Economist: The Financial System Is Broken And Corrupt. Big Banks Are Crime Gangs. Obama Is Backing De-Criminalization Of Fraud, And Doesn’t Want To Create Jobs, But Instead Wants To Reduce Wages By 30%

The Financial System Is Fundamentally Broken and Corrupt

Prominent economist Michael Hudson explains that the financial system is so fundamentally broken and corrupt that the message of the Occupy Wall Street protesters can’t be reduced down to a handful of “technocratic fixes”.

Hudson also said:

  • Bank of America, Wells Fargo and Citibank are crime gangs (Background)
  • Obama is backing de-criminalization of fraud (Background)
  • Obama doesn’t want to create jobs; instead, he wants to reduce wages by 30% (Background)
  • Geithner is just a bank lobbyist, and shouldn’t be in charge of treasury (Background here and here)

Note: Michael Hudson is a highly-regarded economist. He is a Distinguished Research Professor at the University of Missouri, Kansas City, who has advised the U.S., Canadian, Mexican and Latvian governments as well as the United Nations Institute for Training and Research. He is a former Wall Street economist at Chase Manhattan Bank who also helped establish the world’s first sovereign debt fund.

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  • todd

    CONGRESS PASS HR 1489 (“RETURN TO PRUDENT BANKING ACT” ). THIS REINSTATES MANY PROVISIONS OF THE GLASS-STEAGALL ACT.–Steagall_Act — Wiki entry summary: The repeal of provisions of the Glass–Steagall Act of 1933 by the Gramm–Leach–Bliley Act in 1999 effectively removed the separation that previously existed between investment banking which issued securities and commercial banks which accepted deposits. The deregulation also removed conflict of interest prohibitions between investment bankers serving as officers of commercial banks. Most economists believe this repeal directly contributed to the severity of the Financial crisis of 2007–2011 by allowing Wall Street investment banking firms to gamble with their depositors’ money that was held in commercial banks owned or created by the investment firms. Here’s detail on repeal in 1999 and how it happened:–Steagall_Act#Repeal .

    USE CONGRESSIONAL AUTHORITY AND OVERSIGHT TO ENSURE APPROPRIATE FEDERAL AGENCIES FULLY INVESTIGATE AND PROSECUTE THE WALL STREET CRIMINALS who clearly broke the law and helped cause the 2008 financial crisis in the following notable cases: (insert list of the most clear cut criminal actions). There is a pretty broad consensus that there is a clear group of people who got away with millions / billions illegally and haven’t been brought to justice. Boy would this be long overdue and cathartic for millions of Americans. It would also be a shot across the bow for the financial industry. If you watch the solidly researched and awared winning documentary film “Inside Job” that was narrated by Matt Damon (pretty brave Matt!) and do other research, it wouldn’t take long to develop the list.

    CONGRESS ENACT LEGISLATION TO PROTECT OUR DEMOCRACY BY REVERSING THE EFFECTS OF THE CITIZENS UNITED SUPREME COURT DECISION which essentially said corporations can spend as much as they want on elections. The result is that corporations can pretty much buy elections. Corporations should be highly limited in ability to contribute to political campaigns no matter what the election and no matter what the form of media. This legislation should also RE-ESTABLISH THE PUBLIC AIRWAVES IN THE U.S. SO THAT POLITICAL CANDIDATES ARE GIVEN EQUAL TIME FOR FREE AT REASONABLE INTERVALS IN DAILY PROGRAMMING DURING CAMPAIGN SEASON. The same should extend to other media.

    CONGRESS PASS THE BUFFETT RULE ON FAIR TAXATION SO THE RICH AND CORPORATIONS PAY THEIR FAIR SHARE & CLOSE CORPORATE TAX LOOP HOLES AND ENACT A PROHIBITION ON HIDING FUNDS OFF SHORE. No more GE paying zero or negative taxes. Pass the Buffet Rule on fair taxation so the rich pay their fair share. (If we have a really had a good negotiating position and have the place surrounded, we could actually dial up taxes on millionaires, billionaires and corporations even higher…back to what they once were in the 50’s and 60’s.

    CONGRESS COMPLETELY REVAMP THE SECURITIES AND EXCHANGE COMMISSION and staff it at all levels with proven professionals who get the job done protecting the integrity of the marketplace so citizens and investors are both protected. This agency needs a large staff and needs to be well-funded. It’s currently has a joke of a budget and is run by Wall St. insiders who often leave for high ticket cushy jobs with the corporations they were just regulating. Hmmm.


    CONGRESS PASSING “Revolving Door Legislation” LEGISLATION ELIMINATING THE ABILITY OF FORMER GOVERNMENT REGULATORS GOING TO WORK FOR CORPORATIONS THAT THEY ONCE REGULATED. So, you don’t get to work at the FDA for five years playing softball with Pfizer and then go to work for Pfizer making $195,000 a year. While they’re at it, Congress should pass specific and effective laws to enforce strict judicial standards of conduct in matters concerning conflicts of interest. So long as judges are culled from the ranks of corporate attorneys the 1% will retain control.

    ELIMINATE “PERSONHOOD” LEGAL STATUS FOR CORPORATIONS. The film “The Corporation” has a great section on how corporations won “personhood status”. . Fast-forward to 2:20. It’ll blow your mind. The 14th amendment was supposed to give equal rights to African Americans. It said you “can’t deprive a person of life, liberty or property without due process of law”. Corporation lawyers wanted corporations to have more power so they basically said “corporations are people.” Amazingly, between 1890 and 1910 there were 307 cases brought before the court under the 14th amendment. 288 of these brought by corporations and only 19 by African Americans. 600,000 people were killed to get rights for people and then judges applied those rights to capital and property while stripping them from people. It’s time to set this straight.

    • Invisible Patriot

      Listen…you have made more sense than anyone I’ve seen on 100 sites. What ‘Occupy Sites’ are you a fan of? I want to talk with you ! Get this thing organized…it’s abysmal !

  • Concrete man

    Good comments from above, there are indeed demands, and they are quite concrete, yet broad.
    I liked Hudson’s analysis too, very good at putting it all in perspective. Much better than Webster Tarpley and Michel Chussodovsky who on Press TV attacked the protestors (esp Tarpley) for not having any demands. This is sheer poppycock.
    There does need to be another layer to this analysis, and that is: Get the Talmudic Money Junkies out of running our economy:

  • Bev

    You did not include an Important Reform:


    Representative Vows to OccupyCONGRESS

    The Occupy movement coincides fortuitously with bold financial legislation introduced earlier this year. HR 2990, the National Emergency Employment Defense (NEED) Act, proposes nationalizing the US central bank, the Federal Reserve. What this means for the dollar is that it will be un-privatized, changing from a debt-based currency to a debt-free one overnight. The monetary system is then geared to produce public wealth rather than bankster wealth.

    To anyone concerned about the national debt, austerity cuts, unemployment, or the extreme concentration of wealth and power among the elite, the NEED Act is what you have been waiting (and protesting) for.

    Don’t confuse this proposal with the specious calls to replace “fiat” money with gold (commodity) currency. The problem is not fiat but rather debt-based currency, controlled by and for banksters. The NEED Act does “end the Fed” as we know it, but achieves this the right way: with sovereign, debt-free Treasury notes. Gold currency, on the other hand, is an elitist scheme which would devastate the already reeling middle class.

    Under HR 2990, the dollar is to be issued by US Treasury as a public asset and spent into circulation for the public good. This will allow government to invest in large-scale projects without borrowing or adding to the national debt. Millions of unemployed can be put back to work rebuilding and expanding America’s infrastructure. Debt-free money could also clear the way for single payer health care – a reform which would save lives and money while boosting the economy.

    The author of HR 2990, Dennis Kucinich, has pledged his support for the Occupy movement and vows to OccupyCONGRESS:

    Video at link firedoglake


    Support all Politicians who Support Dennis Kucinich’s the NEED Act, HR 2990 (formerly 6550)


    Everyone is up in arms against Wall Street, bankers and corporations. Well guess who finances the campaigns of EVERY single candidate EXCEPT RON PAUL.

    Ron Paul’s donations come from individuals, from We The People. In dribs and drabs. Whatever we can afford to give him. Our troops donate more to his campaign than to ALL of the other Republican candidates COMBINED! And our troops donate more to Ron Paul’s campaign than they do to the Commander In Chief.

    It would be great if candidates wore patches for their corporate sponsors like they do in NASCAR. The corporations know their candidates will represent their interests. The media wants the advertising revenue from those corporations, so they try to hide Ron Paul and distort his positions to falsely label his positions as “fringe”. Ron Paul’s patch would be the Constitution.

    You want a grassroots candidate who represents and is supported by We The People? You found him.

    Ron Paul for President 2012

    • Bev

      I believe the problem with Paul is that he would still continue with a debt based currency which is what we have now that is wrecking us. Even if backed by gold it would still be debt based money. Still good for the banks and bad for everyone else.

      And, he would get rich off this gold heavy portfolio from his own policies that help him and not everyone.

      • farang

        You are misinformed. Ron Paul is a life-long opponent of the debt-based fiat currency and the Fed.

        He advocates *returning* to the constitutionally-mandated gold (and silver) backed debt-free currency. In other words, “Gold and Silver Certificates” that look just like your fiat “reserve note”, only backed by real, physical gold and silver, and the Middle Class worker can redeem it into gold or silver if they so wish…so no, it is not “Elitist”…again, you are sadly misinformed.

        Just to be clear. I am not a Ron Paul supporter, but your misinformation leaves me scratching my head: where did you get such a wrong-headed opinion of Paul’s desired reforms?

  • There are some 400 intities who are the wealthiest in the USA.
    My question is: “where and how did they make this money?”

  • Hey There Washingtonsblog,
    Thanks for that, NCO Financial Collection Practices
    Nice One!

  • Hey Washingtonsblog,
    Neat Post, The stock market plays a crucial role in the financial system. It is considered as one of the best ways to increase their funds. But before you make any investment into the stock market, you should know how to get started. It may turn out to be a profitable affair as long as you know the tricks of the trade. To start with, you must have an account in your preferred brokerage.
    BTW great blogpost

  • farang

    Anyone thinking that a gold and silver-backed currency is “Elitist” and “still backed by debt” can exchange their silver JFK half dollars with me for face value (50 cents), I will happily accept them. Thanks in advance( I’ll happily pocket the $13 in profit per coin)…in other words, you must be too young to remember what happened to JFK when he issued silver currency, i.e., real money. Constitutional money.

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