The market crisis exposes the failure of the neo-con agenda of deregulation, self regulation, privatization and contracting out. The real solution to this crisis as Stiglitz pointed out in 2006 is the socializtion of capital.
Joseph Stiglitz was awarded the Nobel Prize for Economics in 2001.
Gardels: What, then, is the ultimate impact of the Wall Street meltdown of market-driven globalization?
Stiglitz: The globalization agenda has been closely linked with the market fundamentalists -- the ideology of free markets and financial liberalization. In this crisis, we see the most market-oriented institutions in the most market-oriented economy failing and running to the government for help. Everyone in the world will say now that this is the end of market fundamentalism.
In this sense, the fall of Wall Street is for market fundamentalism what the fall of the Berlin Wall was for communism -- it tells the world that this way of economic organization turns out not to be sustainable. In the end, everyone says, that model doesn't work. This moment is a marker that the claims of financial market liberalization were bogus.
Financial markets are supposed to be a means to an end -- a more prosperous and stable economy as a result of good allocation of resources and better management of risk. But instead, financial markets didn't manage risk, they created it. They didn't enable America's families to manage the risk of volatile interest rates, and now millions are losing their homes. Furthermore, they misallocated hundreds of billions of dollar.
We will never achieve perfect stability of our financial markets, or of our economy. Markets are not self-correcting.
Gardels: What set of policies in the advanced countries can make globalization work?
Stiglitz: The prescription for making globalization work is what is generally called “the Scandinavian model.” That means high levels of investment in education, research and technology plus a strong safety net. That of course also entails, as in the Scandinavian countries, a highly progressive income tax.
Far from making these countries less competitive, it has made them more so. Though it may seem a contradiction to conservative ideologues who think cutting taxes is the answer to everything, the fact is that people are more willing to take entrepreneurial risks if they can count on a safety net and if they have the training to be innovative.
In Sweden, the social democrats who fashioned this policy have just been turned out of office. But we should not read that as a some kind of rupture in the social consensus. The new, more conservative government will only be about fine-tuning the model.
SEE:
Blue Throne Speech
Auto Solution
Not So Good News
Huh?
Super Bubble Burst
October Surprise Was The Market Crash
No Austrians In Foxholes
CRASH
Tags
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Thursday, November 20, 2008
Wednesday, November 19, 2008
Blue Throne Speech
Why am I not surprised?
Throne speech warns of deficit, offers economic plan
No specifics in Tory economic plan
Because the neo-con agenda was about the failure of Keynesianism, except now all the capitalists and their political puppets are Keynesians when the market crashes. And when they applied their neo-con agenda it was during a temporary debt and deficit crisis of their own creation and it exasperated that into a full blown Reagan Recession. A little historical fact they fail to mention.
Canadian Prime Minister Stephen Harper moved closer to an about-face on economic policy today, outlining plans to stimulate growth that may run up a budget deficit after vowing to preserve surpluses.
A month after his Conservative Party government strengthened its hand in Parliament while falling short of a majority, Harper outlined his legislative agenda in a so-called Speech from the Throne, the ceremonial opening of a session. He pledged ``support'' for the country's car makers and plans to expedite infrastructure spending.
``In a historic downturn, it would be misguided to commit to a balanced budget in the short term at any cost,'' according to the text of the speech, which by tradition was read by Governor General Michaelle Jean in the country's Parliament, while Harper and other lawmakers listened. ``Ongoing'' deficits, though, would be ``unacceptable,'' Harper said.
Harper, who pledged ahead of his Oct. 14 re-election to maintain a balanced budget, told reporters last week his government may need to provide more stimulus to the world's eighth-largest economy to boost demand amid a global recession.
SEE:
Pinocchio Conservatives
Deja Vu
Business Unionism Offers No Solution To Capitalist Crisis
tags
asset-backed commercial paper ,, gold, homes, mortgages, housing, bubble, US, economy, oil prices, sub-prime mortgage, Wall Street, crash, recession,Bernanke, Inflation, Staglation, Stock-Market, US, Federal-Reserve-Chairman, Oil, gold, commoditiesSmoot-Hawley, protectionism, tariffs, Herbert Hoover, U.S., U.S. economy, Canada, Great Depression, market crash, free trade, recession, Harper, Conservatives, deficit, Government, politics, Flaherty, Budget, GST, politicsCanada, Surplus, Economy, Taxes, EI,
Throne speech warns of deficit, offers economic plan
No specifics in Tory economic plan
Because the neo-con agenda was about the failure of Keynesianism, except now all the capitalists and their political puppets are Keynesians when the market crashes. And when they applied their neo-con agenda it was during a temporary debt and deficit crisis of their own creation and it exasperated that into a full blown Reagan Recession. A little historical fact they fail to mention.
Canadian Prime Minister Stephen Harper moved closer to an about-face on economic policy today, outlining plans to stimulate growth that may run up a budget deficit after vowing to preserve surpluses.
A month after his Conservative Party government strengthened its hand in Parliament while falling short of a majority, Harper outlined his legislative agenda in a so-called Speech from the Throne, the ceremonial opening of a session. He pledged ``support'' for the country's car makers and plans to expedite infrastructure spending.
``In a historic downturn, it would be misguided to commit to a balanced budget in the short term at any cost,'' according to the text of the speech, which by tradition was read by Governor General Michaelle Jean in the country's Parliament, while Harper and other lawmakers listened. ``Ongoing'' deficits, though, would be ``unacceptable,'' Harper said.
Harper, who pledged ahead of his Oct. 14 re-election to maintain a balanced budget, told reporters last week his government may need to provide more stimulus to the world's eighth-largest economy to boost demand amid a global recession.
SEE:
Pinocchio Conservatives
Deja Vu
Business Unionism Offers No Solution To Capitalist Crisis
tags
asset-backed commercial paper ,, gold, homes, mortgages, housing, bubble, US, economy, oil prices, sub-prime mortgage, Wall Street, crash, recession,Bernanke, Inflation, Staglation, Stock-Market, US, Federal-Reserve-Chairman, Oil, gold, commoditiesSmoot-Hawley, protectionism, tariffs, Herbert Hoover, U.S., U.S. economy, Canada, Great Depression, market crash, free trade, recession, Harper, Conservatives, deficit, Government, politics, Flaherty, Budget, GST, politicsCanada, Surplus, Economy, Taxes, EI,
Funding A Myth
While the petro economy in Alberta gets bashed the Tired Old Tories plow ahead with funding for the mythical carbon capture and storage. What a waste of money.And this from a government that supposedly is not in the business of funding business, picking winners and losers. Well carbon capture and storage is not just a loser, it does not exist yet. Call it funding the Emperors New Clothes instead of saving for a rainy day. Clean Coal technology is a right wing fantasy.
However, in the face of a $6.5-billion surplus shortfall and multibillion-dollar "green" spending commitments made when oil peaked at $147 US a barrel in July, Finance Minister Iris Evans said Tuesday she doesn't expect there will be anything left to save.
In fact, the province's new fiscal update revealed the heritage fund's value has fallen to $15.8 billion from $17.1 billion, due to the financial market meltdown.
Several government critics are calling the government's decision to push ahead with $2 billion for technology to capture and store greenhouse gas emissions foolhardy.
NDP Leader Brian Mason said the province should inject those public dollars into savings, not hand over seed money to help the energy industry cut its carbon footprint.
"That is just a tiny drop in the bucket for an unproven technology that essentially landfills carbon, rather than focussing on real reductions in carbon emissions," Mason charged.
Evans, however, defended the spending, saying it will help strengthen the province's environmental reputation. Alberta produces more greenhouse gas emissions than any other province.
"Our $2 billion towards our carbon capture and storage is a necessary expenditure to show the world, to show Canada, that we're serious about environment and we're going to get emissions under control," Evans said
Now if only we had those oil and gas royalties in place our provincial budget would not have taken such a hit
SEE:
Harpers Alberta Green Plan
Between Coal and a Hard Place
King Coal
Coal=Cancer
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However, in the face of a $6.5-billion surplus shortfall and multibillion-dollar "green" spending commitments made when oil peaked at $147 US a barrel in July, Finance Minister Iris Evans said Tuesday she doesn't expect there will be anything left to save.
In fact, the province's new fiscal update revealed the heritage fund's value has fallen to $15.8 billion from $17.1 billion, due to the financial market meltdown.
Several government critics are calling the government's decision to push ahead with $2 billion for technology to capture and store greenhouse gas emissions foolhardy.
NDP Leader Brian Mason said the province should inject those public dollars into savings, not hand over seed money to help the energy industry cut its carbon footprint.
"That is just a tiny drop in the bucket for an unproven technology that essentially landfills carbon, rather than focussing on real reductions in carbon emissions," Mason charged.
Evans, however, defended the spending, saying it will help strengthen the province's environmental reputation. Alberta produces more greenhouse gas emissions than any other province.
"Our $2 billion towards our carbon capture and storage is a necessary expenditure to show the world, to show Canada, that we're serious about environment and we're going to get emissions under control," Evans said
Now if only we had those oil and gas royalties in place our provincial budget would not have taken such a hit
SEE:
Harpers Alberta Green Plan
Between Coal and a Hard Place
King Coal
Coal=Cancer
Find blog posts, photos, events and more off-site about:
Alberta, tarsands, oilsands, Canada, state capitalism, royalties, oil, profits, Province, Bill Hunter, Alberta Royalty Review,Alberta Cabinet, Ed Stelmach,Big Oil,oil royalties, Conservatives, green, environment, Alberta, tarsands, oilsands, oil, green house gas, politics, Canada
Whew
That was close almost lost Peter Miliken as speaker of the house. Almost. Imagine Speaker Rob Anders....shudder.....
OTTAWA–They called for change, but in the end they stuck with experience and a side of optimism.
Peter Milliken, the Liberal MP from Kingston and the Islands who has been Speaker of the House of Commons since 2001, was re-elected by fellow MPs to the prestigious and demanding post yesterday.
It took five ballots for Milliken, challenged by seven other MPs, to win back his job. Many of the challengers campaigned on promises of restoring order and civility to the Commons, the scene of rancorous, partisan exchanges in recent years. Besides Milliken and Devolin, also running for the post were: New Democrat Joe Comartin (Windsor-Tecumseh); Conservative MPs Andrew Scheer (Regina-Qu'Appelle), Merv Tweed (Brandon-Souris), Rob Anders (Calgary West); and Royal Galipeau (Ottawa-Orléans) and Liberal Mauril Belanger (Ottawa-Vanier).
tags
Rob Anders, Conservatives, MP, Canada,Calgary-West,
OTTAWA–They called for change, but in the end they stuck with experience and a side of optimism.
Peter Milliken, the Liberal MP from Kingston and the Islands who has been Speaker of the House of Commons since 2001, was re-elected by fellow MPs to the prestigious and demanding post yesterday.
It took five ballots for Milliken, challenged by seven other MPs, to win back his job. Many of the challengers campaigned on promises of restoring order and civility to the Commons, the scene of rancorous, partisan exchanges in recent years. Besides Milliken and Devolin, also running for the post were: New Democrat Joe Comartin (Windsor-Tecumseh); Conservative MPs Andrew Scheer (Regina-Qu'Appelle), Merv Tweed (Brandon-Souris), Rob Anders (Calgary West); and Royal Galipeau (Ottawa-Orléans) and Liberal Mauril Belanger (Ottawa-Vanier).
tags
Rob Anders, Conservatives, MP, Canada,Calgary-West,
Turn About
"It is not a secret that in a real way this problem began in the United States
with completely inadequate regulation of the financial sector," Harper said in
Winnipeg. "Unregulated financial markets do not work. Canada has
known that for a long time. We all knew that from events of many decades
ago."
My, my now our neo-con, republican lite, libertarian free marketeer PM is proclaiming praise for state regulation. Like I said before when capitalism crashes there are no Austrians in fox holes. And as our PM has admited come a capitalist melt down there are no neo-cons in foxholes either.
Tags
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Nepotistic Boondoogle
The idea perhaps originated in the PMO after last election. Being a minority government who knew when King Stephen might get kicked from office. So lets find a legacy project for Steve. And viola what should appear on the horizon but the National Portrait Gallery. And as I pointed out here suddenly it was being moved out of Ottawa, lock, stock, and special atmospheric preservation equipment, to the Calgary riding of the PM.
Until last week when the whole idea was shelved, cause Calgary no longer looked like a shoe in for best P3 deal.
In a scathing editorial in the National Post entitled Portrait of Incompetence it is all made painfully clear. The P3 bid opened up to other cities was a mere fient, the fix was in for Calgary, until Edmonton put in two bids both lower than the Calgary costs.
The thoroughly depressing history of the project has been covered exhaustively -- but here is a capsule summary. Sheila Copps' original 2001 brainwave for a permanent centre at the old U. S. embassy in Ottawa ran headlong into cost overruns, belt-tightening in the national capital district and a new Liberal regime that was none too keen on building an expensive legacy for its leading critic. Paul Martin's government vacillated, and when it was ousted by the Conservatives, they seized upon the opportunity, first engaging in backdoor negotiations to find room for the gallery in downtown Calgary, and then opening the whole thing up to private-public bids from major cities across the country.
Edmonton threw a spanner in the works by coming up with not one but two bids that would have been extremely easy on the public purse; this led to the deadline being quietly extended so that Calgary could improve the terms of its proposed deal. Meanwhile, Ottawa's partisans put on a full-court press, arguing chauvinistically that the right place for a national gallery could not possibly be anywhere but the national capital. These master logicians told an ostensibly pretty story about the Portrait Gallery serving as a locus of educational tours of the capital, but failed ever to mention the real truth -- that in downtown Ottawa the building would probably remain a poor cousin to Parliament Hill, the National Gallery, the Museum of Civilization and other competing sites. The nation's capital Ottawa may be, but not many schools can afford to send children on the week-long field trips that the city perhaps deserves.
And speaking of Shelia Copps she has her own take on this mini-boondoogle.
The decision of Stephen Harper's Conservative government to cancel the National Portrait Gallery was a smart move to get out of a poorly conceived plan to build the museum as a public-private partnership, says former Liberal heritage minister Sheila Copps.
"I think that was a bit of a way of getting themselves out of a pickle that they'd created," Copps said Saturday. Heritage Minister James Moore announced on Friday that the gallery would be cancelled.
Moore said none of the proposals submitted by developers in a nationwide competition was acceptable and the government must act prudently in a time of economic instability.
But Copps said she didn't buy that excuse.
She described the competition as "poorly thought-out" and a "no-win" political situation that would pit the losing cities against the government.
This was always about Calgary. It was a sop to Encana, and the ideology of P3's. Encana of course is the company that Gwyn Morgan used to run. Harpers old political/business pal whom he tried to get appointed as the newly created Federal Government Appointments Commissioner after the 2006 election. But that too failed to pass. And like the National Gallery cancellation the post of Appointments Commissioner was never filled.
Until last week when the whole idea was shelved, cause Calgary no longer looked like a shoe in for best P3 deal.
In a scathing editorial in the National Post entitled Portrait of Incompetence it is all made painfully clear. The P3 bid opened up to other cities was a mere fient, the fix was in for Calgary, until Edmonton put in two bids both lower than the Calgary costs.
The thoroughly depressing history of the project has been covered exhaustively -- but here is a capsule summary. Sheila Copps' original 2001 brainwave for a permanent centre at the old U. S. embassy in Ottawa ran headlong into cost overruns, belt-tightening in the national capital district and a new Liberal regime that was none too keen on building an expensive legacy for its leading critic. Paul Martin's government vacillated, and when it was ousted by the Conservatives, they seized upon the opportunity, first engaging in backdoor negotiations to find room for the gallery in downtown Calgary, and then opening the whole thing up to private-public bids from major cities across the country.
Edmonton threw a spanner in the works by coming up with not one but two bids that would have been extremely easy on the public purse; this led to the deadline being quietly extended so that Calgary could improve the terms of its proposed deal. Meanwhile, Ottawa's partisans put on a full-court press, arguing chauvinistically that the right place for a national gallery could not possibly be anywhere but the national capital. These master logicians told an ostensibly pretty story about the Portrait Gallery serving as a locus of educational tours of the capital, but failed ever to mention the real truth -- that in downtown Ottawa the building would probably remain a poor cousin to Parliament Hill, the National Gallery, the Museum of Civilization and other competing sites. The nation's capital Ottawa may be, but not many schools can afford to send children on the week-long field trips that the city perhaps deserves.
And speaking of Shelia Copps she has her own take on this mini-boondoogle.
The decision of Stephen Harper's Conservative government to cancel the National Portrait Gallery was a smart move to get out of a poorly conceived plan to build the museum as a public-private partnership, says former Liberal heritage minister Sheila Copps.
"I think that was a bit of a way of getting themselves out of a pickle that they'd created," Copps said Saturday. Heritage Minister James Moore announced on Friday that the gallery would be cancelled.
Moore said none of the proposals submitted by developers in a nationwide competition was acceptable and the government must act prudently in a time of economic instability.
But Copps said she didn't buy that excuse.
She described the competition as "poorly thought-out" and a "no-win" political situation that would pit the losing cities against the government.
This was always about Calgary. It was a sop to Encana, and the ideology of P3's. Encana of course is the company that Gwyn Morgan used to run. Harpers old political/business pal whom he tried to get appointed as the newly created Federal Government Appointments Commissioner after the 2006 election. But that too failed to pass. And like the National Gallery cancellation the post of Appointments Commissioner was never filled.
Encana was also a victim of the Harpocrites about face on Income Trusts so having the National Gallery in Calgary built by Encana was simply payback.
This was about moving a National Gallery to Calgary to show that political power had shifted west, to the Petro Bay Street of Canada. It was also about selling off the Gallery to Encana. Thus Canada's National Portrait Gallery would have been the Encana National Portrait Gallery of Canada.
The new Conservative government killed that project in 2006 and tried to forge the EnCana deal. When that failed in the face of withering criticism from Ottawans and others, the government resorted to the bidding process. Now cities across the country have spent money preparing bids and $11 million has been wasted renovating the U.S. embassy location. The machinations surrounding the gallery have been a sorry display of government inefficiency and inept politics.
Once again the neo-con ideology of Privatization bites the bullet.
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Wage Controls
Here we go again the recession of the 1970's brought in wage controls under Trudeau. Then again in the ninties with the deficit and debt hysteria public and private sector workers faced assualts on their wages and benefits by provincial NDP and Conservative, and Federal Liberal governments. Now the Harpocrites are suggesting another attack on workers wages. While bailing out the bankers.
Flaherty also said the government is looking at controlling the rate of growth in the salaries of public servants, and is continuing with a strategic review of expenditures at all government departments.
We should not be surprised that Mike Harris's Finance Minister should talk about cutting wages for public sector workers. This was the neo-con aganeda during the ninties, carried out by Harris, Klein and Paul Martin. This is not new thinking, this is reactionary thinking. Attacking workers wages during a crisis of consumer capitalism will further entrench a recession which will then whipsaw into the private sector.
Flaherty says the equalization program itself isn’t threatened but spending growth needs to be controlled. "It’s a federal program, we will limit the growth of the program … it’s not sustainable otherwise," he said, I thought rather gravely.
The problem is, if transfers grow more slowly than inflation, provinces will face shortfalls. So less risky, politically at least, is cutting the civil service.
The Conservatives know there’s a standing constituency for strict control of public spending. And cuts can be doled out in ways that minimize the pain to particular constituencies.
That said, the last round of deep cuts was in the early 1990s, when Paul Martin and Jean Chretien put the brakes on federal transfers to the provinces and hacked away at programs. They cut the civil service and conditioned people to expect public spending cuts as the tactic of choice when times are tough.
While capitalist apologists bemoan any claw back of tax cuts to big business the Harpocrites now are suggesting attacks on workers wages.The reduction in transfer payments and discussions amongst the Premiers with Harper recently shows that the message has also been sent to these levels of government; prepare to roll back wages and benefits to your public sector workers. Anything to avoid a deficit. Class war has been declared by the Harpocrites.
Flaherty also said the government is looking at controlling the rate of growth in the salaries of public servants, and is continuing with a strategic review of expenditures at all government departments.
We should not be surprised that Mike Harris's Finance Minister should talk about cutting wages for public sector workers. This was the neo-con aganeda during the ninties, carried out by Harris, Klein and Paul Martin. This is not new thinking, this is reactionary thinking. Attacking workers wages during a crisis of consumer capitalism will further entrench a recession which will then whipsaw into the private sector.
Flaherty says the equalization program itself isn’t threatened but spending growth needs to be controlled. "It’s a federal program, we will limit the growth of the program … it’s not sustainable otherwise," he said, I thought rather gravely.
The problem is, if transfers grow more slowly than inflation, provinces will face shortfalls. So less risky, politically at least, is cutting the civil service.
The Conservatives know there’s a standing constituency for strict control of public spending. And cuts can be doled out in ways that minimize the pain to particular constituencies.
That said, the last round of deep cuts was in the early 1990s, when Paul Martin and Jean Chretien put the brakes on federal transfers to the provinces and hacked away at programs. They cut the civil service and conditioned people to expect public spending cuts as the tactic of choice when times are tough.
While capitalist apologists bemoan any claw back of tax cuts to big business the Harpocrites now are suggesting attacks on workers wages.The reduction in transfer payments and discussions amongst the Premiers with Harper recently shows that the message has also been sent to these levels of government; prepare to roll back wages and benefits to your public sector workers. Anything to avoid a deficit. Class war has been declared by the Harpocrites.
SEE:
Business Unionism Offers No Solution To Capitalist Crisis
tags
asset-backed commercial paper ,, gold, homes, mortgages, housing, bubble, US, economy, oil prices, sub-prime mortgage, Wall Street, crash, recession,Bernanke, Inflation, Staglation, Stock-Market, US, Federal-Reserve-Chairman, Oil, gold, commoditiesSmoot-Hawley, protectionism, tariffs, Herbert Hoover, U.S., U.S. economy, Canada, Great Depression, market crash, free trade, recession, Harper, Conservatives, deficit, Government, politics, Flaherty, Budget, GST, politicsCanada, Surplus, Economy, Taxes, EI,
UBScandal
As capitalism melts down the rich always find a way to hide their taxable income. In the best of times and the worst of times. If they don't get the tax cuts they demand c'est lavie. They can always hide their money in Swiss bank accounts courtesy of the Gnomes of Zurich.In this case courtesy UBS. As we found with Enron, capitalism breaks down because those who play in the market know that rules are made to be broken and so they break them.
UBS executive indicted in US
UBS executive charged with aiding tax evasion
The Swiss Banker and 'Toxic Waste'
Gee could that have anything to do with this;
Top Executives at UBS Will Not Get Bonuses
Or maybe its actually because of this;
UBS warns earnings will be squeezed for rest of year
After being Europe's first major credit crunch victim, writing down $37.0 billion in the first two quarters of the year, there has been a shift in focus in the concerns that investors have about UBS. Its balance sheet is looking decidedly less frightening, now that it has shifted $60.0 billion of illiquid mortgage-backed securities into a vehicle created by the Swiss national bank, while it managed a profit in the third quarter.
And before we get all warm and fuzzy about those poor bankers UBS will still pay em heaping amounts of gold, just not all at once....
UBS said its new compensation model would be "focused on the long-term" and "closely aligned with the value creation of the firm." Executive board members whose bonuses had depended on annual performance alone will now be paid according to the new system that tracks their performance and the bank's share price over a three-year period. The two variable parts of their compensation--in cash and equity--will both be performance linked and the chairman of the bank will no longer get so-called "variable compensation."
And like that other Republican Investment Banker; Dan Quayle, who works for Cerebeus, lookee here UBS has one in their pocket too.
Phil Gramm: A Deregulator Unswayed
RGE Monitor, NY - , he left Capitol Hill in 2002 to work as an investment banker and lobbyist for UBS, a Swiss bank that has been hard hit by the market downturn,
You remember Phil he advised the McCain campaign until last summer when he called Americans concerned about the meltdown appearing on the horizon a bunch of 'Whiners'.
UBS executive indicted in US
UBS executive charged with aiding tax evasion
The Swiss Banker and 'Toxic Waste'
Gee could that have anything to do with this;
Top Executives at UBS Will Not Get Bonuses
Or maybe its actually because of this;
UBS warns earnings will be squeezed for rest of year
After being Europe's first major credit crunch victim, writing down $37.0 billion in the first two quarters of the year, there has been a shift in focus in the concerns that investors have about UBS. Its balance sheet is looking decidedly less frightening, now that it has shifted $60.0 billion of illiquid mortgage-backed securities into a vehicle created by the Swiss national bank, while it managed a profit in the third quarter.
And before we get all warm and fuzzy about those poor bankers UBS will still pay em heaping amounts of gold, just not all at once....
UBS said its new compensation model would be "focused on the long-term" and "closely aligned with the value creation of the firm." Executive board members whose bonuses had depended on annual performance alone will now be paid according to the new system that tracks their performance and the bank's share price over a three-year period. The two variable parts of their compensation--in cash and equity--will both be performance linked and the chairman of the bank will no longer get so-called "variable compensation."
And like that other Republican Investment Banker; Dan Quayle, who works for Cerebeus, lookee here UBS has one in their pocket too.
Phil Gramm: A Deregulator Unswayed
RGE Monitor, NY - , he left Capitol Hill in 2002 to work as an investment banker and lobbyist for UBS, a Swiss bank that has been hard hit by the market downturn,
You remember Phil he advised the McCain campaign until last summer when he called Americans concerned about the meltdown appearing on the horizon a bunch of 'Whiners'.
Phil Gramm, a former Texas senator who is now vice chairman of UBS, the giant Swiss bank, said he expects Mr. McCain to inherit a sluggish economy if he wins the presidency, weighed down above all by the conviction of many Americans that economic conditions are the worst in two or three decades and that America is in decline.
"You've heard of mental depression; this is a mental recession," he said, noting that growth has held up at about 1 percent despite all the publicity over losing jobs to India, China, illegal immigration, housing and credit problems and record oil prices. "We may have a recession; we haven't had one yet."
"We have sort of become a nation of whiners," he said. "You just hear this constant whining, complaining about a loss of competitiveness, America in decline" despite a major export boom that is the primary reason that growth continues in the economy, he said. "
Now he says the push to deregulate the market had nothing to do with the current meltdown.
<'>The retired Texas senator claims that deregulation “played virtually no role” in the current economic turmoil engulfing the globe, nor the housing collapse or the credit crisis. The exempting of any regulation of derivatives, including state insurance supervision, reserve requirements or clearing information was not significant to the crisis. The nonfeasance of the Fed in supervising all of the non-bank lenders that lay at the heart of the housing boom and bust was not the cause either (it was “Predatory Borrowing”). And the payola scandals at the ratings agencies — Moodies, S&P, and Fitch — that slapped triple AAA ratings on paper that turned out to be junk would not have been prevented via better oversight.
Gramm said placing any blame on deregulation was simply “an emerging myth.”
The whole UBS scandal comes home to Canada where we specialize in White Collar Crime....Corporate Captialist criminals get away with murder in Canada. We have no single national regulator liie the SEC, and clearly our bank laws are not enforced effectively, if UBS can set up a secret offshore account for wealthy Americans called the 'Canada Desk' because the deals were done on Canadian soil.
Top Firm Accused Of Having Illegal 'Secret' Desk
This scandale has caused the Montreal Gazzette to pick up on the popular slogan of the Communist Party of Canada Marxist Lenninist in its latest editorial; Make The Rich Pay.
Government has obligation to make the rich pay, too
Raoul Weil, a senior executive of the Swiss bank UBS, has been indicted by the U.S. Department of Justice on charges of helping his U.S. clients hide some $20 billion in assets from the taxman. Americans will be glad to see their government pursue this sort of case aggressively.
In Canada, however ....
The Globe and Mail reported last week that Weil was also in charge of a secretive team of senior bankers whose job was to help Canadians hide as much as $5.6 billion from the Canada Revenue Agency, this country's tax collector.
So what has that agency, and the rest of the Canadian government, been doing about these allegations, the outlines of which have long been known? Nobody knows. Maybe nothing. And that's not nearly good enough.
Nothing is more corrosive to the sense of fairness and transparency that society needs to function well than the idea that there are two standards - one for the wealthy and one for everyone else
And in light of this scandal this failure to collect what is due the people of Canada or to prosecute UBS for breaking our banking laws, what does the Government and Revenue Canada do? Wait for it....
Ottawa targets online merchants who pay no taxes
Canada Revenue Agency to focus on so-called 'power sellers' on eBay
Pound foolish, pennyt wise.
SEE:
Crime Pays If You Are Rich
Whining and Dining with the Irvings
Now he says the push to deregulate the market had nothing to do with the current meltdown.
<'>The retired Texas senator claims that deregulation “played virtually no role” in the current economic turmoil engulfing the globe, nor the housing collapse or the credit crisis. The exempting of any regulation of derivatives, including state insurance supervision, reserve requirements or clearing information was not significant to the crisis. The nonfeasance of the Fed in supervising all of the non-bank lenders that lay at the heart of the housing boom and bust was not the cause either (it was “Predatory Borrowing”). And the payola scandals at the ratings agencies — Moodies, S&P, and Fitch — that slapped triple AAA ratings on paper that turned out to be junk would not have been prevented via better oversight.
Gramm said placing any blame on deregulation was simply “an emerging myth.”
The whole UBS scandal comes home to Canada where we specialize in White Collar Crime....Corporate Captialist criminals get away with murder in Canada. We have no single national regulator liie the SEC, and clearly our bank laws are not enforced effectively, if UBS can set up a secret offshore account for wealthy Americans called the 'Canada Desk' because the deals were done on Canadian soil.
Top Firm Accused Of Having Illegal 'Secret' Desk
This scandale has caused the Montreal Gazzette to pick up on the popular slogan of the Communist Party of Canada Marxist Lenninist in its latest editorial; Make The Rich Pay.
Government has obligation to make the rich pay, too
Raoul Weil, a senior executive of the Swiss bank UBS, has been indicted by the U.S. Department of Justice on charges of helping his U.S. clients hide some $20 billion in assets from the taxman. Americans will be glad to see their government pursue this sort of case aggressively.
In Canada, however ....
The Globe and Mail reported last week that Weil was also in charge of a secretive team of senior bankers whose job was to help Canadians hide as much as $5.6 billion from the Canada Revenue Agency, this country's tax collector.
So what has that agency, and the rest of the Canadian government, been doing about these allegations, the outlines of which have long been known? Nobody knows. Maybe nothing. And that's not nearly good enough.
Nothing is more corrosive to the sense of fairness and transparency that society needs to function well than the idea that there are two standards - one for the wealthy and one for everyone else
And in light of this scandal this failure to collect what is due the people of Canada or to prosecute UBS for breaking our banking laws, what does the Government and Revenue Canada do? Wait for it....
Ottawa targets online merchants who pay no taxes
Canada Revenue Agency to focus on so-called 'power sellers' on eBay
Pound foolish, pennyt wise.
SEE:
Crime Pays If You Are Rich
Whining and Dining with the Irvings
Hedge Funds, Junk Bonds, Ponzi Schemes
Criminal Capitalism Business As Usual
Tax Cuts For All
Find blog posts, photos, events and more off-site about:
CEO, pay, golden parachutes, Corporations, fatcats, rich, super rich, America,hedge funds, ponzi, risk, capitalism, bubble, Junk bonds,criminology, corporate-crime, white-collar-crime, sociology, hedge funds, scandal, criminal-capitalism, Raoul Weil, UBS, tax evasion,
Find blog posts, photos, events and more off-site about:
CEO, pay, golden parachutes, Corporations, fatcats, rich, super rich, America,hedge funds, ponzi, risk, capitalism, bubble, Junk bonds,criminology, corporate-crime, white-collar-crime, sociology, hedge funds, scandal, criminal-capitalism, Raoul Weil, UBS, tax evasion,
Auto Solution
In the U.S. the debate over the failure of the big three automakers has devolved into an argument over bail-out or bankruptcy. As usual the Republicans arguing in favour of bankruptcy and opposing a bail out claim that part of the Big Three's failure is the high cost of production. They attack the UAW for being part of the problem with their retiree pension plans, healthcare costs and wage demands.
Make union pay cuts mandatory for auto aid
They claim that that Toyota and other import car manufactureres in the U.S. can produce cars cheaper then America's own. Well that is true. However the elephant in the room in this debate is the fact where Toyota and other import auto manufacturers set up shop is in Right To Work States, states which use right to work laws to ban unions.
As for Health Care costs this is the other elephant, in Canada and around the world the government provides health care except in two countries America and China. In the US the healthcare cost is a burden born by business and labour.
So what would a solution be do ya think? Hmm how about passing the the proposed first union contract law that was pending in the Senate; Employee Free Choice Act. You know the one that in the last days of the Presidential campaign became an issue for McCain.
And instead of either Clinton's of Obama's weak tea HealthCare reform, a universal healthcare program was adopted in the U.S. like it is in Canada.
Unionization of Toyota and other import car companies American workers would level the playing field as would creating a universal healthcare program.
While these would go a long way to really changing the auto industry in North America the only real solution is nationalization the auto industry under workers control. Something no one is talking about, including the UAW and CAW.
CAW President Ken Lewenza said the failure of even one of those companies would be a "devastating blow to the economy, a devastating blow to consumers out there and quite frankly devastating to our members."
Ontario, especially, would suffer, he told CTV Newsnet.
"It's not even imaginable what would happen in communities like Oshawa, Windsor, St. Catharines, Oakville. These communities are dominated by the auto industry."
Lewenza said the union has done its part to respond to the Detroit Three's shrinking market share, giving up hundreds of millions of dollars in concessions in collective bargaining.
However, Lewenza didn't blame management either, saying "nobody anticipated at the beginning of this business year we would be selling 12 to 13 million vehicles in the United States, when most people were anticipating 16 or 17."
Oh come on now quit apologizing for your bosses incompetence. What part of Climate Crisis did you miss? I mean for christ sakes the NDP proposes a Green Vehicle plan three years ago and what does CAW get fromall its politcal pull and lobbying? An investment in GM by the Ontario Government for a Camaro plant. Is that counter intuitive or what.
If we are going to produce green vehicles then it will take a complete restructuring of the industry based not on concession bargaining but on workers control and workers ownership.
SEE:
Whiners and Losers
Business Unionism Offers No Solution To Capitalist Crisis
Concessions Don't Work
And Then There Was One
October Surprise Was The Market Crash
No Austrians In Foxholes
Pension Rip Off
tags
MGuinty, GM, concesssion bargaining, unions, trade union, Marx, Ontario, Corporate Welfare, Canada, cars, automobilie, production, taxes, taxcredit, investment, environment, hybrid, self-valorization,, self-management,, workers control,, autoworkers,, Buzz Hargrove,,CAW, Big Three Auto,, libertarian socialism, automobile, Frank Stronach, Magna, business unions, auto parts, workers, layoffs, plant-closings, workers-control, unions, labour, Canada
Make union pay cuts mandatory for auto aid
They claim that that Toyota and other import car manufactureres in the U.S. can produce cars cheaper then America's own. Well that is true. However the elephant in the room in this debate is the fact where Toyota and other import auto manufacturers set up shop is in Right To Work States, states which use right to work laws to ban unions.
As for Health Care costs this is the other elephant, in Canada and around the world the government provides health care except in two countries America and China. In the US the healthcare cost is a burden born by business and labour.
So what would a solution be do ya think? Hmm how about passing the the proposed first union contract law that was pending in the Senate; Employee Free Choice Act. You know the one that in the last days of the Presidential campaign became an issue for McCain.
And instead of either Clinton's of Obama's weak tea HealthCare reform, a universal healthcare program was adopted in the U.S. like it is in Canada.
Unionization of Toyota and other import car companies American workers would level the playing field as would creating a universal healthcare program.
While these would go a long way to really changing the auto industry in North America the only real solution is nationalization the auto industry under workers control. Something no one is talking about, including the UAW and CAW.
CAW President Ken Lewenza said the failure of even one of those companies would be a "devastating blow to the economy, a devastating blow to consumers out there and quite frankly devastating to our members."
Ontario, especially, would suffer, he told CTV Newsnet.
"It's not even imaginable what would happen in communities like Oshawa, Windsor, St. Catharines, Oakville. These communities are dominated by the auto industry."
Lewenza said the union has done its part to respond to the Detroit Three's shrinking market share, giving up hundreds of millions of dollars in concessions in collective bargaining.
However, Lewenza didn't blame management either, saying "nobody anticipated at the beginning of this business year we would be selling 12 to 13 million vehicles in the United States, when most people were anticipating 16 or 17."
Oh come on now quit apologizing for your bosses incompetence. What part of Climate Crisis did you miss? I mean for christ sakes the NDP proposes a Green Vehicle plan three years ago and what does CAW get fromall its politcal pull and lobbying? An investment in GM by the Ontario Government for a Camaro plant. Is that counter intuitive or what.
If we are going to produce green vehicles then it will take a complete restructuring of the industry based not on concession bargaining but on workers control and workers ownership.
SEE:
Whiners and Losers
Business Unionism Offers No Solution To Capitalist Crisis
Concessions Don't Work
And Then There Was One
October Surprise Was The Market Crash
No Austrians In Foxholes
Pension Rip Off
tags
MGuinty, GM, concesssion bargaining, unions, trade union, Marx, Ontario, Corporate Welfare, Canada, cars, automobilie, production, taxes, taxcredit, investment, environment, hybrid, self-valorization,, self-management,, workers control,, autoworkers,, Buzz Hargrove,,CAW, Big Three Auto,, libertarian socialism, automobile, Frank Stronach, Magna, business unions, auto parts, workers, layoffs, plant-closings, workers-control, unions, labour, Canada
Saturday, November 15, 2008
Not So Good News
In another parallel from the Great Depression comes this article in the Toronto Star on the International Conference on the Capitalist Crisis that occurerd in 1933 after the election of FDR. The conference was a failure as America wrapped itself in the cloak of isolationism and protectionism.Experts say the efforts in London in 1933 collapsed in part on the spasms of isms – the tangled web of conceits driving the dying days of British imperialism, post-crash American capitalism, Stalin's iron-fisted communism and, in Germany, the newly installed fascism of Adolf Hitler. That, and a very intense hangover from the Great War. "The good news for today is that what the world faced then was so much worse. In terms of debt defaults, it was about three times the size of the crisis today, and almost all of it stemming from the bills owed from the First World War," said Albrecht Ritschl, a London School of Economics historian.
Good news? Ah excuse me did we miss the trillions of debt incurred in the failed wars in Afghanistan and Iraq? Debt that caused this crisis just as it created the post WWI crisis.
And we still the world political economy divided up amongst various styles of state capitalist regimes, including the US Military Industrial Complex.
Yes the parallels are striking, and all those right wing neo-cons and stock market pundits in the media keep saying they didn't see this coming. Because of course they had their rose coloured ideological blinders on.
SEE:
FDR and the origins of State Capitalism
Huh?
Last One Out Turn Off The Lights
Whiners and Losers
Super Bubble Burst
October Surprise Was The Market Crash
No Austrians In Foxholes
Pension Rip Off
CRASH
The Return Of Hawley—Smoot
Canadian Banks and The Great Depression
U.S. Economy Entering Twilight Zone
Neo-Liberal State Capitalism In Asia
State Capitalism in the USSR
China: The Truimph of State Capitalism
US vs China for Global Hegemony
Tags recession,
socialism,
capitalism,George W. Bush,asset-backed commercial paper ,, goldhomes, mortgages, FDR, bubble, US, economy, 1933, sub-prime mortgage, Wall Street, crash, recession,Bernanke, Inflation, Staglation, Stock-Market, US, Federal-Reserve-Chairman, Oil, gold, commoditiesSmoot-Hawley, protectionism, tariffs, Herbert Hoover, U.S., U.S. economy, Canada, Great Depression, market crash, free trade, Republicans, recession,
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