Wednesday, November 16, 2016

Today's links

1--Steve Bannon could be Wall Street's worst enemy

In a presentation Steve Bannon gave during a conference at the Vatican in 2014, the Trump confidant ripped into big banks and their role in the 2008 financial crisis. He rued that no one ever was held accountable, which he said helped fuel populist fury and groups like the tea party, according to a transcript of his remarks that Buzzfeed published Wednesday.


Bannon ultimately would take the reins of the Trump campaign and will be the White House chief strategist when Trump is sworn in Jan. 20

Bannon: "Capitalism metastasized" and burdens were put on working people who get no upside

More: " think about it — not one criminal charge has ever been brought to any bank executive associated with 2008 crisis. And in fact, it gets worse. No bonuses and none of their equity was taken. So part of the prime drivers of the wealth that they took in the 15 years leading up to the crisis was not hit at all, and I think that's one of the fuels of this populist revolt that we're seeing as the tea party. So I think there are many, many measures, particularly about getting the banks on better footing, making them address all the liquid assets they have. I think you need a real cleanup of the banks balance sheets," said Bannon.

Bannon advocated breaking up the financial supermarkets during his Vatican speech:

In addition, I think you really need to go back and make banks do what they do: Commercial banks lend money, and investment banks invest in entrepreneurs and to get away from this trading — you know, the hedge fund securitization, which they've all become basically trading operations and securitizations and not put capital back and really grow businesses and to grow the economy.

Big bankers and hedge funds, he said, "have never really been held accountable for what they did [and that] has fueled much of the anger in the tea party movement in the United States

2--Saudis, China Dump Treasuries; Foreign Central Banks Liquidate A Record $375 Billion In US Paper

3--Muslim-Hating Conspiracy Theorist Frank Gaffney May (or May Not) Be Advising Trump’s Transition Team

4--Trump’s Slim Chance for Greatness

Indeed, the little-recognized Israeli-Saudi alliance targeting the so-called “Shiite crescent” – Hezbollah in Lebanon, Syrian President Bashar al-Assad, and Iran – is at the heart of what has been driving U.S. policy in the Middle East since the 1990s.

And, if President-elect Trump wants to truly reverse the downward spiral of the United States as it has squandered trillions of dollars in futile Mideast wars, he will have to go up against the Israeli-Saudi tandem and make it clear that he will not be manipulated as Obama was.


5--New administration will be willing to alter American policy – Trump adviser Woolsey to RT


6--This Is How Steve Bannon Sees The Entire World


I’m not an expert in this, but it seems that they have had some aspects that may be anti-Semitic or racial. By the way, even in the tea party, we have a broad movement like this, and we’ve been criticized, and they try to make the tea party as being racist, etc., which it’s not. But there’s always elements who turn up at these things, whether it’s militia guys or whatever. Some that are fringe organizations. My point is that over time it all gets kind of washed out, right? People understand what pulls them together, and the people on the margins I think get marginalized more and more....

One of the committees in Congress said to the Justice Department, 35 [bank] executives, I believe, that they should have criminal indictments against — not one of those has ever been followed up on.” 

Bannon: That’s a great question. The 2008 crisis, I think the financial crisis — which, by the way, I don’t think we’ve come through — is really driven I believe by the greed, much of it driven by the greed of the investment banks. My old firm, Goldman Sachs — traditionally the best banks are leveraged 8:1. When we had the financial crisis in 2008, the investment banks were leveraged 35:1. Those rules had specifically been changed by a guy named Hank Paulson. He was secretary of Treasury. As chairman of Goldman Sachs, he had gone to Washington years before and asked for those changes. That made the banks not really investment banks, but made them hedge funds — and highly susceptible to changes in liquidity. And so the crisis of 2008 was, quite frankly, really never recovered from in the United States. It’s one of the reasons last quarter you saw 2.9% negative growth in a quarter. So the United States economy is in very, very tough shape.

And one of the reasons is that we’ve never really gone and dug down and sorted through the problems of 2008. Particularly the fact — think about it — not one criminal charge has ever been brought to any bank executive associated with 2008 crisis. And in fact, it gets worse. No bonuses and none of their equity was taken. So part of the prime drivers of the wealth that they took in the 15 years leading up to the crisis was not hit at all, and I think that’s one of the fuels of this populist revolt that we’re seeing as the tea party. So I think there are many, many measures, particularly about getting the banks on better footing, making them address all the liquid assets they have. I think you need a real clean-up of the banks balance sheets....

In addition, I think you really need to go back and make banks do what they do: Commercial banks lend money, and investment banks invest in entrepreneurs and to get away from this trading — you know, the hedge fund securitization, which they’ve all become basically trading operations and securitizations and not put capital back and really grow businesses and to grow the economy. So I think it’s a whole area that just — and I will tell you, the underpinning of this populist revolt is the financial crisis of 2008. That revolt, the way that it was dealt with, the way that the people who ran the banks and ran the hedge funds have never really been held accountable for what they did, has fueled much of the anger in the tea party movement in the United States......

The tea party in the United States’ biggest fight is with the the Republican establishment, which is really a collection of crony capitalists that feel that they have a different set of rules of how they’re going to comport themselves and how they’re going to run things. And, quite frankly, it’s the reason that the United States’ financial situation is so dire, particularly our balance sheet. We have virtually a hundred trillion dollars of unfunded liabilities. That is all because you’ve had this kind of crony capitalism in Washington, DC. The rise of Breitbart is directly tied to being the voice of that center-right opposition. And, quite frankly, we’re winning many, many victories.....

The central thing that binds that all together is a center-right populist movement of really the middle class, the working men and women in the world who are just tired of being dictated to by what we call the party of Davos. A group of kind of — we’re not conspiracy-theory guys, but there’s certainly — and I could see this when I worked at Goldman Sachs — there are people in New York that feel closer to people in London and in Berlin than they do to people in Kansas and in Colorado, and they have more of this elite mentality that they’re going to dictate to everybody how the world’s going to be run.
I will tell you that the working men and women of Europe and Asia and the United States and Latin America don’t believe that. They believe they know what’s best for how they will comport their lives. They think they know best about how to raise their families and how to educate their families. So I think you’re seeing a global reaction to centralized government, whether that government is in Beijing or that government is in Washington, DC, or that government is in Brussels. So we are the platform for the voice of that...

And you’re seeing that whether that was UKIP and Nigel Farage in the United Kingdom, whether it’s these groups in the Low Countries in Europe, whether it’s in France, there’s a new tea party in Germany. The theme is all the same. And the theme is middle-class and working-class people — they’re saying, “Hey, I’m working harder than I’ve ever worked. I’m getting less benefits than I’m ever getting through this, I’m incurring less wealth myself, and I’m seeing a system of fat cats who say they’re conservative and say they back capitalist principles, but all they’re doing is binding with corporatists.” Right? Corporatists, to garner all the benefits for themselves.


“I come from a blue-collar, Irish Catholic, pro-Kennedy, pro-union family of Democrats,” Bannon told Bloomberg. “I wasn’t political until I got into the service and saw how badly Jimmy Carter f---ed things up. I became a huge Reagan admirer. Still am. But what turned me against the whole establishment was coming back from running companies in Asia in 2008 and seeing that Bush had f---ed up as badly as Carter. The whole country was a disaster.”


7--Yellen takes hot seat in middle of first congressional debate on Trump stimulus


"I think it's going to be a lot of battling. … Donald Trump wins the election and all of a sudden interest rates start to go higher, and people think the economy is going to get better," Clifton said. "…The market is starting to like this and she's going to be caught up in questions about why this is happening

No comments:

Post a Comment