Just like Exxon’s no fly zone over the Mayflower pipeline spill was established to hide the truth; so has Wall Street propaganda established a no fly zone to control the truth about the continuing financial rape of America. And there have been no indictments for the culprits leading up to the 2008 financial implosion and the continuing fabrication of leverage too big to explain, from all the too big to fail banks.
Exxon is controlling the flow of information about the spill.
As bad as oil spills are they are rabbit droppings compared with what could happen if $700 trillion to $1.2 quadrillion derivatives suddenly get out of control, like the unanticipated break in a 65 year old pipeline.
Exxon’s no fly zone should be replaced with a real no fly zone over Wall Street established by regulators and the American public to shoot down all the leverage being fabricated by the Street that could cause an H-bomb sized financial plague.
There is a new pipeline on the horizon that environmentalists and a host of Americans do not believe is necessary as well as potentially harmful. Arguments are advanced that this will create 10,000 jobs, but how temporary and at what risk to our environment, not just from the pipeline, but also in the dirty and dangerous way the oil is extracted from the shale. And where is big oil investing in alternative energy sources that could create far more jobs in a critically necessary new industry devoted to clean and renewable energy?
Big oil is behind running up the cost of a barrel of oil to have made it worthwhile to extract oil from shale, and behind all the fracking that Big oil assures us is great. Just like we were assured that oil rigs in the ocean created a new home for fish, sort of like a reef. Remember the pictures of all the happy fish, or do you remember all the dead oil suffocated ones washed up on oily shores?
Big oil is on the same page as big financial innovation. Both are run by sociopathic greedy narcissists with no concern for the impact of how they profit from extracting energy from the globe; or how they contrive financial leverage to extract investments in virtual reality computer markets in lieu of creating real investments which will lead to long term capital formation.
In case you don’t remember the great Alan Greenspan on financial innovation – from How We Got Swindled: chapter 10 “Too Complex to Explain” Financial Instruments: Derivatives, CDOs, CMOs, Swaps, and Rancid Tranches – Pools of Worse than Junk Bond Debt:
“By far the most significant event in finance during the past decade had been the extraordinary development and expansion of financial derivatives. These instruments enhance the ability to differentiate risk and allocate it to those investors most able and willing to take it – a process that has undoubtedly improved national productivity growth and standards of living.”
“Alan Greenspan, Chairman, Board of Governors of the US Federal Reserve System, April 2005, and Genius. Who was the recipient of lots of outside income as a consultant to Investment Banks and Mega Banks, and leader in the fight against regulations! Greenspan’s 2005 inscription in granite, like a commandment from God to Moses, came back into focus, for those of us who remember when all the financial markets fell apart only three years later. Did Greenspan, or any…”
Americans are better at emoting over tangible tragedy than intellectually recognizing hand writing on the wall – or outright lies from heavily credentialed liars like Greenspan. Advertising from either Big oil or Wall Street Trojan (too big to fail) Mega Banks relies on propaganda to shape what Americans think rather that illuminate the truth. Think how BP is bringing the Gulf Coast back, and how Goldman has a small business round table. Isn’t this a cozy group.
The world has a growing need for energy – pipelines carrying oil extracted from shale and tearing down rain forests will not provide a viable future. With 46% of Americans who are self-confessed creationists, and with the rest of the globe following this idiocy – the globe is in trouble long term. The energy policies around the globe, and of course, in America are controlled by some of the greediest sociopathic narcissists in all of history. Just like all the financial world wide leverage.
The handwriting is on the wall. Most people know the danger of leverage. Look at all the foreclosed houses and the banks pondering short sales until the deferred maintenance craters any value left. I bet some houses were even foreclosed that Teaparty Koch-pawns and Idiots Gone Wild thought they owned. They forgot the banks owned the houses; or did the trenches of subprime debt own them; or the pools of investor funds that bought the AAA rated, worse than junk bond debt; or when there was only forged paper work – who knows? However, people know that too much leverage – debt – leads to no good.
So what about all the derivatives with no foundational value? But this is a good topic for tomorrow. Today we are concerned for what happens when a pipeline spews tar sand oil over a suburban neighborhood in Arkansas. But not enough to raise a unified outcry against a new pipeline so oil companies can continue to ignore their responsibility to invest in alternative energy sources, which would create far more jobs and a far more secure future with a far better environment over the long term.
Short term is what counts. Let’s pretend that the world, or is it just the Earth, was created 5,000 years ago and at the same time let’s pretend that all the too complex to explain financial leverage will not cause a financial earthquake. Oh, almost forgot, let’s pretend that pipelines create more jobs than investing in renewable energy and that it is OK to continue to give subsidies to the Oil Companies because they are doing such a great job of telling the truth, like we should applaud them for restoring the Gulf coast.
We are Americans and good at pretending that the public good is for we the people – when it seems that the public good is for sociopathic greed; or why does the government not tell Exon to shove it, and then in the same breath include Wall Street Banks.
If the comparison between the broken pipeline and our broken system of regulating greed seems hard to follow – it is all about sociopathic greed and the lack of will to do anything meaningful about it. Americans need to focus on all the leverage at the same time they focus so much energy on a new pipeline. Proportionate concern is the controlling issue based on the size of the potential danger.
Denial and avoidance of $700 trillion to $1.2 quadrillion swap derivatives is to avoid the handwriting on the wall. It’s time to fix Big Oil, but don’t forget about Big Wall Street Banks.
Buy my book from Amazon, about which David Satterfield, former Business Editor of the Miami Herald and two times Pulitzer Prize Winner, said this:
“This should be must-reading for every policy maker in Washington and every student of economics and finance.”