A People’s History of Stock Market Crashes 1946-2016: The View from Below

First four sections: Abstract. Introductions. Inspiration. Operationalization, and first two chapters of history here today. Next three sections to follow next week.

Timeline of market incidents from 1928 to 2016

It is difficult to “get ahead,” as in “accumulate assets,” in today’s radically uncertain investment markets. Nevertheless, it is received opinion in the US that if one “plays by the rules” one can “succeed.” This kind of success is defined narrowly as being able to save up enough money to buy a home, raise children, send them to college, and then retire without being a “burden on society.” These rules, although strict,  included legal protections for workers and consumers. More people prospered under these regulatory regimes.

Now, the regulatory regimes have been attenuated, weakened, maligned, and captured. As a result, corporations have been allowed to legally plunder the people that they are meant to serve. Their avarice knows no bounds. These financial actors are cannibalizing their hosts, we the people and the planet we depend upon for life, without even a thank you. In the corporate jubilation that followed every deregulation and privatization, our savings and home equity were plundered without apology or punishment of the perpetrators. I aim to show the levers and gears of these financial meltdowns, their causes, the failures that follow, and the effects of those failures on the typical nuclear family. I intend to demonstrate that a paradigm shift is occurring right now about how the USA might right its financial ship and get back in touch with its inhabitants. Young people are saying we have to figure out how to reward ourselves in ways that take into consideration equity, equality and fundamental fairness. We have to figure out how to invest in ways that create happy communities and happy families. How can investors protect their assets in a world gone mad?

Table of Contents

1)     Abstract 3

2)     Introduction. 5

3)     Inspiration. 6

5)     The WWII Postwar Period 1946-1960. 7

  1. a) How war profiteering led to the Marshall Plan. 7
  2. b) Erosion of Labor Law @Taft-Harley & Demobilization of female workforce after WWII. 8
  3. c) Remobilization of armament industry (Red Scare) 8
  4. d) The Bracero Program.. 9
  5. e) Steel Industry Strikes. 9

6)     The Last Decade of Dominance 1960-1969. 10

  1. a) The Pill 10
  2. b) The Stock Market seeks growth opportunities – Equity Funding. 11
  3. c) Studebaker Pension Fund failure. 11
  4. d) The conquest of cool 14

7)     The Seventies Changed Everything 1970-1979. 17

  1. a) The fiscalization of national product 17
  2. b) Oil embargo. 18
  3. c) Wage and price controls. 19
  4. d) Interest rate climb. 19
  5. e) War on Inflation. 19

8)     The Eighties – Business is Cool 19

  1. a) Deregulation and privatization. 19
  2. b) The fiscalization of national product 20
  3. c) The Savings and Loan crisis. 20
  4. d) Early 1980s recession. 22
  5. e) Black Monday 1987. 23

9)     The Nineties. 24

  1. a) Early 1990s recession. 24

10)        The 2000s. 25

  1. a) Early 2000s recession – dot com bust 25
  2. b) The collapse of Enron 2001-2002. 26
  3. c) WorldCom accounting scandal 27
  4. d) Subprime mortgage crisis. 27
  5. e) Real estate market cratered, stock market crashed AGAIN.. 28
  6. f) The Housing Bust, the Repo scams, and Middle class hollowing out 29

11)        The – “20teens” – A decade of crises in only 6 years. 30

  1. a) Irish and Icelandic banking crises. 30
  2. b) Student debt crisis. 31
  3. c) 2014 Russian financial crisis. 31
  4. d) 2015 Chinese Stock Market Crash. 31

12)        Increasing inequality without fundamental fairness brings new dynamics. 31

  1. a) Arab Spring & Libya & Occupy. 32
  2. b) The rise of Bernie Sanders and the return of class analysis. 32

13)        Conclusion. 32

1)      Abstract

It is difficult to “get ahead,” meaning “accumulate assets.” However, it is received opinion in the US that if one “plays by the rules” one can “succeed.” This kind of success is defined narrowly as being able to save up enough money to buy a home, raise children, send them to college, and then retire without being a “burden on society.” These rules included legal protections for workers and consumers. A broader range of society prospered under these regulatory regimes.

Now, the regulatory regimes have been attenuated, weakened, maligned, and captured. As a result, corporations have been allowed to legally plunder the people that they are meant to serve. Their avarice knows no bounds. These financial actors are cannibalizing their hosts, we the people and the planet we depend upon for life, without even a thank you. In the corporate jubilation that followed every deregulation and privatization, our savings and home equity were plundered without apology or punishment of the perpetrators. I aim to show the levers and gears of these financial meltdowns, their causes, the failures that follow, and the effects of those failures on the typical nuclear family. I intend to demonstrate that a paradigm shift is occurring right now about how the USA might right its financial ship and get back in touch with its inhabitants. Young people are saying we have to figure out how to reward ourselves in ways that take into consideration equity, equality and fundamental fairness. We have to figure out how to invest in ways that create happy communities and happy families. How can investors protect their assets in a world gone mad?

2)      Introduction

In 2015, Japan’s sovereign debt offerings went into “negative” territory. This means that Japan is offering its bonds on the market and expecting investors to pay for the privilege of holding its debt rather than paying interest.

Japan can expect to sell its debt instruments, even with that premium cost to the holder, because sovereign debt of big rich nations like Japan and the USA is considered a safe and stable place to park investor funds when other markets are deemed too risky for investment. In other words, people do not want to purchase the debt of countries like Greece (an extreme example to illustrate the argument) because there is no assurance that their funds will be safe.

Why do nations have to sell bonds to finance their operations? Because their current accounts do not have enough money to fund all the services the nation provides. Why is it that nations do not have enough money to fund their services? There’s a two part answer: first, nations must invest in capital-intensive projects like maintaining roads and schools that cannot always be financed with current tax revenues and second, individuals and corporations avoid or evade their tax obligations using a combination of legal and illegal means. There’s a third reason that most students of economics are reluctant to raise: the economic system itself, prone to booms, bubbles and busts, makes it difficult to accumulate and retain capital. There are winners and losers in monopoly capitalist systems and the losers are more likely to be small investors and governments. The system has been rigged for the rich. Movements of large sums are artificially influenced by the basic view that capital has to earn income. Transnational corporations have near complete control over movements of capital in the 21st century; thus governments are starved and people are starved, enslaved, made ill, injured or killed.

The preceding views spring from a background in the Critical Law and Economics discipline. Nothing happening today in the world economy gives us cause to celebrate. Not just Japan, but many European countries have been running negative interest rates since 2015.

Complaints across the political spectrum about continually increasing amounts of regulation to control money flows and dampen capital flight may make it mandatory for us to look at ways to “take it off the top” rather than spend billions chasing the money after it has flown. The Financial Transaction Tax in its various forms, also known as a Tobin Tax, presents itself as a rational method for governments to collect enough taxes to take care of their people’s needs.

3)      Inspiration

This work springs from research conducted in support of a thesis, a risk/benefit analysis on using a Financial Transaction Tax rather than FATCA and international tax treaties to raise funds to satisfy the tax needs of nations on a global basis. The unfathomable size and scope of the colossal government and private institutional bureaucracies needed to enforce FATCA and tax treaties could make the discussion in favor of an FTT with global reach fruitful to analyze.

Holding up a new analysis of the risk/benefits of FTT alongside the ever-increasing need for global Anti-Money-Laundering (AML) laws, regulations, policies and operationalization may make the case for an FTT impossible to ignore.

  1. I bolster my argument by providing an historic excursion through a few decades worth of misguided-at-best, war-crime-bad at worst, geopolitical financial actions. For many observers, it is clear that trusting the invisible hand of the market makes cash disappear like magic into the unaccountable maw of vertical integration, offshore banking and underground economies.
  • Operationalization
    1. This paper will provide a “people’s history” rather than a close financial analysis of each of the events listed herein. There will be plenty of room for quibbling with each of my analyses but the arc of history will demonstrate that emphasizing faith in a rigged system is a ludicrous fantasy.

5)      The WWII Postwar Period 1946-1960

a)      How war profiteering led to the Marshall Plan

To remedy the unspeakable devastation wrought on Europe and Asia by WWII, American policymakers devised The Marshall Plan. The Marshall Plan aimed to provide the means for European nations to rebuild their infrastructure and economies. Our high school history books present the Marshall Plan as an altruistic outpouring of love on our devastated allies. In fact, the Plan was necessary to provide new markets for the massive production capabilities America developed during the war. Our war profiteers needed market growth to maintain and increase their earnings. Capitalism’s basis tenet is that it must grow, or die. In the infinite world we perceived before the Industrial Revolution, that fantasy could be maintained. Today, we live in a finite world shrunken by 21st century-style globalization and communicate instantly across the globe by means of the Internet. We know that our seas are the last home for incalculable amounts of land-based toxins and our water and air are the last frontiers for corporate control.

b)      Erosion of Labor Law @Taft-Harley & Demobilization of female workforce after WWII

American workers who sacrificed economic benefits of their labor during WWII were told that they were patriots. Thus, they accepted that wages were artificially held down by anti-strike provisions and wage freezes. When the war ended, workers expected to reap the fruits of their labor. The period directly after WWII saw huge increases in labor activities as rank and file members sought to make good on their deferred hopes. When we began to repatriate our veterans as the World War wound down, we had to make sure that they had jobs to return to. Thus, management pressure and government policies acted to take away jobs from women, who had constituted a high percentage of the labor force during the war. Strikes, work-to-rule, and secondary boycott actions increased dramatically. Legislators took action: the Taft-Hartley Act, passed in 1948, began the long process that has decimated the union movement in the US. Workers were “protected” from union “abuses” under the Act.[1] [2]

Next week:

     Remobilization of armament industry (Red Scare); The Bracero Program; Steel Industry Strikes

###

Timeline of market incidents from 1928 to 2016

A People’s History of Stock Market Crashes 1946-2016: The View from Below
Timeline Before Study– Notable events
1929 Market Collapse into Great Depression
1936 Wagner Act passed
1937-38 Recession within Depression

Timeline of Study
Postwar Period
1946 Repatriation of solders
1946 Women frozen out of jobs
1946 Marshall Plan
1948 Taft-Hartley Act
1948 Red Scare & Permanent War Footing of US Economy..
1950 s
Cold War (until 1988)
1955 Bracero Program
1959 Steel Industry Strikes
Space Race – Piddling away our commonwealth into orbit
1960s The Conquest of Cool
1960 “Mad” Men
1960 The Pill
1962 Kennedy Slide aka Flash Crash of 1962
1963 Studebaker Motors Pension Fund Failure
1963 Kennedy Assassination
1964 Equity Funding Mutual Funds Failure
1968 Martin Luther King Jr. Assassinated
1968 Robert F. Kennedy Assassinated

1968 Nixon President by fluke
1971 US dollar now backed by oil
1973-1974 stock market crash due to high oil prices
1973 OPEC Oil Embargo on US
1973 Inflation at 3.6%
1974 ERISA passed to cover bad private pension debts like Studebaker
1974 Inflation at 9.4%
1975 Privatization of Fannie Mae and Freddie Mac pays for part of VietNam War.
1977 Inflation at 5.2%
1980 Inflation at 13.9%
1980 Reagan selected
1980 Business is cool
1980 Deregulation, privatization, destruction of unions
1980 Fiscalization of national product, Phillips Curve invoked
1981 Savings and Loans deregulation, speculation allowed
1981 Deep recession begins; the worst since Depression
1985 Savings and Loan Crisis; Big bailouts needed. No one went to prison but Charles Keating. The Bush’s sure didn’t and they were involved. Greatest bank collapse since the Great Depression. (Remember this phrase. It occurs all too often.)
1987 Black Monday: largest stock market drop since the 1929 crash.
1989 Rio De Janeiro stock exchange crash
1989 Friday the 13th mini-crash
1990-1991 Recession; largest since early 1980s.
1991 Japanese asset price bubble
1992 UK forced to withdraw the pound sterling from the European Exchange Rate Mechanism (ERM) after the UK could no longer keep sterling above its agreed lower limit.

1997 Asian financial crisis
1997 Global stock market crash caused by Asian Financial Crisis
1998 Russian financial crisis
1999-2000 dot-com bubble
2000-2002 Recession from dot-com bubble caused loss of 8 Trillion of wealth
2001-2002 Collapse of Enron
2001 September 11 attacks caused global markets to drop sharply
2002 Uruguay banking crisis
2002 WorldCom accounting scandal; G.W. Bush promotes “ownership” society.
2003 Bush actors weaken state regulations so lender can make loans without regard
for buyer ability to pay.
2003 Myanmar banking crisis
2007 Chinese stock bubble
2007 US subprime and collateral markets collapse
2007 Collapse of Irish and Icelandic economies.
2007-2009 Bear market in US
2008 Russian stock market collapse
2008-2009 Belgian financial crisis
2008-2012 Icelandic Financial crisis
2008-2009 Ukrainian financial crisis
2008-2011 Irish banking crisis
2008-2012 Spanish Financial crisis
2008 UK Bank rescue package
2009 UK Bank rescue package
2009-2010 Venezuelan banking crisis

2009 Dubai debt standstill
2010 European sovereign debt crisis
2010 Student debt crisis
2010 Arab Spring
2011 Stock markets around the world plummet and remain volatile for rest of year
2011 Occupy
2011 Panama Free Trade Agreement
2013 Voting Rights Act destroyed by Supreme Court
2014 Russian financial crisis
2015 Chinese stock market crash
2016 US Presidential election mashup
2016 The Panama Papers

98 market adjustments to date
Creative Commons 4 BY License

References and Resources

[1] National Labor Relations Board, Taft-Harley Act, major provisions. https://www.nlrb.gov/who-we-are/our-history/1947-taft-hartley-substantive-provisions. Accessed 2-15-2016

[2] National Labor Relations Act, aka Wagner Act, was enacted in 1935 as a measure “just to labor,” whose grievances became ever more obvious during the Depression. It was imperative, to boost the economy, that people had income to spend and goods to consume. https://www.nlrb.gov/who-we-are/our-history/1935-passage-wagner-act Accessed 2/15/2016

[3] Various social problems in the US have been identified as “wars” for similar reasons. One example is the “War on Drugs,” the US’s most expensive and longest war, going on four decades now.

[4] Duncan Lyall Burns. The Steel Industry, 1939-1959: A Study in Competition and Planning. Cambridge University Press. P. 167, 132 US dominated industry Table 6.

[5] Chicago Tribune Archives, German Steel Workers Call Strike April 9. April 1, 1958. http://archives.chicagotribune.com/1958/04/01/page/22/article/german-steel-workers-call-strike-april-9. Accessed March 1, 2016

[6] John F. Kennedy. JFK Library. Remarks by Senator John F. Kennedy at a Democratic Party reception in Pueblo, Colorado. http://www.jfklibrary.org/Asset-Viewer/Archives/JFKCAMP1960-1031-004.aspx

[7] L.J. Seidler, F. Andrews, M.J. Epstein. M.J. Equity Funding Papers: The Anatomy of a Fraud. (1977) https://www.ncjrs.gov/App/Publications/abstract.aspx?ID=57732

“The fraud at Equity Funding Corporation of America was essentially a securities fraud. While much attention has been focused on the insurance aspects, especially the manufacture of bogus policies, that activity was merely one part of a much larger stock fraud that began at or before the time Equity Funding’s first public offering in 1964. The perpetrators of the fraud, who were major holders of the company’s stock, intended to inflate and keep the market price of the company’s common stock for the purposes of personal enrichment and ego enhancement. They wanted to be known as the management force behind a company believed to phenomenally successful. The fraud was implemented principally by inflating the company’s reported earnings largely through recording nonexistent commission income. This practice appears to have begun at least as early as 1964 in anticipation of the company’s first offering of common stock…”

[8] American Institute of Certified Public Accountants. (1975). Report of the Special Committee on Equity Funding: The adequacy of auditing standards and procedures currently applied in the examination of financial statements. New York: American Institute of Certified Public Accountants.

[9] Pension Benefit Guaranty Corporation http://www.pbgc.gov/about/who-we-are/pg/history-of-pbgc.html Accessed March 31, 2016.

[10] Ibid.

[11] Ibid.

[12] Ibid.

[13] The Employee Retirement Income Security Act of 1974: The First Decade. http://www.aging.senate.gov/imo/media/doc/reports/rpt884.pdf

[14] Emily Brandon, The Ten Biggest Failed Pension Funds. US News and World Report. Aug. 23, 2010.

http://money.usnews.com/money/blogs/planning-to-retire/2010/08/23/the-10-biggest-failed-pension-plans

[15] Roger Lowenstein, The Long Sorry Tale of Pension Promises. Wall Street Journal.  updated October 1, 2013.

[16] Mary Williams Walsh. Failed Pensions: A Painful Lesson in Assumptions. The New York Times. November 12, 2013.

http://www.nytimes.com/2003/11/12/business/failed-pensions-a-painful-lesson-in-assumptions.html?pagewanted=all

[17] American Heritage Dictionary definition:

co-optation. (n.d.) American Heritage® Dictionary of the English Language, Fifth Edition. (2011). Accessed March 22, 2016  http://www.thefreedictionary.com/co-optation

[18] Thomas F. Frank, (2000). “The Conquest of Cool: Business Culture, Counterculture, and the Rise of Hip Consumerism.” Relevant excerpt: http://www.press.uchicago.edu/Misc/Chicago/259919.html  Accessed March 3, 2016

[19] Zinn Education Project. Howard Zinn is the author of the groundbreaking book The People’s History of the United States.

Black Panther Ten-Point Platform.

  1. We want freedom. We want power to determine the destiny of our Black and oppressed communities.
  2. We want full employment for our people.
  3. We want an end to the robbery by the capitalists of our Black and oppressed communities
  4. We want decent housing, fit for the shelter of human beings.
  5. We want decent education for our people that exposes the true nature of this decadent American society. We want education that teaches us our true history and our role in the present-day society
  6. We want completely free health care for all Black and oppressed people.
  7. We want an immediate end to police brutality and murder of Black people, other people of color, and all oppressed people inside the United States.
  8. We want an immediate end to all wars of aggression.
  9. We want freedom for all Black and oppressed people now held in U.S. federal, state, county, city and military prisons and jails. We want trials by a jury of peers for all persons charged with so-called crimes under the laws of this country.
  10. We want land, bread, housing, education, clothing, justice, peace, and people’s community control of modern technology.

http://zinnedproject.wpengine.netdna-cdn.com/wp-content/uploads/2011/10/blackpanthers_10pointprogram.pdf Acc. 3-22-2016

[20] Adam Liptak. June 25, 2013. Supreme Court Invalidates Key Part of Voting Rights Act. NYT Permalink http://nyti.ms/1FUpwx5 Acc. March 21, 2016

[21] Thomas F. Frank (2000). The Conquest of Cool (abstract) 03-22-2016.

[22] Frank, Ibid.

[23] Bernays, Edward L. (1928) Propaganda. http://igpub.com/propaganda/ Reissued pamphlet & full text at

https://archive.org/stream/Propaganda1928ByEdwardL.Bernays/Propaganda(1928)%20by%20Edward%20L.%20Bernays_djvu.txt Acc. 03/22/2016

[24] Bernays. Propaganda. Page 9. First paragraph in first chapter of book, titled “Organizing Chaos.”

[25] J.P. Forrester. Fannie Mae/Freddie Mac Uniform Mortgage Instruments: The Forgotten Benefit to Homeowners. Missouri Law Review, Vol. 72, Iss. 4 [2007]. Art. 5

[26] J.P. Forrester.. Art. 5, Page 1

[27] Carlos Murphy. The Petrodollar System Explained. 1/26, 2012. Alternative Economics Blog.

The Petrodollar System Explained

[28] The U.S. Military and Oil. Union of Concerned Scientists. http://www.ucsusa.org/clean_vehicles/smart-transportation-solutions/us-military-oil-use.html#.VvLfFKcrJkg Accessed. 3-23-2016

[29] Middlebury University http://cr.middlebury.edu/es/altenergylife/70’s.htm Accessed. 3-23-2016

[30] Historical Inflation Rates: 1914-2016. US Inflation Calculator site. Accessed. 3-23-2016 http://www.usinflationcalculator.com/inflation/historical-inflation-rates/ Acc. 3-12-2016

[31] Global Nonviolent Action Database. American air-traffic controllers strike for benefits and pay, 1981. https://nvdatabase.swarthmore.edu/content/american-air-traffic-controllers-strike-benefits-and-pay-1981

[32] Florencio Lopez-de-Silanes, Andrei Scleifer, Robert W. Vishny. Privatization in the United States. The Rand Journal of Economics. Vol. 28, No. 3, Autumn 1997 pp. 447-471 http://scholar.harvard.edu/shleifer/files/privatization_us.pdf

[33] Lopez-de-Silanes, Ibid.

[34] Evans, Greg (August 1989). “The Desert Fox”. Cincinnati Magazine.

[35] Miller, Judith (1979-07-03). “S.E.C. Charges American Financial” (fee required). The New York Times.

[36] The Lincoln Savings and Loan Investigation: Who Is Involved? New York Times, 11-22-1989 http://www.nytimes.com/1989/11/22/business/the-lincoln-savings-and-loan-investigation-who-is-involved.html

[37] Martin Tolchin (1990-09-27). “Legal Scholars Clash Over Neil Bush Actions”. New York Times.

[38] T. Sablik. Recession of 1981-1982. Federal Reserve Bank of Richmond. http://www.federalreservehistory.org/Events/DetailView/44

[39] Sablik, Ibid.

[40] Sablik, Ibid.

[41] Phillips Curve, Investopedia http://www.investopedia.com/terms/p/phillipscurve.asp

[42] Sablik, Op.Cit.

[43] D. Bernhard, M. Eckblad. Black Monday, the Stock Market Crash of 1987. Federal Reserve Bank of Chicago. http://www.federalreservehistory.org/Events/DetailView/48

[44] Bernhard. Ibid.

[45]Savings and Loans Crisis: Causes, Cost: How Congress Created the Biggest Bank Collapse Since the Depression http://useconomy.about.com/od/grossdomesticproduct/p/89_Bank_Crisis.htm

[46] 1990-92 Early 1990s Recession. Slaying the Dragon of Debt: Fiscal Politics and Policy from the 1970s to the Present. http://vm136.lib.berkeley.edu/BANC/ROHO/projects/debt/1990srecession.html

[47] 1990-92 Early 1990s Recession, ibid.

[48] On the Issues. http://www.ontheissues.org/Celeb/Dick_Cheney_Budget_+_Economy.htm

[49] Amazon.com listing for Dow 36,000: The New Strategy for Profiting from the Coming Rise in the Stock Market.

http://www.amazon.com/Dow-36-000-Strategy-Profiting/dp/0609806998

[50] A. Beattie. Market Crashes: The Dotcom Crash. Investopedia.

http://www.investopedia.com/features/crashes/crashes8.asp

[51] Beattie. Ibid.

[52] T. DeGrace. The Dot Com Bubble Burst That Caused the 2000 Stock Market Crash.

http://www.stockpickssystem.com/2000-stock-market-crash/

[53] Money Crashers. Factors that led to the Dot-Com Bubble Burst.

History of the Dot-Com Bubble Burst and How to Avoid Another

[54] Money Crashers, ibid.

[55] Money Crashers, ibid.

[56] http://www.theguardian.com/theobserver/2003/may/18/society

[57] Called to Account. Time Magazine. A special package.

http://content.time.com/time/specials/packages/0,28757,2021097,00.html

[58] B. Lyke, M. Jickling. WorldCom: The Accounting Scandal. CRS Report for Congress. University of Maryland.

[59] Lyke, ibid.

[60] Jo Becker, Sheryl Gay Stolberg, Stephen Labaton. Bush drive for home ownership fueled housing bubble. New York Times. Dec. 21, 2008. http://www.nytimes.com/2008/12/21/business/worldbusiness/21iht-admin.4.18853088.html?_r=0

[61] Becker ibid.

[62] Eliot Spitzer. Predatory Lenders’ Partner in Crime. Washington Post. February 14, 2008

http://www.washingtonpost.com/wp-dyn/content/article/2008/02/13/AR2008021302783.html

[63] Spitzer. Ibid.

[64] D. Baker. The Housing Crash Recession: How Did We Get Here? PBS. NOW. 3-21-2008

http://www.pbs.org/now/shows/412/housing-recession.html

[65] Caja Whitehouse, JPMorgan forks over $50M in ‘robo-signing’ Pact with DOJ. USA Today. March 4, 2015.

http://www.usatoday.com/story/money/2015/03/03/jpmorgan-robo-signing-department-justice/24332863/

[66] G. Connor. IMF Post-Program Monitoring Report on Ireland notes the unusual risk profile of the Irish banking sector. Irisheconomy.ie. January 20, 2016.

[67] Connor. Ibid.

[68] Connor. Ibid.

[69] M. O’Brien. The miraculous story of Iceland. The Washington Post. June 17, 2005. https://www.washingtonpost.com/news/wonk/wp/2015/06/17/the-miraculous-story-of-iceland/

[70] O’Brien. Ibid.

[71] O’Brien. Ibid.

[72] O’Brien. Ibid.

 

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Bernie Sanders wins the Interwebs! Four reasons Bernie can become our President.

Bernie Sanders calls us to account.
Bernie Sanders calls us to account.

The New York Times frets that Hillary’s campaign suffers from “a lack of enthusiasm.” Well yeah, duh! People keep saying that Hillary is “the one,” yet the public keeps demonstrating how reluctant they are to support a chameleon candidate whose views shift according to polls. This enthusiasm gap is handily demonstrated in a major social media platform. I am not a political naif. I started my education in 1969 as a political science major. During these years I shifted my alliances from the right of the Republican Party to the left of the Democratic Party based on the tractor-trailer truckloads of evidence that counters the GOP worldview I was raised on. So here are the four reasons of the day!

First, Bernie is totally electable. He has a statistically significant lead among Facebook followers.

I was just mucking around on the Internet, reading my email, when I found myself at Bernie Sanders’s Facebook page. I was pleased, as a Bernie supporter, to see that he had nearly 2,000,000 that’s TWO MILLION followers. 

by Olivia LaRosa, November 22, 2015

Then I thought I should go see how many followers the other Democratic candidates had. Hillary Clinton has FEWER Facebook followers than Bernie Sanders. That’s right. She has been in politics for 40 years, has nearly limitless money, a lock on the corporate media, and she still has fewer followers than Bernie.

Bernie Sanders for President 1,984,719

Hillary Clinton 1,811,982

So, you are thinking that 170,000 likes aren’t all much of a spread in a nation with 330,000,000 people, and you are right.

OK, let’s go on…

Let’s step back a bit and look at both candidates’ related sites to see how those numbers look:

Senator Bernie Sanders  2,473,389 members

Hillary in 2016 201,257

Hillary Clinton 2016 2,932 members — no, I did not forget to type any numbers here

Let’s figure this:                                     2,473,389

–    201,257

                                                               –        2,932

Bernie’s lead:                                         2,269,200

Going on, we see another

Bernie Sanders for President                     92,393

Unofficial Bernie Sanders for President 115,447

adds up to another 184,706 for Bernie*

Most people in the US have not been offered the opportunity to learn more about Bernie’s ideals and plans. His lead can only grow.

*math approximate. I did not count all the Bernie and Hillary FB pages, only the most prominent

2. Bernie will be able to work with Congress because he will carry Democrats into offices across the nation. 

Many people lament the gridlock in Washington and most of our state capitols. They cannot see how the President can make a difference.

My theory is that the ENTIRE US House of Representatives and a full 1/3 of the Senate is up for re-election. If Bernie’s following continues to grow at these astonishing rates, he will have long electoral coattails. In other words, people who vote for Bernie are not likely to put up with posturing triangulators and fear mongers in other offices. The Republicans and a good many DINOs will be tossed out of office.

Even if they aren’t tossed out, Bernie knows how to work across the aisle without compromising his principles.

BerniePitching018

3. Bernie’s brand of social democracy builds strong families and strong countries. 

Forget Denmark! Germany’s is a nation of more than 80,000,000. Their social democracy features a form of universal health care. Labor unions share the seats on corporate boards 50/50 with company management. This country is the economic engine of Europe.

Germany’s per capita wealth among the highest in the world, say those crazy loony libs at the CIA.

The benefits that Germans receive, such as health care, at least a month of vacation time, shorter work days and scads of other perks more than make up for the $10K difference in annual income between the USA and Germany per capita. It also allows German families family time to build those family values. Pensions are generous.

Colleges in Germany are FREE for people from all over the world.  Germans enjoy superior elementary education and well-maintained infrastructure. Germans are allergic to waging wars. The cost has been too high. Let’s get our peace dividend and let someone else police the world.

BernieVeteransWar

 

4. Bernie’s Financial Transaction Tax (FTT) Proposal can solve forever our broken taxation system. 

I think that taxes are the price I pay for civilization. Our corporations and our billionaires do not agree. They pay an army of accountants and lawyers to rig the system in their favor.

A Financial Transaction Tax on Wall Street trades would fund free public college for anyone who works hard and gets good grades.

Only the mouthpieces of billionaires like Forbes and Bloomberg see a problem with it. If we take a tiny amount off the top, like .005%, then they cannot hide it in tax “havens.” People who earn great benefits from American workers and consumers should pay it forward, not squirrel it away. If you don’t have it, you can’t hide it!

We could get rid of volumes of tax law that are littered with loopholes. All of those lawyers and accountants could be helping people instead of trying to figure out how to steal “honestly” and cheat our country.

In conclusion, it seems to me that the only obstacles standing in the way of a Sanders Presidency are those without a vision of a peaceful future. You cannot wage war to gain peace. Everybody knows THAT!

Posted in 99%, Bernie Sanders for President, Economics 101, Education, Everything We Know is Total BS, Job Creation, Labor Law and Policy, practical economics, Tax Policy, Working People's Rights | Comments Off on Bernie Sanders wins the Interwebs! Four reasons Bernie can become our President.

GOP says overhaul, wants to cut taxes more because that has worked so well during the last 50 years

Reeling From 2016 Chaos, G.O.P. Mulls Overhaul of Primaries Guess what kind of overhaul they think they want? Keep more people from voting. That is their sole political strategy. I wouldn’t mind if they were only willing to pay their fair share. None of us should ever pay more than a dime extra in taxes, but we should pay what we owe.

My father used to say, “Deb, I hope you have to pay a million in taxes.” I thought that was a fair exchange. After all, a million in taxes means you grossed $15 million damn dollars in long term capital gain tax rate. Sheesh. No one works harder to stay alive than the unemployed and disabled among us.

Cry me a river about your tax free $14,000,000 annual income.

Posted in 14 signs of fascism, 1percent, Authoritarianism, Bernie Sanders for President, Black Swan, Cities and Urban Planning, Economics 101, Evil Capitalism101, Fascism, Free Market Paradigm, Patriarchy, Tax for Disabled Families, Tax Policy, The Invisible Hand, The Powell Memorandum, We need shelter, Worker's News | Leave a comment

Dem Minions’ Heads Roll: Dems Discussing Dropping Debbie

<SNIP>This is the beginning of the end for the Clinton campaign. They think that if they get rid of the incompetent and unpleasant Debbie Wasserman Schultz, Hillary’s lackluster campaign will get a bump.

Are you ready to rock?

Are you ready to rock?

For months now, poll after poll has shown Bernie winning over Trump by 10% or more. This is far outside the margin of error, which means that in all cases, right now, Bernie demolishes Trump in a landslide… </SNIP>

Go to Original at DearBernie.com

http://www.dearbernie.com/2016/05/25/minions-heads-begin-to-roll/

Posted in Bernie Sanders for President, Uncategorized | Leave a comment

The Electoral Follies: A running stream of clips from my daily work battling hillarybots, trolls, and other pod people

April 26, 2016 https://pivotamerica.com/milliondollartrolls-trending-twitter-hillarys-paid-trolls-get-6-bernie-groups-removed-facebook-200000-subscribers/

HITLER, STALIN, AND ALL OTHER DICTATORS WOULD BE PROUD OF THE CENSORSHIP HERE IN AMERICA.

Patrick Curl | April 25, 2016 | Bernie Sanders, Featured, Hillary Clinton | 9 Comments
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In a move that eerily hearkens out of the depths of 1984 so far reportedly at least 7 pro-Bernie Facebook groups with over 200,000 members have mysteriously vanished.

May 15, 2016 Nevada Democrats are reeling after Clinton operatives took over the meeting Saturday May 14. The chair was running a roll call vote. A motion was made to change it to voice acclamation. Prepare to be shocked when the chair ignores the majority of the duly chosen delegates and electors to declare that Clinton won.

http://www.salon.com/2016/05/16/what_the_hell_just_happened_in_nevada_sanders_supporters_are_fed_up_and_rightfully_so/?source=newsletter

May 16, 2016 Evening
http://www.realclearpolitics.com/articles/2016/05/13/some_democrats_increase_pressure_on_sanders_to_exit_130555.html

We are sick of you corporate cruise-missile 5-house-owning million-dollar-wedding-haver Democrats.

“It’s actually harmful because she can’t make that general-election pivot the way she should,” Feinstein said. “Trump has made that pivot.”

Bernie is not harming Hillary. He isn’t even able to force her to be honest. Truth is: Hillary is harming Hillary.

Along with millions of other Americans, I was neutral about Hillary’s candidacy. I preferred Sen. Sanders and his positions but I would not have been disturbed by her election as President. Then the debates began.
I was shocked when Hillary started misrepresenting Bernie’s record during the second Democratic Debate. Her demeanor was anything but Presidential.

Posted in 1percent, Everything We Know is Total BS, Hillary Clinton, Systematic Looting and other Privatization Schemes, This is bad., Trolls | Comments Off on The Electoral Follies: A running stream of clips from my daily work battling hillarybots, trolls, and other pod people

People’s History of Stock Market Crashes: Timeline of Economically Significant Events

A People’s History of Stock Market Crashes 1946-2016: The View from Below

Appendix A

1929-2016

List of some economically significant events since the Great Depression
Timeline Before Study– Notable events
1929 Market Collapse into Great Depression
1936 Wagner Act passed
1937-38 Recession within Depression

Timeline of Study
Postwar Period

  • 1946                       Repatriation of solders
  • 1946                       Women frozen out of jobs
  • 1946                       Marshall Plan
  • 1948                       Taft-Hartley Act
  • 1948                       Red Scare & Permanent War Footing of US Economy..
  • 1950 s                    Cold War (until 1988)
  • 1955                       Bracero Program
  • 1959                       Steel Industry Strikes
  • 1959                       Space Race – Frittering away our commonwealth into orbit
  • 1960s                     The Conquest of Cool
  • 1960                       “Mad” Men
  • 1960                       The Pill
  • 1960                       Mutually Assured Destruction Doctrine of Nuclear Power Balancing
  • 1962                       Kennedy Slide aka Flash Crash of 1962
  • 1963                       Studebaker Motors Pension Fund Failure
  • 1963                       Kennedy Assassination
  • 1964                       Equity Funding Mutual Funds Failure
  • 1968                       Martin Luther King Jr. Assassinated
  • 1968                       Robert F. Kennedy Assassinated
  • 1968                       Nixon President by fluke
  • 1971                       US dollar now backed by oil
  • 1973-1974            stock market crash due to high oil prices
  • 1973                       OPEC Oil Embargo on US
  • 1973                       Inflation at 3.6%
  • 1974                       ERISA passed to cover bad private pension debts like Studebaker
  • 1974                       Inflation at 9.4%
  • 1975                       Privatization of Fannie Mae and Freddie Mac pays for part of VietNam War.
  • 1977                       Inflation at 5.2%
  • 1980                       Inflation at 13.9%
  • 1980                       Reagan selected
  • 1980                       Business is cool
  • 1980                       Deregulation, privatization, destruction of unions
  • 1980                       Fiscalization of national product, Phillips Curve invoked
  • 1981                       Savings and Loans deregulation, speculation allowed
  • 1981                       Deep recession begins; the worst since Depression
  • 1985       Savings and Loan Crisis; Big bailouts needed. No one went to prison but Charles Keating. The Bush’s sure didn’t and they were involved. Greatest bank collapse since the Great Depression. (Remember this phrase. It occurs all too often.)
  • 1987                       Black Monday: largest stock market drop since the 1929 crash.
  • 1989                       Rio De Janeiro stock exchange crash
  • 1989                       Friday the 13th mini-crash
  • 1990-1991            Recession; largest since early 1980s.
  • 1991                       Japanese asset price bubble
  • 1992       UK forced to withdraw the pound sterling from the European Exchange Rate Mechanism (ERM) after the UK could no longer keep sterling above its agreed lower limit.
  • 1997                       Asian bubble pops: financial crisis
  • 1997                       Global stock market crash caused by Asian bubble financial Crisis
  • 1998                       Russian financial crisis
  • 1999-2000            dot-com bubble
  • 2000-2002            Recession from dot-com bubble caused loss of 8 Trillion of wealth
  • 2001                       September 11 attacks caused global markets to drop sharply
  • 2001-2002            Collapse of Enron
  • 2002                       Uruguay banking crisis
  • 2002                       WorldCom accounting scandal; G.W. Bush promotes “ownership” society.
  • 2003       Bush actors weaken state regulations so lender can make loans without regard for buyer ability to pay.
  • 2003                       Myanmar banking crisis
  • 2007                       Chinese stock bubble
  • 2007                       US subprime and collateral markets collapse
  • 2007                       Collapse of Irish and Icelandic economies.
  • 2007-2009            Bear market in US
  • 2008                       Russian stock market collapse
  • 2008-2009            Belgian financial crisis
  • 2008-2012            Icelandic Financial crisis
  • 2008-2009            Ukrainian financial crisis
  • 2008-2011            Irish banking crisis
  • 2008-2012            Spanish Financial crisis
  • 2008                       UK Bank rescue package
  • 2009                       UK Bank rescue package
  • 2009-2010            Venezuelan banking crisis
  • 2009                       Dubai debt standstill
  • 2010                       European sovereign debt crisis
  • 2010                       Student debt crisis
  • 2010                       Arab Spring
  • 2011                       Stock markets around the world plummet and remain volatile for rest of year
  • 2011                       Occupy
  • 2011                       Panama Free Trade Agreement
  • 2013                       Voting Rights Act destroyed by Supreme Court
  • 2014                       Russian financial crisis
  • 2015                       Chinese stock market crash
  • 2016                       US Presidential election mashup
  • 2016                       The Panama Papers

98 financially significant events from 1929 to date

Posted in 99%, Bailouts and Tax Cuts, Corporate Crimes, Evil Capitalism101, Government is Not a Business, People, Peoples History, Political Science, Systematic Looting and other Privatization Schemes, we don need no steeking regulations | Tagged , , | Comments Off on People’s History of Stock Market Crashes: Timeline of Economically Significant Events

escrap

It is difficult to “get ahead,” as in “accumulate assets,” in today’s radically uncertain investment markets. Nevertheless, it is received opinion in the US that if one “plays by the rules” one can “succeed.” This kind of success is defined narrowly as being able to save up enough money to buy a home, raise children, send them to college, and then retire without being a “burden on society.” These rules included legal protections for workers and consumers. More people prospered under these regulatory regimes.

Now, the regulatory regimes have been attenuated, weakened, maligned, and captured. As a result, corporations have been allowed to legally plunder the people that they are meant to serve. Their avarice knows no bounds. These financial actors are cannibalizing their hosts, we the people and the planet we depend upon for life, without even a thank you. In the corporate jubilation that followed every deregulation and privatization, our savings and home equity were plundered without apology or punishment of the perpetrators. I aim to show the levers and gears of these financial meltdowns, their causes, the failures that follow, and the effects of those failures on the typical nuclear family. I intend to demonstrate that a paradigm shift is occurring right now about how the USA might right its financial ship and get back in touch with its inhabitants. Young people are saying we have to figure out how to reward ourselves in ways that take into consideration equity, equality and fundamental fairness. We have to figure out how to invest in ways that create happy communities and happy families. How can investors protect their assets in a world gone mad?

Table of Contents

1)     Abstract 3

2)     Introduction. 5

3)     Inspiration. 6

5)     The WWII Postwar Period 1946-1960. 7

  1. a) How war profiteering led to the Marshall Plan. 7
  2. b) Erosion of Labor Law @Taft-Harley & Demobilization of female workforce after WWII. 8
  3. c) Remobilization of armament industry (Red Scare) 8
  4. d) The Bracero Program.. 9
  5. e) Steel Industry Strikes. 9

6)     The Last Decade of Dominance 1960-1969. 10

  1. a) The Pill 10
  2. b) The Stock Market seeks growth opportunities – Equity Funding. 11
  3. c) Studebaker Pension Fund failure. 11
  4. d) The conquest of cool 14

7)     The Seventies Changed Everything 1970-1979. 17

  1. a) The fiscalization of national product 17
  2. b) Oil embargo. 18
  3. c) Wage and price controls. 19
  4. d) Interest rate climb. 19
  5. e) War on Inflation. 19

8)     The Eighties – Business is Cool 19

  1. a) Deregulation and privatization. 19
  2. b) The fiscalization of national product 20
  3. c) The Savings and Loan crisis. 20
  4. d) Early 1980s recession. 22
  5. e) Black Monday 1987. 23

9)     The Nineties. 24

  1. a) Early 1990s recession. 24

10)        The 2000s. 25

  1. a) Early 2000s recession – dot com bust 25
  2. b) The collapse of Enron 2001-2002. 26
  3. c) WorldCom accounting scandal 27
  4. d) Subprime mortgage crisis. 27
  5. e) Real estate market cratered, stock market crashed AGAIN.. 28
  6. f) The Housing Bust, the Repo scams, and Middle class hollowing out 29

11)        The – “20teens” – A decade of crises in only 6 years. 30

  1. a) Irish and Icelandic banking crises. 30
  2. b) Student debt crisis. 31
  3. c) 2014 Russian financial crisis. 31
  4. d) 2015 Chinese Stock Market Crash. 31

12)        Increasing inequality without fundamental fairness brings new dynamics. 31

  1. a) Arab Spring & Libya & Occupy. 32
  2. b) The rise of Bernie Sanders and the return of class analysis. 32

13)        Conclusion. 32

1)      Abstract

It is difficult to “get ahead,” meaning “accumulate assets.” However, it is received opinion in the US that if one “plays by the rules” one can “succeed.” This kind of success is defined narrowly as being able to save up enough money to buy a home, raise children, send them to college, and then retire without being a “burden on society.” These rules included legal protections for workers and consumers. A broader range of society prospered under these regulatory regimes.

Now, the regulatory regimes have been attenuated, weakened, maligned, and captured. As a result, corporations have been allowed to legally plunder the people that they are meant to serve. Their avarice knows no bounds. These financial actors are cannibalizing their hosts, we the people and the planet we depend upon for life, without even a thank you. In the corporate jubilation that followed every deregulation and privatization, our savings and home equity were plundered without apology or punishment of the perpetrators. I aim to show the levers and gears of these financial meltdowns, their causes, the failures that follow, and the effects of those failures on the typical nuclear family. I intend to demonstrate that a paradigm shift is occurring right now about how the USA might right its financial ship and get back in touch with its inhabitants. Young people are saying we have to figure out how to reward ourselves in ways that take into consideration equity, equality and fundamental fairness. We have to figure out how to invest in ways that create happy communities and happy families. How can investors protect their assets in a world gone mad?

2)      Introduction

In 2015, Japan’s sovereign debt offerings went into “negative” territory. This means that Japan is offering its bonds on the market and expecting investors to pay for the privilege of holding its debt rather than paying interest.

Japan can expect to sell its debt instruments, even with that premium cost to the holder, because sovereign debt of big rich nations like Japan and the USA is considered a safe and stable place to park investor funds when other markets are deemed too risky for investment. In other words, people do not want to purchase the debt of countries like Greece (an extreme example to illustrate the argument) because there is no assurance that their funds will be safe.

Why do nations have to sell bonds to finance their operations? Because their current accounts do not have enough money to fund all the services the nation provides. Why is it that nations do not have enough money to fund their services? There’s a two part answer: first, nations must invest in capital-intensive projects like maintaining roads and schools that cannot always be financed with current tax revenues and second, individuals and corporations avoid or evade their tax obligations using a combination of legal and illegal means. There’s a third reason that most students of economics are reluctant to raise: the economic system itself, prone to booms, bubbles and busts, makes it difficult to accumulate and retain capital. There are winners and losers in monopoly capitalist systems and the losers are more likely to be small investors and governments. The system has been rigged for the rich. Movements of large sums are artificially influenced by the basic view that capital has to earn income. Transnational corporations have near complete control over movements of capital in the 21st century; thus governments are starved and people are starved, enslaved, made ill, injured or killed.

The preceding views spring from a background in the Critical Law and Economics discipline. Nothing happening today in the world economy gives us cause to celebrate. Not just Japan, but many European countries have been running negative interest rates since 2015.

Complaints across the political spectrum about continually increasing amounts of regulation to control money flows and dampen capital flight may make it mandatory for us to look at ways to “take it off the top” rather than spend billions chasing the money after it has flown. The Financial Transaction Tax in its various forms, also known as a Tobin Tax, presents itself as a rational method for governments to collect enough taxes to take care of their people’s needs.

3)      Inspiration

This work springs from research conducted in support of a thesis, a risk/benefit analysis on using a Financial Transaction Tax rather than FATCA and international tax treaties to raise funds to satisfy the tax needs of nations on a global basis. The unfathomable size and scope of the colossal government and private institutional bureaucracies needed to enforce FATCA and tax treaties could make the discussion in favor of an FTT with global reach fruitful to analyze.

Holding up a new analysis of the risk/benefits of FTT alongside the ever-increasing need for global Anti-Money-Laundering (AML) laws, regulations, policies and operationalization may make the case for an FTT impossible to ignore.

  1. I bolster my argument by providing an historic excursion through a few decades worth of misguided-at-best, war-crime-bad at worst, geopolitical financial actions. For many observers, it is clear that trusting the invisible hand of the market makes cash disappear like magic into the unaccountable maw of vertical integration, offshore banking and underground economies.
  • Operationalization
    1. This paper will provide a “people’s history” rather than a close financial analysis of each of the events listed herein. There will be plenty of room for quibbling with each of my analyses but the arc of history will demonstrate that emphasizing faith in a rigged system is a ludicrous fantasy.
Posted in Uncategorized | Comments Off on escrap

Had it with hucksters

This here is why feminism has a bad rap. People like Gloria Steinem and Nicholas Kristof support a poser like Ruchira Gupta. Gupta is victimizing adult sex workers in her crazed zealot’s campaign to stop all sex work. Gupta’s hucksterism has yielded a Clinton Global Citizen Award in 2009 and an honorary degree from Smith College.

Yes, that Clinton. She is probably sick of us calling her on her BS but too bad.

People have rational reasons to choose sex work, believe it or not. The children who are victimized and enslaved for sex work: these are the ones we want to help.

These child slaves and adult sex workers are two separate populations and the social recognition of that fact will cut the HIV transmission rate in half.

This article explores the vacuousness of the prostitution abolition movement. After Amnesty International approved a policy in support of legalization of sex work, Gupta and her ilk went mad.

Here’s a snip of the article:

Steinem’s guide in Sonagachi, and during part of her 2014 trip, was Ruchira Gupta, an Indian former journalist who founded a group called Apne Aap, which tries to help women leave sex work and has helped the police raid brothels. Gupta has strong ties with American abolitionists. She received funding from the State Department during the Bush administration, won a Clinton Global Citizen Award in 2009 and is scheduled to receive an honorary degree from Smith College this month. Steinem is on Apne Aap’s advisory board. Nicholas Kristof, an opinion columnist for The New York Times who has gone on brothel raids (including one in Cambodia that he live-tweeted), has called Gupta a “brilliant social entrepreneur.”

Kristof “live-tweeted” the debate. Kinda makes me ill to think about.

Posted in Authoritarianism, Classism Racism Sexism, Human Rights Abuses, Moral Compass, This is bad. | Comments Off on Had it with hucksters

scary recent economic history makes me scared

Rebalancing a portfolio: a commentary on the market as a whole

I am back in school. I swear this is my last degree. I had to drop out of an LL.M. Program in Taxation and Financial Services in 2013 due to illness. I am now back, with a change in emphasis to Wealth Management. Really, I went back to write my thesis on the Financial Transaction Tax v. FATCA. Not coincidentally, I am a Bernie Sanders supporter and like his plan of using a speculation FTT to fund free public college in the US.

Here is my assignment for the week: Discuss why and how often we should rebalance our investment portfolios. My answer follows. ~Olivia

In a rational market with rational economic actors, rebalancing a portfolio that is well-designed makes sense. Every quarter is probably too often. Once a year is probably sufficient under those circumstances.

As we go through our lives, though, watching one sector or another of the economy blow up, it becomes easier to predict what sector will advance in the aftermath. Dealing with fairly recent history, the 199x-2001 dot com bubble was brought home to me when my young adult son started touting websites to me as good fundamentals for stock purchases. I knew then that when people with no investing history can be convinced on such flimsy evidence to part with their hard-earned dollars that we were in big trouble. Next year, the dot com bubble burst and that party was over for a while. Two years later, I was driving through Jackson, Wyoming and saw construction cranes all over the place. I thought, “WOT?” If you know Jackson, you know that it is just a tourist town based on outdoor recreation.* But, as you know the money has to go somewhere. If it isn’t in the stock market, it’s in bonds. If it isn’t in construction, its in commodities.

It is the pressure of the money itself that makes the market move. I agree with this statement by Christopher Van Slyke, “Assuming that you know the direction of prices in the short term is a fool’s errand that has proved out many many times academically.”1

There are simply too many factors to take into account, even for sophisticated institutional actors. But one thing we can be sure of: when the stock market tanks, money flows into other areas, and those areas can be predicted and acted upon.

Something went wrong, again, in 2008. There was no good place for the money to go. There still isn’t. The machine is overwhelmed and broken. We can’t simply keep building stuff or extracting natural resources every time the markets burp up another catastrophe.

Why do I claim so blithely that the machine is broken? The US had to engage in quantitative easing for 8 years in a row. The US has not felt confident enough about the market to raise the base interest rates on government obligations. Now, Japan has gone there, into negative bond interest territory. We did not hear much about it when negative interest became common in Europe in 2014-2015.2 I do not feel optimistic about the abilities of the investor class to manage the global economy here on out.

But yes, by all means, have a solid portfolio and rebalance it annually and keep your fingers crossed.

###

*When, after Seattle in November 1999 it became clear to the WTO World Economic Forum OECD Bilderburg Bohemian Grove crowd that their private events, held to determine the economic fate of the world, could no longer be conducted in large cities without people indicating their displeasure, Jackson and Doha and islands and cruise ships became the best places to hatch their plots.

1. How to Balance Your Retirement Portfolio. http://www.marketwatch.com/story/how-to-rebalance-your-retirement-portfolio-2013-11-02 Accessed 02-13-2016

2. Viewpoints: Why the Bond Market is Yielding Negative and What Negative Means for You. http://europe.pimco.com/EN/Insights/Pages/Why-the-Bond-Market-Is-Yielding-Negative-and-What-Negative-Yields-Mean-for-You.aspx PIMCO website, accessed 2-13-2016

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Posted in 1percent, Bankruptcy, Bernie Sanders for President, Black Swan, Evil Capitalism101, Free Market Paradigm, Uncategorized | Tagged , , | Comments Off on scary recent economic history makes me scared

other stuff I have written

some of it is in order…hey, I have ADD

A Blogspot Blog: Political Lobby 10. Was a Yahoo Group from the early 2000s until early 2008, when Yahoo was taken over by the right. We were Democratic to Social Libertarian in our views. The right wing trolls beat up on us for four years that I know of.

Here’s my stories about that

http://politicallobby10.blogspot.com/?zx=b7c0be04696646e1 otherwise known as if I can’t dance, it isn’t my revolution!

This was a Dogma and me project. Dogma being the lightening fast mind that she was. I lost touch with her as my health deteriorated and I got a call from them that Dogma was very ill. I tried to go up and couldn’t. Too sick myself. Always feel sorry about that.

I have published papers at www.academia.edu as Deborah Lagutaris and Olivia LaRosa.

Fact-Based Initiatives

It was in the second year of Bush’s absolutely awful second term and the religious extremists were mobbing our schools and public areas trying to enforce some made-up fundamentalist code of behavior on everyone else.

We had been struggling against a horde of right-wing orcs for more than two years then.We began to detect a pattern in their questions and deduced that source material existed for this.

One Sunday, one of our brave band of progressives went to a local church fair. The Young Republicans were handing out Chat Room Scripts. He provided me with a scanned copy of the Script. I provide it and a transcription HERE.

We chatters just wanted to keep abreast of the news. We were commonly aware of world events four hours or four days before … you get the picture…than the mainstream media reports them. This international group spanned the globe, popular anywhere English was spoken.

I had friends in the UK, Romania, Hungary, Germany, Egypt, Israel, Yemen, (not Saudi Arabia – that place seems just creepy) Lahore, Pakistan, Mumbai, India, Australia, New Zealand (charming people,) Hawaii, and all across North America. Really, you Canadian folk are so polite and advanced and funny. I told my roommates I wanted to be smuggled into Canada. They said, you don’t need to be smuggled into Canada. I said, Well, that’s the way I want to go, so they promised to do it for me. When the trolls weren’t there it was so much fun to chat with these people who were all…so much like me.

That is the biggest lesson I have learned in my decidedly odd life. People are all pretty much alike in their desires. They want to work for decent living that allows time for family activities like swimming, paddle ball, museums and libraries, beach balls, ocean waves, kite-flying at Crissy Field, &c.

 

Posted in Ask Me, Coping for disabled and underemployed people, Disability, Fascist America, They'd Rather We Just Die | Comments Off on other stuff I have written