Archives for category: Stock Market

Mitt Romney announced his VP running mate this morning. It isn’t surprising that he picked Rep. Paul Ryan, the chairman of the House Budget Committee. In that very powerful committee he is responsible for the ‘Ryan Budget’, and is a great advocate of privatizing Social Security.

No wonder Romney and his Wall Street cronies like him. Can you imagine what fun they will have devising new products for those trillions of dollars that would flow into the markets? It will make ‘Mortgage Backed Securities’ look like penny ante. And when it all goes bust, guess who will have to pick up the tab.

That’s right, you and me, the tax payer.

 

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JP Morgan, one of the venerable institutional leaders on Wall St. and around the world, reports a loss of $2+ billion on some gambling practices that have gone awry. That could have just as easily been 20 billion or perhaps 200 billion. And guess who would be called upon to bail them out.

Yet, investment banking firms such as JPM are the ones that are grumbling about too much regulation. And they are getting a tremendous amount of support from the right-wing of the political spectrum. 2008 was not that long ago.

I think that these institutions should be split up. Separate the investment banking from the commercial banking operations. Then if an investment banking firm continues to make bad decisions only the company and its customers will have to pay the price.

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 The Goldman Sachs debacle brought to light by the resignation and simultaneous op-ed piece in the NY Times by Greg Smith, brought back memories from a long time ago.

When folks would ask me about my occupation, I would jokingly answer that I was a stock broker. But I didn’t tell my mother.

They would then ask, ‘Why?’

And I would respond that she thought I was a piano player in a whore house.

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Wishing all of you out there the best during the Holiday Season.

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The huge volatility of the stock market in the last week exemplifies why investors are wary of participating in the ownership of America’s corporations.

Traders, speculators, and gamblers have too much influence upon the ebbs and flows of our stock exchanges.

I think that INVESTORS need to take back ownership of our companies.

One way of doing this would be to reinstitute minimum commissions on all stock transactions. I suggest .75% on all purchases and .50% on all sells. This way it will force the speculators to take a more in-depth look at the companies stocks that they are contemplating buying.

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