- This topic is empty.
-
Posts
-
In his Communist Manifesto, published in 1848, Karl Marx proposed 10 measures to be implemented after the proletariat takes power, with the aim of centralizing all instruments of production in the hands of the state. Proposal Number Five was to bring about the “centralization of credit in the banks of the state, by means of a national bank with state capital and an exclusive monopoly.” Sound familure? Just today the US Gov’t annouced they will put capital for stock in some “Not in Trouble” banks just to be sure they won’t get into the same financial dire straights like WAMU,Downey Savings, IndyMac have found themselves in. This “centralization” of the American Financial system, which according to some; is in the best interest of the US People. Could very well be one of the single most event which cost Americans one of their most desired freedoms. The one of Financial security.
One fact we do know about the US Gov’t is that its agencies, especially; the treasury and IRS are hand in hand when it comes to sharing fiancial information. One of the elements which allowed so many processors of online gambling to remain secluded and hidden from the feds wandering eyes is the inability of private banks to share information on processes. Where as one bank may have found a link to offshore precessing, another may not have. This is why some CC and debit cards would work for one casino from a given bank, but then not work from another banks debit card. There was no real centralized, corroborating information.
Well, in steps the Federal Government to keep everyone on the same page! Now the element of stealth and obscurity once used by the processors to handle offshore gambling wont be as effective. The long arm of Uncle Sam will be sure to keep all Federal owned and backed financial systems in “the loop” in regards to routing and handling of questionable transactions. No more translucents and and ill-informed to the advantage of the online gambling world. This could be one of many of our “Freedoms” which maybe in severe jeopardy with the Centraliztion of the Financial System. The mission of any Govt is to maintain social control and conformity. What better way then to control the Republics financial resources. By george I think they got it, and kiss our Freedoms goodbye along with it!
I couldn’t agree more. Very worriesome. I had similar thoughts when seeing the news today :Pisser:
hmm, i dont know….maybe with Obama it all changes, the measure of the gov purchasing equity in banks is only temporary in order to restore economic certainty….(I could be wrong)
I guess a lot also depends on Barney Frank’s efforts too.
I thought the government was only going to buy stock in some of the banks. I’m not sure if simply buying stock will lead to them having more control over the banks or not.
This is leaning towards Politics so I am moving it to that section.
My two cents, the Government is probably going to gain shares in the banks as a form of collateral for the loans/hand outs they are giving. This seems appropriate. They will not be assuming a majority stake and there are millions of stock holders that effectively prevent them assuming full control of anything.
I think the current administration is satisfied with lining its pockets through the usual methods rather then assume control of real entities as this entails real work to manage.
Real work is not high on their list of favorite things to do, so I think we are safe.
I also think you are jumping the gun. The Gov will buy non-voting senior preferred shares , as well as common stock, but will not have any say-so on how the bank is being run, except for executive compensation. And in 5 years the banks will be able to repurchase their shares.
the stock taken by the US/UK governments are preferred shares that come without voting rights. In the US, taking the money puts limits on raising dividend rates and limits executive pay until the governments shares are sold back to the bank.
This conspiracy theory is silly for a number of reasons:
1. Banks, Brokers, Exchanges, Insurance and Commodity traders are already regulated, their representatives are licensed and regulators have a variety of rights to audit certain aspects of the business already.
2. The government already has lots ablility to look at banking/financial information via the patriot Act. In short It’s Already Happening
3. Joining regulatory agencies in the US into a sort of Super Regulator, is likely inevitable and would happen with or without the government buying into the banks.This particular method of bailing out banks was just considered the fastest and least expensive way. It was initially rejected by the administration because they’d rather use the $750 billion to buy worthless securitys to recapitalize the banks, than buying equity and let the banks deal with their own “assets”, because they can’t bear the idea that something so socialist could happen. Better than paying gold for garbage in my mind
