foreign countries where their money (and their investment) is treated better. Until politicians understand that stretching the recovery does nothing to eliminate the excess, nothing is going to change.
I believe this game is already underway and has been for some time now. The United States fancies itself a player but, in fact, is being played. The dollar, which it tries to use as a weapon, is seen as a liability by a growing percentage of the world. This speaks to investing in creditor nations backed by real reserves rather than debtors with mountains of funny money they cannot possibly pay back. Hard currencies will be backed by countries with hard economies - right now that's the Asian countries led by China, warts and all. After the euro debacle, I doubt very seriously there is a nation on earth that will subordinate their currency to a pool of countries ever again.
News and Related Story Links:
- Money Morning:
The Gilded Age of Wall Street Remains Intact
Here Are 10 “One-Click” Ways to Earn 10% or Better on Your Money Every Quarter
Appreciation is great, but it’s possible to get even more out of the shares you own. A lot more: you can easily beat inflation and collect regular income to spare. There are no complicated trades to put on, no high-level options clearances necessary. In fact, you can do this with a couple of mouse clicks – passive income redefined. Click here for the report…
About the Author
Keith is a seasoned market analyst and professional trader with more than 37 years of global experience. He is one of very few experts to correctly see both the dot.bomb crisis and the ongoing financial crisis coming ahead of time - and one of even fewer to help millions of investors around the world successfully navigate them both. Forbes hailed him as a "Market Visionary." He is a regular on FOX Business News and Yahoo! Finance, and his observations have been featured in Bloomberg, The Wall Street Journal, WIRED, and MarketWatch. Keith previously led The Money Map Report, Money Map's flagship newsletter, as Chief Investment Strategist, from 20007 to 2020. Keith holds a BS in management and finance from Skidmore College and an MS in international finance (with a focus on Japanese business science) from Chaminade University. He regularly travels the world in search of investment opportunities others don't yet see or understand.
Your historical perspective could be improved for the sake of credibility but your article is excellent. Look up B D Colen. who is an author of numerous books and a reporter for the Washington Post during the late 60s thru the 80s.s Someone such as yourself needs to become the Woodward /Berstein of OWS. All the best, the best is yet to be.
I don't agree with all your points, but it is a thoughtful article. For myself, all I want out of this financial mess is a ban on shorting equities, so investing in good companies is less like going to Vegas, and some differentiation again among financial institutions, so banks get back to their core business. We have paid a high price for the loss of community-based banks. Oh and did I mention sending to jail some of these spoiled children who abused their clients' trust.
I totally agree Sarah. The "robo-traders" have ruined Wall St. The people in the US use to invest in companies they believed in or did business with themselves. This "ownership society" provided pride to all the investors. Now we have super computers making trades in miliseconds that do nothing for the good of society, yet make a few people a large amount of money.
Make traders hold their stocks for 30 days (or @ least 10 days) and the trust in Wall St will return.
Shorting is not the problem. Short sellers do honest research and can be a good source of warnings on fraudulent accounting practices which if listened to can save investors money. Besides, when they sell short they still have to buy the shares back.
Very interesting! And most of your conclusions about OWS are not necessarily bad. I'm still having trouble processing the 'fairness of taxing the rich' that also seems to be a theme of theirs. The 'rich' already pay the highest share of income taxes, while the lower 50% are left out of the income tax entirely………if we skew this tax even further, won't this erode the very base of capitalism? I too do not want to see the USA go even more toward socialism. Capitalism is not perfect, but it's still the best system around! How do we get the OWS crowd to see this fact as well?
Sorry, but we have three generations that have been schooled on the wonders of Socialism, without the pitfalls. Furthermore they have little understanding of History since it is not taught in a manner (if at all) that would provide an understanding of the past.
People who long for a revolution to throw out our constitution think the result will be different then when the peasant uprising in Russia got rid of the Czar. I bet they don't even know that 40 million people lost their lives because of that idea.
The OWS folks want global fairness . . . well, that's interesting, because to someone in Ghana . . . the OWS folks are wealthy, how well will they share?
The Galobal Meltdown was the fault of Govt, of both parties, but Dodd and Fwank should be locked up . . . Fwank oversaw Fanny/Freddie and Dodd was head of the banking oversite committee . . . both failed myserably. Trillions in "Funny" mortgages fenced all over the world by Wall Street, sure they took advantage . . . while the loons in govt watched and collected their campaign funds!!!
80% of Wall Street donations went to O'bammy and the Dimmicraps.
The people complaining about taxing the rich irritates me to no end. If the rich can't pay more taxes, then who? They are the only ones that can. We are in this problem for a lot of reasons, but one major one is all the tax breaks the rich get. Doesn't anyone see what I see? The democrats spend and tax and the Republicans borrow and spend. Look at the debt we have. With armageddon facing us, I have to wonder why we would want to go with your recommendations or anyones for that matter. These are sad days in America.
How much is enough?
capitolism is a horrible system, any system that has been used in the past is horrible….
The reason the "rich" get taxed so much is because the "rich" get most of the wealth. You can tax the poor if you like, but they cannot pay. I don't think a higher tax on the first 250k of anyones ADJUSTED GROSS needs more tax. But when some dufus is getting millions a year running a hedge fund he should be paying real taxes on it, not a Capital gains rate.
The issue of taxing the rich ultimately resolves to whether the rich can afford to pay taxes. As long as the affluent perceive that their resources remain intact without threat under a status quo government, then higher taxes remain unaffordable. However, if those resources were to suffer from some threat, and higher taxes would serve to continue access to those resources, then higher taxes would soon be perceived as affordable.
Since our government presently represents the interests of the affluent through bail outs, quantitative easing, structuring the increase in unemployment and underemployment for the sake of preserving capital (the resources of the affluent), ergo 0% interest rates to those "qualified" to borrow, members of both houses of government who are all affluent by the standards of the 99 will assure the wealthy and subsequently themselves that progressive taxation will remain unaffordable and all future tax increases will surely be born by the bottom 50 through flat taxes.
Flat taxes serve to ration basic resources needed by all, but due to the non discretionary nature of a flat tax, the lowest income earners will pay the greatest share of their income by consuming newly taxed non discretionary resources. The inelasticity of low incomes combined with a flat tax will mean that the ability of the bottom 50 to consume basic resources will be reduced, therefore preserving more resources for those with means of discretionary elasticity and a new flatter tax. When the upper 50 discuss the plight of the lower 50 not paying Federal Taxes, it should be considered that the lower 50 rather than prospering are melding into an income stasis on par with the bottom 15 of forty years ago which were then receiving government assistance. Lets look at the bottom 50. These are SS recipients; service industry workers; newly unemployed; start up entrepreneurs; students; new teachers; public safety employees; part time workers, etc. The bottom 50 are not joining Fortune 500 companies. Lets tax them.
I am amazed how the lower income groups give so much traction to a flat tax believing that a flat tax will finally cause the rich to pay more. They deserve what they want and will surely pay for it. I now understand why so many do not prosper and cannot keep what they have due to lack of educational reasoning. It is called "decreasing the tax rate and broadening the tax base". That sounds really good to the hopelessly stupid who happen to be products of 40 years of public education.
Rather than being concerned with the lower 50, the evaporating middle should be occupied with how to raise the incomes of the lower 50 so they can share in the alternative minimum tax. Also, today's strident middle should be very concerned about broadening the tax base in this economy because the probability of the present middle joining the new lower 60 is growing.
The Democratic house of 1986 under Reagan was the genesis for the flatter taxes we see today. The bill signed into law was the Tax Reform Act of 1986. "Referred to as the second of the two "Reagan tax cuts" (the Kemp-Roth Tax Cut of 1981 being the first), the bill was also officially sponsored by Democrats, Richard Gephardt of Missouri in the House of Representatives and Bill Bradley of New Jersey in the Senate."
Yes, we need more tax reform acts to lower tax rates and broaden the base. It is environmentally prudent.
OWS is also Acorn reborn. It is unfortunate because many people participating are not and do not necessarily have the same agenda as Acorn. If OWS does succeed, one of the few ways that the non-privileged has left to become better off will be closed off. OWS tends to think traders are these big hedge funds; in fact, the majority of them trade because they have no choice: no job, verge of losing their homes or have a job that pays diddly.
It is narrow minded indeed to think those people are unethical. OWS should be about ethics in corporations. It is not. It jus the same old redistribution rhetoric that we have seen before over and over again.
Could it be like the '60s? Yes, if the visionaries actually have a vision. I do not see that in OWS.
OWS, while not initially supported by me, due to its apparent left-leaning agenda, is now fully supported by me, a dyed-in-the-wool fiscal conservative. An item I wish this article had provided more information on, is the OWS desire to have a flat 1% tax on foreign exchange transactions. (As a Canadian, the US is our biggest trading partner. When the US sneezes, we catch a cold.) Add a 1% flat-tax on stock (and even bond) purchases and I can see the Wall Street (and Bay Street) fat cats hating this. If Wall Street hates something, it must be good news for the remaining 99% of us! This 1% flat tax should have no exemptions or exceptions whatsoever! Not size of purchase, not country of origin of the purchaser, not brokerage size, no sliding scale for size of purchase, no exemptions or exceptions to paying this tax to the Feds! Also 100% of the money collected should be remitted to the Feds, no monies should be withheld as a collection or handling charge, by the exchanges. This 1% money needs to be remitted electronically the next business day after it transaction it is based on is closed. No 3 month delay. DAILY remittances to a separate Fed Account (like that's gonna happen), for the express purpose of paying off the accumulated deficit.
This 1% tax would wipe out both our countries annual deficits, due to not having to pay interest on our rapidly shrinking accumulated debt. These '1%' monies must be shared (50% with the states and provinces, with a mandate that a quarter of that 50% go to the local level of cities and towns, for infrastructure, teachers, etc.,) based on population.
The huge fly in the ointment here is that all global administrations need to get on board. If even one or two countries do not charge the tax, they will then become the de facto internet 'location' for the set-up of companies merely to avoid this tax to benefit everyone. The only way around this would be to tax the stocks through each and every exchange on which they are sold (NYSE, TSX, DAX, etc., and not leave it to the individual brokerages to collect).
If an investor is prepared to pay $40 for a stock, a price of $40.40 won't derail this purchase. The only people this might harm will be the day-traders, who might only make 40 cents on that stock before selling it. Oh well! (No exceptions! – That way its fair for everyone.)
This tax will eventually be seen as the catalyst to reduce the tax burden on everyone, increase spending and an increased way of life for everyone, but we must act now.
This will allow manufacturing to reestablish here and green industries to establish and flourish in our cooperating countries, thereby reducing even more of the funds that are sent oversees to heat, cool and power our countries.
Neither Keith nor the OWS are thinking hard enough, nor across the necessary centuries.
This goes back to the French Revolution and the Holocaust, to the decollation and gassing of the wealthy. They don't want these to happen again. And – like almost every wealth-destroying major war – they started in a divided Europe.
So unite Europe!
The founding fathers of what became the EU decllared their aim: 'an ever deeper union'. As, though you have to dig, did the authors of the euro and eurozone. Europe's power elite are utterly determined upon a United States of Europe.
It isn't trying to protect Greece. This is about safeguarding its own long-standing hierarchy. Consequently the defence will be vastly more powerful. Greece won't be released till the collateral damage is minimised, when it will be jettisoned like the wreckage it is.
What can we peasants do?
Precious little. I argue for voting against every incumbent of every party for every elective office – which will bring forward the coups d'etat in both Britain and America, hopefully enough to destabiluise them. Maybe.
And maybe our masters will rule us kindly. After they murder Keith and myself.
Keith:
Very good article. I agree 100% that we are in need of a powerful revolution in America. Not violent but sane and to the point. Our political system is a sham, or perhaps 'scam' is a better term. The printing of dollars to cover debt that never should have been incurred, especially since the beginning of the Bush Administration, has finally caught up to us and is now coming to an end.
Thanks, Michael Upper
Thank you for excellent, well thought out comments about OWS. This could be the miracle that can save our nation and our democracy. All of the results you listed from a "win" for OWS are necessary for our future. Wonderful article. Thank you again.
Great article.
When a goverment sits back and lets 1/6 th of its home owners loose their homes, many more loose every thing they worked a life time for and watch and even facilitate the loss of jobs overseas that goverment is acting negligently if not criminally with its abndonment of its duty to its people.
Those in wall street who have taken million dollar bonuses and where instrumental in wrecking the economy have commited crimes against humanity and should be tried in the Hague, but will not.
Time for revelution!
I am not sure what OWS is trying to accomplish as nobody seems to be able to define what their objectives are. I'm not sure if they have ever sat down collectively and thought out how to define their objectives. Protests without any clear objectives are bound to fail.
JohnS, you fail to understand that although the tax bracket for the wealthiest taxpayers is higher than for the average taxpayer, the actual tax paid by the wealthiest tax payer is far less due to the loopholes they have for avoiding paying taxes on their full income. Thus by using tax loopholes, they actually pay little or no taxes. Instead, they pay lawyers and accountants to advise them on how to avoid taxes. That puts more of the tax burden on the DWINDLING middle class taxpayer. And that is one of the real reasons for the economic downturn in the U.S.. As more and more Americans are struggling to maintain their standard of living and cutting back on non-essential spending, U.S. companies are losing their consumer base and in turn are cutting back on investment in factories and employees. That in turn leads to more inflation and unemployment, which further erodes the consumer base in the U.S.. Until business and government can get together and figure out how to reverse this trend, there will be no recovery for the U.S. economy. With the current political attitude in Washington, nothing is being done because Congress has put their party politics ahead of the rights of the American people. They have lost sight of the reason we have "government by the people for the people".
Taxing the rich, redistribution of wealth, and all those catch phrases that the rich and famous have twisted and tea totled around are just nonsense. All that the OWS people are asking for is to go back to the good old days of balanced budgets and surpluses with the tax codes of the 1990's when this country saw its greatest increase in wealth and fiscal responsibilities. Thanks to the Bush tax cuts, the rich have been spoiled like rotten children given everything that they want. Now as spoiled children do, all they care about is their own selfishness. They would rather see the greatest country on earth fall to its knees in bankruptcy rather than give up one of their yachts or countless homes. Don't they realize that they would have nothing at all if the USA falls and the world goes back to the Dark Ages of Kings and Dictators?
Sounds like today's video games.
I agree with your points made! You stand out from most financial types in not clinging to the mathematics of previous centuries for investing and public policy. Times are a changin again.
I would go further on these points;
1. OWS didn't catch on iin the world, it is us catching up with the world.
2. Non violence is critical to OWS survival
3.Restoration of Glass Stiegel and Citizens United appeal are the simplest ways to dismantle K street.
4. Congress should wear uniforms like NASCAR drivers to show who funds them.
5. Nixon was our first communist president in controlling grain prices through Earl Butz at USDA
6. Stunningly, Reagan did not shout "Mr. Nixon tear down these subsidies."
7. The only problem with labor unions is they can't afford to compete on K Street. Voting is not enough. Danish Unions, for example do influence govt, and fund colleges for worker skill training.
8. Free markets fail miserably when used for management of human fears like death and destitution. Even the tea party, which is doomed now, is for law and order by the government. banking and disease care should be seen the same way. War is the ultimate free market for human fear, and how do we like that?
Hoping that the OWS does not get hi-jacked as appears to be the attempts by the Unions and the Redistribute Liberals.
Too many Wall Street tactics are counter-productive (Shots, Derivitives, Options, etc). Revert back to true investment into a company's future not its end (Venture Capital).
Great exposition, I am glad to see attempts to understand this movement. Every political or religious group likes to guess about what our Founding Fathers intended, I think they were a group like the OWS. Lots of ideas about what they didn't want, not so clear on how to make it happen. Similarly, they weren't all eloquent or even helpful to the cause.
As for removing the dollar from reserve currency status, I think the end result will be a huge savings for the U.S., not the Armageddon folks think it will be. Sure, rates will be higher, but consider the cost savings. Let American business interests fight their own wars, prop up their own puppet dictators and so on. We won't have to (or be able to) occupy half the World. Trade will get done on its own merits.
If we don't have a favorable balance of trade, we can't inflate our way out of it like the Asians. We won't be able to use the global credit card to kick the can down the road anymore.
Shorts (not Shots)
The article writer is really naive to think that if the OWS movement succeeds it would make things 'better'.
The majority of OWS people are a grab bag of un-informed and mis-informed people who are looking for a bigger piece of the pie without doing any cooking. They want to tear everything down and re-build according to their fantasyland Marxist ideals, even if violence is required to do it.
Some OWS protesters really do have legitimate complaints and I wish them well, but they are foolishly joining in with people who are using those legitimate complaints as cover for a dark agenda.
The US and world economic system just needs some relatively minor changes, not a complete OWS revolution.
When the whole world is involved as it is now, each minor change takes a lot of time.
But the majority of world leaders are working on this with the common goal of making the world economy and financial system safer and more fair. I believe they will succeed.
Thank you for this thoughtful commentary. It seems clear that OWS is a groundswell of everything from concern to outrage over where we are and what we are doing as a nation and a people, presented by a broad cross section of the American people. Is this not what American democracy was intended to be, and should be all about? For my part, I believe that although they have been the primary beneficiaries, corporate America is not the sole culprit here. I believe the unholy alliance of corporations and our government for the clear and obvious purpose of securing to themselves power and wealth, at the expense of the American people and nation, is why we are where we are. If OWS, and all of us, can synthesize and implement ideas that will return control and benefit to people… Continue the occupation! To dust off a rally cry I have not spoken since the late 60s… Power to the people!! You (we) go OWS!
Why is it that "fairness in taxing" always comes down to the total number of dollars paid by the 1% versus the dollars paid by the 99%? If we look at the "Social Security Tax" we see that anyone earning under $160,000 pays 16% in taxes on every dollar they earn (Remember: employer matches) to a maximum tax bill $25,600. If you earn $1,000,000 then your maximum tax bill is still $25,600 since it is only paid on the first 160K! Hmmm… What does that mean? If you earn 160K or less you get to take home 84 cents out of EVERY dollar you earn… on the other hand, the $1,000,000 earner has an effective tax rate of 2.56% and takes home 97.7 cents of every dollar earned!
How is that "fair?" I don't want to see a socialist tax that makes everyone equal in dollar terms (everyone earns the same amount), but how about we all keep 84 cents out of every dollar we earn?
Of course, IF the tax were applied to EVERY dollar, the tax RATE would be MUCH lower. In the simple example shown here:
$1,160,000 x 4.41% = $51,200 which is exactly what the "unfair" tax system takes in now!
Everyone takes home 95.56 cents from every dollar they earn! Now, I admit this rate may be too low when we take the 99% and 1% together, but it would definitely be lower than 16%!
Social Secutity tax is a tax to pay the benefits for SS. No matter how much you make, you don't get a percentage of your wages when you collect SS, you get the max benefit which is the same if you earned $160K or 100 times that.
The problem with "what's a fair tax" is that it always goes up. Soon it will be all you earn because it is needed by someone.
Capitalism is not perfect. Really. A CEO payes the workers the lowest possible wage they can so they get more money for themselves. That is how capitalism works. If you start your own business, a wal-mart will open up next door. That's how capitalism works. The middle class is almost gone, that's what capitalism does. The riots in Greece will look tame, compared what will happen here soon. They don't own guns in Greece. You analize what is going on but you have no anger or passion for which you are writing about. The public bailed out banks, then the bankers paid themselves even more money. When a banker shows up to work everyday what could he possibly do to deserve compensation in the millions? That is just how capitalism works? really?
Mr. Fitz-Gerald,
As usual, you present a superb piece.
The companies you cite as OWS-friendly are entities that function on the relatively unregulated Internet. If the government has its way, as is beginning to be discussed in cybersecurity circles—due to its fundamental structural importance—the Internet will get more-and-more regulated. If this is allowed to happen, like the energy and financial sectors before it, Internet companies will be forced to bed down with government; becoming crony capitalists like their ancestors.
What the OWSers don't understand is that the mechanisms needed to rein in the excesses they abhor will be: 1) too expensive to implement and 2) so restrictive to those businesses that it will make all areas they touch unprofitable. More ironically, previous excesses were actually made possible in the first place by the moral hazards and perverse incentives created by laws, rules, and regulations created to ostensibly prevent businesses from failing and visiting harm on the public. Regrettably, although the intentions may have been noble, the result evolved into a system that masked fundamental risk, pushing weaknesses so far out into the future that the day of reckoning became apocalyptic.
This further reinforces Friedman’s quip about there being no free lunch, which should be augmented by adding that the longer the meal remains unpaid for, the more expensive the eventual bill becomes.
Failure, the cleansing elixir of capitalism, has been so perverted by the well-meaning that what now remains is a lethal concoction that turns its imbibers into walking corpses constructed of debt.
In the end, people want their cake and eat it too. After all, I refuse to accept that democratically-elected governments are anything more than a reflection of their people—and that includes the current protesters. If that’s indeed the case, it simply proves that OWS wants what it wants, but not what it needs.
I extend my thanks and compliments to Keith for having the courage to express his thoughts on this important subject in a public forum.
I think what we lack as a society is a common vision for the kind of society we want. The foxes have been in charge of the hen-house for too long, in the process imposing their own vision, which has produced the gross excesses, abuses of power, discrimination, and unfairness that characterize modern societies today. But arguing over the changes/remedies/solutions is putting the cart before the horse. First, we all need to agree on where we want to go. Then we can discuss the merits and limitations of the various ways to get there.
A statement generated from uncommonly clear thinking. Unfortunately, considering today's culture of self interest among the influential elite, such discussions can only occur in rooms of two or fewer occupants.
Excellent article. Both OWS and we investors need to continually ask ourselves the question, "But what if they win?" Do want to add a couple of points. Many OWS signs and discussions focus on "fair" – but this political campaign – of which OWS is but one part – ought be less about fairness or justice and more about wisdom – what is the wise course for this country and the global economy. I am biased – of the opinion that very high inequality of income and/or wealth is recipe for economic disaster or national collapse. And 6000 years of recorded history back up the idea that when people atop the economic pyramid get too far ahead of those in the lower half corruption and revolt soon rear their ugly heads. Where do we in the US today fit into this? I recommend the article "Equality and Efficiency" by Andrew Berg and Jonathan Ostry (Finance & Development, Sept. 2011, pp 12-15) for a rigorous and thorough refutation of Arthur Okun's 1975 thesis that equality is necessarily unproductive. Coming from the oil business, let me suggest that anyone inclined to think favorably of "trickle-down economics" take a look at Nigeria or Angola to see just how well it works in the real world – oil money goes in at the top, and stays there. Hard data from this country says the same thing – tax cuts at the top do not translate into jobs at the economic bottom. I do believe that the economic freedom we need includes the right to fail – but not a requirement that we operate with no safety net. With due respect for Milton Friedman, his thesis may be justice, but it is not wisdom. Private charity has not proved an effective substitute for the federal safety net in our mobile society. The public safety net is needed – not just to sustain a failed or injured worker until he/she can return to the work force, but to sustain the children and give them a chance for upward mobility. This is not justice, this is wisdom.
Nicely balanced article. However, nobody seems to be telling the OWSers that the people they despise are the people who took risks, provided jobs, and made money – not only for themselvres but also for their community and nation, US, UK, etc., creating wealth. It seems that as soon as you start "redistributing wealth" you hire an army of administrators, who help themselves to the national pot of gold, and in redistributing the wealth they also diminish the wealth. Why do they not think through the trade union mantra, and motto of the Amalgamated Engineering Union here in the UK, UNITY IS STRENGTH. That goes not only for people, but also money. A thousand people laid off with a hundred dollar payment each will soon squander their dollars, but pooled, that money would be $ 100,000 and possibly enough to buy the business! However, I am reminded of the story told by the socialist minister charged with nationalising the coal industry here in the late 1940s, all the socialist politicians thought that when the miners knew that the nation owned the mines they would work harder. They didn't, and I think production actually dropped. They seemed to think that the government had a bottomless pit of money, and despite the ravages of the last decade or more, the socialists just don't seem to comprehend that is not the case, the government's money comes from two sources, workers pockets and business profits. Teach that to the OWSers and we might all get somewhere out of the economic abyss.
Regards, John Brittain
If OWS needs concrete goals, I hope that we can adopt these:
1. Go back to the Clinton income tax rates for individuals and adopt Obama's surtax on the super wealthy. While it might not produce gigantic revenues for the federal government it will achieve a fairness lacking today after the Bush era of only thinking about the 1%.
2. Pass the Obama jobs bill even it if creates more deficits. We will never achieve a balanced budget and reduce the deficit as long as the economy is faltering. More jobs=more income=equals more tax revenues. And in addition, cut out the subsidies in the tax system, subsidies for big oil, agriculture, etc. And, going even further bring back the Investment Tax Credit of the John F. Kennedy. It provided for 10% credit for the cost of new plant and equipment to manufacture goods. New plant and machinery=more manufacturing jobs=more income=more tax revenues.
3. Get money out of politics (as much as is humanly possible). This requires a constitutional amendment to counter the Supreme Court's absurd decision (yes, absurd and I am a lawyer so I can say that) in the Citizens United case. Corporations are not people and should not have First Amendment rights entitling them to more than free speech. They have "free spend" rights which need to be eliminated. a possible alternative and short cut would be to simply abolish the corporate entity altogether as a form of doing business. Congress would enact a bill eliminating corporations altogether and substituting a new form of business entity entitled "NewCorps" As a condition of creating a "NewCorp" the new entity would have to include in its charter that no funds of the "NewCorp" could be spent on political advertising or political contributions of any kind. I know it sounds silly, but I believe its an easier route than trying to get a constitutional amendment. And, while we are at it we should eliminate the seniority system in Congress. Being reelected repeatedly brings one representative to much greater power by committee chairmanships which brings in more money for him to get reelected again. Why should one congressman have 10 times the power of another duly elected congressman. The "one man-one vote" principle is gone in our government. While you are at it, lets put a two term limit on serving in Congress and one term in the Senate. All these candidates scream a faithfulness to the constitution and how we are not keeping the faith with the founding fathers. The founding fathers never envisioned professional elected officials whose entire lives are pigging out at the public trough. They contemplated a successful individual serving one or two terms and returning to their "day" jobs. The seniority system, unlimited money in elections, professional politicians whose main focus is reelection and the legion of lobbyists with black bags full of money has all but destroyed our democracy.
4. The critics are correct that so many regulations are onerous for businesses. Many regulated areas need streamlined and some common sense should be injected into the regulation drafting and enforcement process. However, there are just as many areas where monied interests have emasculated regulations that are essential to health and safety as well as controlling the economic disease of excess speculation on Wall Street and by the banks. Glass-Seigel worked for 40 years to prevent a lot of abuse. The minute it was revoked Wall Street greed naturally took our nation down the road to financial ruin. We need to break up the banks so NONE of them are too big to fail, then speculation by an investment bank here or there can occur without destroying our economy. Instead of splitting up the banks in the 2008 crisis our government, full of Wall Street alumni, consolidated the banks. That was and still is the wrong direction. It may be true that "greed is good" but only if regulations prevent that greed from destroying our economy. No mortgage originator should be allowed to pass all the risk onto a federal agency or a mortgage pool. Mortgage originators, be they banks or otherwise, should have to keep at a minimum 40% of the mortgage risk. Yes, this would eliminate a lot of mortgage lending for individuals who shouldn't be getting a mortgage in the first place, but it would provide for stability in real estate pricing.
5. Cut defense spending. Of all the Republican candidates for President, Ron Paul has hit on the only goal that makes good sense. We don't need troops in roughly 150 countries around the globe. We don't need 54,000+ troops in Germany to protect Germany from the Soviet Union as we did when the Berlin blockade occurred after World War II. Nor do we need 10,000+ troops in Italy, 9,000+ in the UK. We don't need troops scattered from Hawaii throughout the Pacific to prevent Japan from attacking Hawaii. Nor do we need more than 35,000 troops in Japan and 5,500 civilians supporting those troops there. All in all, we have about 350,000 troops in foreign countries, and there are roughly 50,000 civilian personnel also stationed in foreign countries to support those troops. Its time we let Germany, Japan, Italy and a host of other countries defend themselves against largely nonexistent enemies. We just can't afford the bill for this now. And this is not to mention arms contracts for new weapons systems.
The OWS street movement is peaceful now, but when the vast majority of citizens believe their democratic institutions are corrupt and not serving their interest–when their personal economic distress reaches a boiling point, the peacefulness will turn to violence and outright rebellion. We are not all that far from it now. Republican politicians debate over abortion, the death penalty and executions, punitive immigration policy and of all the stupid things, evolution versus Divine Creation. Congress is deadlock with one goal, to trash the economy so a Republican can take power. This will not stand for much longer. If we don't act soon much of what is good in this country may be swept away with the rotten. But I am not optimistic that we can solve this mess.
But thank goodness there is OWS. Lets hope it grows and turns into political muscle where the 99% vote out all those who refuse to act to clean up and regulate Wall Street, break up the banks, take money out of elections and do the right thing to rebuild our infrastructure and bring down the unemployment in the process.
Interesting article and comments: Which speak to who reads this stuff….
I was a kid in the 60's (a real kid, single digits), and I was in Berkeley during some of the protests. All We Need is Love… yep.
Today, we have an economy built on the ideas conceived then. This is the world the OWS wants, and you can tell by who supports it and who disagrees. The opponents of the OWS are having their clock cleaned (Again!), and the supporters are looking for another Goose to slaughter to fuel their next big, highly leveraged venture.
Never, ever, judge a movement by mere aspirations and good intentions. I am sure I could name many dictators who had good intentions. (Why is it anyone who hates the slaughter of ordinary folk can be dissed???) Fueling a political movement with a handful of nitwits is likely to give the nation another bath of reality that none of the Victims deserve.
As for Google and Apple and the other, politically correct businesses, who cares? They will do well if the world becomes a fascist state… and they will do better if the culture and civilization they spawned in survives.
We are a cross road. Will we defy history and turn back to the known paths of prosperity; lining up with freedom and liberty: Or will we fail to learn from history, repeat history's mistakes, and go into the night hoping our own personal end is non-violent?
Judging by the comments, I would not bet on upbeat prognosis. I hope I am wrong….
Since the OWS movement has not yet defined their goals, they risk being taken over by almost anyone who promises to give them what they want. As a result any of the possibilities you mentioned, and probably a number of others are possible. Until their agenda is defined we have no way of predicting what will result, but as you mentioned self serving politicians always seem willing to offer a scheme that attracts some. It is this unrest that allowed Hitler, Stalin, Castro Khomeni, and hundreds of other horrible leaders to gain control, as well as a few like our own founding fathers. I agree with OWS that change is required, but not all change is good.
Noel – you're right… harking back to the 1960s doesn't go far enough. Yes, those were revolutionary times. The difference is you can respond to this article and I can respond to you on the same day, from the other side of the world!
The Information Revolution has more similarities with the Industrial Revolution than the 1960s. Back then there was a new technology – mass manufacturing. Back then we were inspired by hope of a new fairer society. Back then it was Liberté, Egalité and Fraternité and the American Constitution.
However, unfortunately both came out of violent revolution. Let us hope this revolution remains non-violent and succeeds in convincing those who desperately cling to materialism that it is unsustainable and ultimately makes them no happier.
What we are seeing is a revolution in consciousness: an inner revolution that is redefining how we measure happiness. Rather than a bigger car, house or better holiday we are re-evaluating ourselves, our family and our society.
The alternative is not worth considering. And for the record a United States of Europe is delusional.
This Is the Comprehensive List of Those Supporting Occupy Wall St.
Posted on November 1, 2011 at 9:35am by Mike Opelka Mike Opelka
“Show me your friends and I’ll tell you who you are.”
That line is one of the famous “Mom-ilies” often heard in homes all around the country. Perhaps mothers have drawn this wisdom from the Bible and Proverbs 13:20:
“He who walks with wise men will be wise, but the companion of fools will suffer harm.”
Either way, The Blaze has presented details on the people inside the OWS movement as well as those believed to be supporting it with money, material goods (sleeping bags, non-perishable foods, etc.), organizational skills, and even storage space. We have named names from the White House to the American Nazi Party, we have shown connections to several unions (like SEIU, UFT, and TWU) and pointed out the organizers like the Working Families Party and ACORN.
This morning we ask you to consider the recently posted Official list of Occupy Wall Street’s supporters, sponsors, and sympathizers put together by intrepid blogger Zombie.
“Local” supporters:
Communist Party USA
The American Nazi Party
Revolutionary Communist Party
Black Panthers
Nation of Islam’s Louis Farrakhan
CAIR
Some big names in the political world have also lent support to the cause:
President Barack Obama
Vice President Joe Biden
Nancy Pelosi
International Leaders and Governments:
Iran’s Supreme Leader, the Ayatollah Khamenei
Hugo Chavez
Revolutionary Guards of Iran
The Govt of North Korea
Communist Party of China
Hezbollah
“As each new controversial endorsement has appeared over the last month, OWS supporters have dismissed them one by one as ‘isolated examples’ that don’t reflect any overall trend toward extremism,” writes Zombie. “But when viewed in aggregate like this, it becomes much more difficult to dismiss any individual endorsement as an aberration; instead, an undeniable pattern emerges.”
Zombie has sourced the list with links back to evidence of participation or support of the Occupy Wall Street movement. It will be regularly updated.
The full list can be seen here.
2Pe 3:10 Will come but the day of Lord as a thief, in which the heavens with a rushing sound will pass away, elements and burning intensely will be dissolved, and earth and all in her works will be burned up.
It is the day in which the old order is to perish and the glorious new order is to be ushered in;
The heavens: A figurative term for the present religious institutions–ecclesiasticism. Only a change of dispensation, attended with great national destruction. Pass away: With a "rushing sound," as escaping steam that must obey the decisive action of the "fervent heat." To be supplanted by the new heavens and the new earth. And the elements — Component parts, of tyranny, ignorance and superstitio;
Shall melt: The fire will next affect the social and industrial organization–merchandise, capital and labor, society, etc. With fervent heat — The heat of public discussion, investigation, tumult, and strife.
The earth also: The social organization under both church and state influence. Organized society, including the financial and political powers; And the works: Pride, rank, aristocracy, royalty; Shall be burned up: Destroyed in the strife and friction caused by increasing knowledge, combined with selfishness; Fire: Fire is very properly a symbol of destruction, and is so used through the Scriptures.
And all will come to beneficial ends of equality for all.
Maybe there is a vqriety of things that could happen if OWS succeeds. However,I run into an article on October 24,2011 entitled Occupy Pennsylvania Avenue and had wondered with their almost anti corporate greed approach are they not trying to over turn the ruling in January 2010. That is when the corporations and unions were added to campaign financing or campaign advertising. While outside the Congresmans office sometime shortly there after I ran into three p[eople stating exactly that. They knew it was going to be an up hill fight to get it overturned but were also upset about politicians putting ,lets say my money intheir pockets whether they helping or not. I have run intothat several times,especially on the high dollar side there have been serious questions of money disappearing being embezzeled or otherwise,however back to this overturning that January 21,2010,in the case of Citizen United v. Federal Election Commission. As a result of the Court's decision,political advertisements paid for by corporations,nonprofits,and labor unions may explicitly support or oppose a particular candidate. The Supreme Court did,however,maintain the disclaimer and disclosure requirements in BCRA. Further,corporations,nonprofits,and labor unions continue to be banned from donating directly to political candidates. There have been several bills related to campaign expenditure requirements introduced in both the House and Senate since the Supreme Court's decision. However,the Constitutional protections of the First Amendment cannot be restricted through legislation. In my opinion,(opinion of a U.S. Senator)in order to make the necessary changes to the First Amendment that supporters of these bills intend,the only course is a constitutional amendment,which is a two-pronged initiative. First,it must be proposed by either a two-thirds majority of both the House and the Senate or by a two-thirds majority of the state legislatures requesting Congress to hold a constitutional convention. Second,the proposed amendment would require approval by three-fourths of the state legislatures or by three-fourths of the states via ratifying conventions. I do not believe a constitutional amendment in response to Citizens United v. Federal Election Commission is likely to be successful. That was one U.S. Senators opinion. This group may be headed there by winning small issues in court,etc. Will it be successful? I guess wait and see what happens.
I have been following the movement in Spain since the May 15th events began to unfold and have posted in Spanish with some English translations the reports by a Venezuelan economist turned anthropologist who contributes to our page… you will enjoy learning of the truly libertarian spirit that moves those who wish to save their own skin and the world's, the earth's, as well. There are various interesting aspects to look into… The most promising is the realization that a democratic system is not for REAL… (= in English and Spanish) when it is based on a political "party" system… For me this is at the heart of this rapidly developing revolution or "drastic evolution"… This is the freshest thing and most promising I have experienced since all that went on in the sixties… a change in basic values and a realization that we have become tools in the hands of those who promote a system that is unsustainable from many points of view. I am 72 and was there in DC with Martin Luther King when he spoke about his Dream… and also in '68 when we nearly "took" the Pentagon. How we govern ourselves must change… we will still want to enjoy the good things in life but without finding ourselves getting consumed ourselves in the process… with everything including us turned into a commodity… I think ultimately we are facing a vast religious phenomenon… we want to be able to BE, to ENJOY… and much of what we SLAVE for ultimately is not what we want or REALLY need. I think the INDIGNADOS know what they want and that all of us together can make the difference in terms of HOW WE GO ABOUT GETTING WHAT EVERYONE ACTUALLY WANTS AND NEEDS… PEACE AND LOVE and a GREAT THANKSGIVING TO ALL! :-)
Come on America… we need the leader to show some common family values – NOW. .
Here in Australian it seems that there are two major issues:
1. a tax system that needs overhaul. Corporations need to pay more tax,
2. refutation of the greed is good maxim. It is not good for society. Even the idiots who got extraordinarily rich lost it, and destroyed the lives of the common man.
You guys do not know how close you are to losing Pax Americana status.
This company caused the financial crisis, why are its executives not in jail.
AIG the subsidiary of Zurich the insurer, ultimate Parent ZFS – Zurich Financial Services should have been broken up when it failed. The US Government instead of funding the insolvent insurer, effectively bailing out the fraudsters. Should have broken it up into manageable units, and never have allowed it to be restated after it went bust.
This and similar examples of corruption is why wall street protesters – the general public are so intent on rooting out the corruption, it is not about capitalism, it is about fraud corruption and money in black plastic bags being paid to career politicians by corporate giants for favours.
Gordan Finch
I thought your readers would like this,
Can you imagine working for a company that only has a little more than 635 employees, but, has the following employee statistics..
29 have been accused of spouse abuse.
7 have been arrested for fraud.
9 have been accused of writing bad cheques.
17 have directly or indirectly bankrupted at least 2 businesses.
3 have done time for assault.
71 cannot get a credit card due to bad credit.
14 have been arrested on drug-related charges.
8 have been arrested for shoplifting.
21 are currently defendants in lawsuits.
84 have been arrested for drink driving in the last year.
And collectively, this year alone, they have cost the British tax
payer
£92,993,748 in
expenses!!!
Which organisation is this?
It's the 635 members of the House of Commons.
Well, what would you expect from an organization called the "House of Commons"? Perhaps Great Britain should aspire to be governed by an organization called the "House of Exceptionals". Really, your country should raise the bar, then perhaps the U.S. will follow.
Thank the party of the KKK, the Aerian Nation and the slave traders, "The Republican Party."
They would cut their mothers throught if there is a doller involved.
Now, they are up to destroying the President of this country and will drive it into the ground
to do it.
There is not a patroit, a countryman, or a true American in the bunch, so look for all the people
in the streets to stay but, be careful when they start showing up with gun's like the Republicans.
Another civel war might be in the makeing, but who do you thank will win? who fight's all the wars
and have all the experance and who sets on their asses trying to beat some one else out of
something?
Interesting article.
However the author FAILS to understand that not all REVOLUTIONS are PERFECT (sorry!).
This protest doesn't need a "Leader" or a very detailed/specific and DEFINED list of objectives & demands.
The author should review several of the YouTube videos of pulitzer prize-winning journalst Chris Hedges. He truly UNDERSTANDS how a REVOLUTION occurs and WHY.
He also explains why it makes better sense to leave out some of the formalities that this author is suggesting. He "Get's it"!
I encourage (and challenge) the author of this article (and others) to LQQK at the various videos of Chris Hedges regarding OWS… Just do it!
A real shame that the 99%'ers are being 100% manipulated. An earlier posting showed the sponsors of the effort; if the 99'ers believe that the illness that has gripped this country is the fault of this country's underlying principles, then I believe there is little hope for us as a people and nation.
Hard work, dedication to ones' goals for family and success come from each individuals' effort, not from blaming others and conspiring to take from the hard work of the productive. You will get no argument from me that changes need to take place, but 99%'ers are targeting the wrong groups.
What made this country great is the unwavering belief that anyone can rise to any level with hard work. It takes time and sacrifice. I started in life with nothing, gave 4 years in the military to go the college, worked for many years to have a good life. Now to hear that someone not willing to put the time and effort in wants part of what I worked for as "fairness"….please.
If you believe a socialistic view of the world is better, I would invite you to live overseas, not visit on vacation, to see how this really operates.
The thought of increasing taxes for the rich is nothing more than an impulse thought many just can't shake. The rich put billions into new ventures for [average] people who want to take a risk in this thing called, "capitalism". In addition, the rich would find more places to hide their liquid assets (money) from being taxed.
All overtaxing the rich will do is push them further into hiding.
These OWS & other groups will fall like the rest, raising no more than just a social consciousness of the problems within a few companies. By the way, the issues OWS is protesting are present in just a few companies. Why screw up the whole system for a few with little morals?
BTW, before I forget, "Welcome to a world of free enterprise based on capitalism". Because of this system, I will become one of the few that some of you would like to over tax on my hard work and contribution to the development of our commerce, and thus increasing jobs for you whiners.
Take my advice. Support the current system with prosecution and seizure of assets for only those who's intent is committing fraud for their own fiscal benefit.
@Tom – Careful… your IGNORANCE is showing.
Hard work and dedication are not enough anymore. There are MANY serious issues regarding SYSTEMIC corruption and fraud in our Government, Corporations and the Financial Sector especially. Our country CAN'T continue on this current path.
Our YOUTH are are protesting this because they are smart enough to see that the future is being destroyed by the financial elite and politically connected. These abuses continue unabated and with impunity.
WHY can't you see this when millions of others do? Especially, world-wide.
Although I don't agree with some of the demands that some of these people are making, I also realize that most of these demands (i.e. free medical care & free college education) won't be granted to them anyway (i.e. you are fretting over what amounts to…NOTHING).
No REVOLUTION is PERFECT (sorry!) and this one is GROWING.
In closing… NOT ONCE did I read anything from you complaining about Wall Street Fraud, Excessive Taxation, Government Corruption, Corporate Corruption, Unending Wars or the ruined economy. This is PROOF that you have lost sight of the Big Picture that these protestors do see. Aren't you a little embarrassed by that? Or, are you one of the elite that STOLE from the working people in this country?
PS: FYI – Most of the protestors are employed. Your focus should be on the people that stole from and defrauded our country… Not on the people that are complaining about it and want it stopped.
Stop allowing youself to be manipulated and misinformed by Mainstream Media – those people represent Wall Street.
It seems to me that many people here have misunderstood what has been happening in the Global financial world { or maybe it is me that has misunderstood!!} but put very simply.. the majority of financial institutions have been criminally run for quite some time.. these institutions take massively disproportionate risks with money that is not theirs { but because of ridiculously tame banking regulations.. they can legally do this} how can it conceivably be right for example for a bank with say $100,Billion of depositors money be only required under federal banking laws to hold on deposit less than 10% of "real money" to cover withdrawal demand… it's an incredible situation…and a guilt edged invitation for the fox to come into the chicken coup… and that is exactly what happened.. the unscrupulous and the criminals… yes criminal.. loaded up the subprime market with mortgages and loans which can only be described as a joke… and then divided, packaged them and sold them as "performing".. no clearer example of plain simple felony fraud… whose money was it… it was YOURS.. and mine… the innocence who blindly trusted these institutions to take care of our money and give it back with a little bit extra… then what happens.. the government comes and bails them out… great you say… but whose money are the government using to do this?… yep.. you guessed it… yours and mine through taxation.. so now we all got F******d twice… but what about the people who run these institutions…obvious of course.. they went to jail for 30 years??? … er… no.. they all got multimillion dollar bonuses for commiting crime… the institutions … bakrupted and asset stripped..??? no.. they got a slap on the wrist and back to crime as usual… isolated incidents I hear you say…. not on your life.. the stock market was brilliant inception { once upon a time} an opportunity for new and burgeoning enterprises to raise capital for expansion, development growth and in turn creating jobs… but now… it's a den of eniquity { apologies to the few decent people on the street} thieves looters and pillagers blatantly manipulating markets..stocks.. commodities.. forex etc These people are now so powerful they can manipulate any market and syphon off billions… and all of it absolutely illegal… so what about the SEC.. "the cops" who are supposed to police all of this… the very best that they can up with is to prosecute a hedge fund manager for insider trading…IT'S ALL INSIDER TRADING… but the political lobbyists.. give the green light and it is "fill you boots, boys" goverment will do nothing.. after all ..it's capitalism at it's finest? …Wrong.. it is pure and simple organised crime { I even hear that the original mafia are players now as it is easier money than the traditional drugs, prostitution and gambling}…. until goverment actually starts to enforce it's own laws and prosecuting these vultures.. certain people and institutions will most certainly drive the world economy into the abyss…grow some gonads and start handing down 50 year sentences and start putting some decency and integrity back into wall street before it's too late { I personally think it is already too late}.. don't forget.. for every winner.. there has to be a loser..a nd I am in total agreement with OWS.. even if some of them don't know exactly what is wrong… the point is they know SOMETHING is wrong… don't just punish the vermin in Wall St.. punish the politicians who allow them to operate… vote them out
The fundamental problem from the beginning was that the OWS has been and still is, an amorphous collection of individuals, some of whom do have a legitimate agenda. But as the movement has advanced, the idea of protesting and joining a crowd has resulted in hundreds of people whose ideas are not in sync with the majority. These are the trouble makers who often advocate violence in favor of reason. What the OWS needs desperately is a charismatic leader who will galvanize the protestors into a unified group whose goals and ideals will be clearly defined. Only then will the majority of our Citizens become actively involved and realize that "in union there is strength" (Aesop)
The USA, the UK, the EU—all are broke, busted, bankrupt. Their very institutions are corrupt beyond description. Their people really don't have their heads screwed on properly. Look about. Look and see reality. The West is in a state of decline. It may or may not be retrievable. Given this, I can see the financial centres of the world moving to where real wealth is created. Hong Kong, Singapore, Bombay. The West will be left behind to stew in its own juices. Economic supremacy is returning to Asia, from whence it came. In a sense, this was foretold long ago. Napoleon III, Brooks Adams, Karl Schwarzenberg. Extend their line of thought and we will see for ourselves.
This story could predict capitalism of/by/and for the people. Greedy, selfish, wealthy Americans have stacked the deck against the middle class by buying their leaders and representatives. Under false pretenses in 2010 and many prior elections, duped voters gave congress and certain states enough republicans to push their long term project. They began accelerated social, political and economic engineering including intense voter suppression, union negotiations busting, greater redistribution of middle class wages and benefits to the wealthy, diminished women's healthcare options, minimized initial soldier protection in Iraq and veterans benefits–and NO NEW JOBS, the pressing need that's been ignored. In fact, radicals continued the private corporate job abolition by reducing teacher, police and fire jobs in the public sector.
Occupy Wall Street and many other demonstrators across the nation and worldwide are serving notice that these moves are not going to continue without severe penalties, like removing funds from ignorant big banks. That's the new capitalism. Reducing the oppression, corruption and dominance of reactionary ideological interests, money managers and other fat cats is the new capitalism.
Viva la revolucion–don't tread on me–power to the people–a little revolution is necessary once in a while.
Investing in any stock is supporting the big corporation – communism business. Small private business is real capitalism but under current regulations can't survive. Whole stock businesses are manipulated, unfair and cause the economic problem. Look who is selling food now and what quality, quantity. I wish I could have a fresh milk at the door step every day again, fresh fish at the market / not farmed in China, we trow far too much food becouse is sold in big quantity and is spoiled. We don't need geneticly modified food, we need small farmers to have again the opportunity to compete with imported food purchased by big corporations in unfair practice and unfair prices with out duty /taxes paid….. Sell back corporate land to small farmers and watch your and your family health improve.
yes ,please moderate my spelling mistakes
Keith I believe your beliefs about OWS are blindly naive. The level of ignorance of the typical member of the OWS groups is astounding. That our government has caused our problems is certainly true,
but in a demcractic republic we always have exactly the government we deserve, because we put it there. Scoundrels like the corrupt congressman Barry Frank and the former senator Dodd have been or were reelected by an unbelievably igrnorant electorate. We have the worst and most dangerous president in our history because your 21 to 35 year olds put hiim there.. Part of the blame for the growing failure of our nation is a fundamentally flawed education system from K through grad schools which no longer indoctrinates in patriotism and civic responsibility and kowtows to the absurdity of social diversity. There is no cohesion in diversity. Diviersity always divides and weakens. And finally, for this missive, OWS are supported by an almost incredibly left wing biased and naive major media which for decades has illserved the American people by its abject failure at any sense of objectivity.
While your article is excellent, it fails to define the purpose and goals of OWS. The replies are varied in their interpretation as well: there's everything from socialism to nostalgia over old fashioned goals. In other words, OWS is saying that "something is wrong with our politics and economics, and we want to fix it, although we don't know how." It's easier to endorse a philosophy if you know what it is!
Keith
Nice article.
To the OWS that complain about disparity are missing the point. One of my mentor taught me “don’t tell me the news make the news”. Many of the OWS that I have seen have the latest toys from
Apple. IPhones, Ipad, IMacs and more. Jobs saw a problem and solved it. He has been rewarded for it. Because you don’t like how much money he made, should he have to give it to you? Absolutely not. Make your statement, now stop camping and solve a problem. Create the compensation that you deserve by solving problems. Jobs did and you enjoy his efforts. Taking someone else's profits is not making the pie bigger. Solve a problem that makes the pie bigger so all may prosper. Please remember this works in a capitalistic system and not a socialist.
Where do these people come from? Who finances them? Like is there a major organization with financial backing influencing the group? I have seen their manifest and goals. It is pretty close to big time socialism or even communism in a lot of its features.
Hard Work? What do you think people have been doing all these years? Slumming?
The bad joke of our society is we are programmed to work for someone else by our school system. Big corporations run everything here. Small business is stifled. Look to your government agencies as to why. That is why I look for who is behind the entire movement. When you get out of college(used to be high school) good jobs are promised for all . . . That was the theory back in the 70s. That was the carrot given to go to school and land a good job.
Another carrot was the pensions awaiting anyone who works his career and retires. Whether it was Social Security or private pensions. Guess what! The established powers that be decided that 401Ks were a better solution and cheaper. So much for that idea. Everyone involved in the financial joke of the last 3 or 4 years knows the pension funds are gone. Social Security is on a basis of having a great number of IOUs from the US Government instead of money.
Then the game rules have changed haven't they . . .
I worked my entire life so that the medical profession can break me financially somewhere in my old age, then put me on welfare and Medicaid. They are willing to pay a meager pension. Then put you in a nursing home on Medicaid after they steal everything you ever worked for. The nursing home gets triple what it costs in pension to me.
Doesn't sound like the game rules are set up for me to work hard and earn something over my lifetime.
That same medical profession is suppressing any cures that threaten their cash cows. I refer to cancer, diabetes, heart disease, and more. Thanks to the Internet some of their little financial schemes are coming to light.
I suggest that the internet is their next target.
Violence only begets more violence. Unfortunately, we are gullible, misinformed and uninformed. Occupy Wall St. is an extension of the '60s revolution which was an extension of the 1917 Bolshevik Revolution which was an extension of the French Revolution, to The Fall. Since the beginning of time man has rebelled against his Creator and since the beginning of time man has fallen back on himself only to be left with the same haunting question over and over again: Why can't I be free? The answer lies in man's pride. In the original edition of Saul Alinsky's infamous book, "Rules for Radicals", he makes an astonishing statement:
"Lest we forget at least an over-the shoulder acknowledgment to the very first radical: from all our legends, mythology, and history (and who is to know where mythology leaves off and history begins – or which is which), the first radical known to man who rebelled against the establishment and did it so effectively that he at least won his own kingdom – Lucifer."
When evil is perceived as good and when good is perceived as evil, guess who is in control of you?