Saturday, October 17, 2009

Bankers’ dominance of Washington


"Smart investors have certainly had plenty of opportunity to make money lately. Gold is up twenty percent. Oil has doubled. The Dow roars through 10,000. But one investment has far, far, outperformed all others in epic returns: politics.

Wall Street balance sheets make this very clear. Last year, according to the Center for Responsive Politics, major banks and other financial institutions in receipt of $295 billion in TARP money pumped $114 million into Washington in lobbying and campaign contributions. As a stand-alone figure, $114 million sounds like a lot. Set against the torrent of cash flowing in the opposite direction, it is minimal. At 258,449 percent it has been called “the single best investment in history.” Our elected representatives are giving it away.

No one should be surprised at the bankers’ dominance of Washington. They even boast about it. Hailing a further emasculation of the powers of the proposed Consumer Finance Protection Agency, the American Bankers’ Association recently issued a press release commending lawmakers for removing “the unworkable requirement that communications with consumers be ‘reasonable.....’”"

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The teabaggers got it wrong. Kid Obama's no red--just another corporate liberal, bringin' home the bacon for Investors, Inc. Crude and gold--the dee-eep pocket's table--have been roaring in nearly Reagan-era style. A 20% move in gold or crude oil on the commodity market may sound meaningless to Ma and Pa McTeabag. In reality that means massive profits, in the range of 200% to 300% (a Shekelsmeister's 100 grand becomes 300 grand in a matter of weeks) to those who got in at the right time (go count the clicks yourself when taking lunch at boilerroom hell)--for doing nothing, except having the shekels to pay a broker at the precious metals or energy casino. That's the reality of commodities in finance cap: No Todestrieb or Dasein chants needed.

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