What happened to our economy? A number of things, many in the Bush years but also Clinton didn’t help by signing the bill that allowed the banks that you and I put our money in to “invest” (read gamble). So some will say that it’s just the “free market” at work, let the chips fall where they may. There are a couple of things wrong with that thinking. One, if I wanted someone to gamble with my money I’d go to Las Vegas myself. Two, we the taxpayers provide insurance to the gamblers (banksters). If they lose big, we make it up to them. Now remember it is our money they are gambling with and it is our money we give them when they fail. This may be win-win for the banksters but definitely lose-lose for the tax payers.
Another thing is that when stocks are bought in the market, we are not really “investing”. We are buying the stocks from another gambler that is betting the price will go down. We of course are betting the price will go up. Millions of these bets are made each day with virtually none of the money actually invested in companies to build factories or increase production.
We have seen plenty of evidence of how easy it is for the insiders to manipulate stock prices. For example, if an investment house strongly supports a stock, the popularity increases and so does the price. We, the general public are just trying to get in on the bubble. Now let’s say the investment company that is promoting the increase of the stock price, bets on the price falling and at some point stops supporting the stock, bingo, the price falls and the investment house (and or their favorite clients, make big money. One guess who loses. The poor bastards (you and me) that are just trying to make some money for retirement.
Goldman Sucks and others have done similar tricks with whole countries economies. In countries like Iceland, Ireland, and Greece they help make the countries’ economies look healthy, and then bet against the strength of the economy (they buy insurance against collapse). Of course they know the economies are over-stretched, because they helped put them in that position.
The banksters without regulations are manipulating our economy and making hundreds of billions and even trillions at our expense. We need tough regulations immediately.
I am sure that if an economist reads this they would cry, but it’s how I see it.