Thursday, April 29, 2010

6 banks control wealth equivelant to 60% of US GNP

Goldman Sachs, JPMorgan Chase, Morgan Stanley, Wells Fargo , Citigroup, and Bank of America.

Is the U.S. at the Mercy of an Unstoppable Oligarchy?
Do humans breath air?

Bill Moyers: And you write that they control 60 percent of our gross national product?

James Kwak: They have assets equivalent to 60 percent of our gross national product. And to put this in perspective, in the mid-1990s, these six banks or their predecessors, since there have been a lot of mergers, had less than 20 percent. Their assets were less than 20 percent of the gross national product.

Bill Moyers:
And what's the threat from an oligarchy of this size and scale?

Simon Johnson: They can distort the system, Bill. They can change the rules of the game to favor themselves. And unfortunately, the way it works in modern finance is when the rules favor you, you go out and you take a lot of risk. And you blow up from time to time, because it's not your problem. When it blows up, it's the taxpayer and it's the government that has to sort it out.

Bill Moyers:
So, you're not kidding when you say it's an oligarchy?

James Kwak: Exactly. I think that in particular, we can see how the oligarchy has actually become more powerful in the last since the financial crisis. If we look at the way they've behaved in Washington. For example, they've been spending more than $1 million per day lobbying Congress and fighting financial reform. I think that's for some time, the financial sector got its way in Washington through the power of ideology, through the power of persuasion. And in the last year and a half, we've seen the gloves come off. They are fighting as hard as they can to stop reform.

Personally, IMHO, the bail-outs were intended to empower, enrich and grow the big banks.
Nice to see a bit of main stream coverage on the tyranny of the banks.

3 comments:

  1. There's disinfo mixed in with this, Penny. The sort that pops up with Moyers is usually pretty subtle. For instance:-

    Simon Johnson: They can distort the system, Bill. They can change the rules of the game to favor themselves. (There's no distortion going on. The bankers designed and run the system. Simon? Hello-oh?) And unfortunately, the way it works in modern finance is when the rules favor you (see above), you go out and you take a lot of risk.(There's no risk, Simon. See you're own following comments) And you blow up from time to time, because it's not your problem. When it blows up, it's the taxpayer and it's the government that has to sort it out.( Say the words, Simon. Say the words - "so the government should design and run its own system"!)

    James Kwak:(unfortunate name!) Exactly. I think that in particular, we can see how the oligarchy has actually become more powerful in the last since the financial crisis. (The oligarchy has always had all the power because it's their system. The just haven't exercised it all) If we look at the way they've behaved in Washington. For example, they've been spending more than $1 million per day lobbying Congress and fighting financial reform. I think that's for some time, the financial sector got its way in Washington through the power of ideology, through the power of persuasion. (Ideology, my fat aunt. It's the power of greed and those pics of them with kiddies) And in the last year and a half, we've seen the gloves come off. (It's just out in the open now. That's all that's changed here) They are fighting as hard as they can to stop reform.

    Here's the disinfo bottom line - reform. The system does not need reform nor can it ever be reformed because it is the bankers system and therefore impossible. But that is the illusion that is being presented to provide for some window dressing to go on and thus allow the bankers system to roll on to everyone else's cost.

    These three, Bill Moyers, James Kwak and Simon Johnson are all acting as mouthpieces for the bankers.

    ReplyDelete
  2. Thanks for pointing that out.
    I admit to missing the subtlety of the disinfo.

    I was just amazed to see the mere mention of 6 banks controlling that much wealth.

    ReplyDelete
  3. The figure is a bit misleading and intended to sensationalize and intentionally so, I think, Penny.
    It makes it sound like they own 60% of America's wealth. But no. Their wealth is equivalent to 60% of the GDP which is the new wealth (production) created in one year. This is a long way from the total value of all the accrued wealth (assets) in America.

    The bullshit from the 'left' is far more insidious than from the right, imnho. Witness Obummer vs Bush.

    ReplyDelete

TROLLS & SPAM WILL BE DELETED WITHOUT HESITATION
KEEP IT RELEVANT. NO PERSONAL ATTACKS