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Posts Tagged ‘ALAN GREENSPAN’

LOAN-TEST CEOS LIKE WELFARE APPLICANTS: PART TWO (END)

In Bureaucracy, Business, History, Law, Politics, Social commentary on April 4, 2018 at 1:26 am

Robert Benmosche, the CEO of American International Group (AIG) had some blunt advice to college graduates searching for work.

“You have to accept the hand that’s been dealt you in life,” Benmosche said in a 2013 interview on Bloomberg Television. “Don’t cry about it. Deal with it.”

As is typical of one-percenters, Benmosche blamed willing-to-work college graduates for the refusal of rich employers to offer jobs instead of excuses.

AIG’s way of “accepting the hand that’s been dealt you in life” was to go crying to the Federal Government for a bailout loan—which eventually ballooned to $182 billion.

If college graduates should “deal with” the hardships of finding a responsible, hiring-inclined employer with a stiff upper lip, as Benmosche advised, the same advice should work wonders on greed-fueled CEOs.

Greed-test CEOs for future government loans.

After all, drug-testing welfare recipients has become the new mantra for Republicans.

Some bills have even targeted people who seek unemployment insurance and food stamps, despite scanty evidence that the poor and jobless are disproportionately on drugs.

The concept of background screening is actually sound. But Republicans are aiming it at the wrong end of the economic spectrum.

Since 2008, the government has handed out billions of dollars in bailouts to CEOs of the wealthiest corporations in the country.

The reason: To rescue the economy from the calamity produced by the criminal greed and recklessness of those same corporations.

In 2008, Alan Greenspan, the former chairman of the Federal Reserve, testified before Congress about the origins of the Wall Street “meltdown.”

He admitted that he was “shocked” at the breakdown in U.S. credit markets and said he was “partially” wrong to resist regulation of some securities.

“Those of us who have looked to the self-interest of lending institutions to protect shareholder’s equity—myself especially—are in a state of shocked disbelief,” said Greenspan, who had ruled the Fed from 1987 to 2006. 

Related image 

Alan Greenspan

As a disciple of the right-wing philosopher, Ayan Rand, Greenspan had fiercely held to her belief that “The Market” was a divine institution. As such, “it” alone knew what was best for the nation’s economic prosperity.

“Enlightened self-interest,” he believed, would guarantee that those who dedicated their lives to making money would not allow mere greed to steer them—and the country—into disaster.

As he saw it, any attempt to regulate greed-based appetites could only harm that divine institution.

This had been the prevailing attitude among businessmen prior to the 1929 Wall Street crash that brought on the Great Depression. It proved wrong then.

And it proved wrong for Greenspan—and the country—in 2008. And the nation will be literally paying for such misguided confidence in profit-addicted men for decades to come.

So if Republicans want to protect the “poor, oppressed taxpayer,” they should demand background investigations for those whose addiction truly threatens the economic future of this country.

That is: The men (and occasionally women) who run the nation’s most important financial institutions, such as banks, insurance and mortgage companies.

Thus, in the future, all CEOs—and their families and topmost executives—of financial institutions seeking Federal bailouts should be required to:

  • Undergo “full field investigations” by the FBI and IRS.
  • Submit full financial disclosure forms concerning not only themselves but all members of their immediate families.
  • Be subject to Federal prosecution for perjury if they provide false information or conceal evidence of criminal violations.
  • Periodically submit themselves for additional background investigation.
  • Be subject to arrest, indictment and prosecution if the background investigation turns up evidence of criminal activity.

Related image

In addition:

  • If a bailout-seeking financial institution refuses to comply with these criteria, it should be refused the loan.
  • If a CEO and/or other top officials are judged ineligible for a loan, the company should be asked to replace those executives with others who might qualify.
  • Those alternative executives should be subject to the same background investigation requirements as just outlined.
  • If the institution refuses to replace those executives found ineligible, the Government should refuse the loan.
  • If the Government is forced to take over a troubled financial institution, its CEO and top executives should be replaced with applicants who have passed the required security screening.

The United States has a long and embarrassing history in worshiping wealth for its own sake. Part of this can be traced to the old Calvinistic doctrine that wealth is a proof of salvation, since it shows evidence of God’s favor.

“The man who builds a factory,” eulogized President Calvin Coolidge, “builds a temple. And the man who works there, worships there.”

Another reason for this worship of mammon is the belief that someone who is wealthy is automatically endowed with wisdom and integrity. If that were true, Mafia bosses would be the moral equivalent of Saint Augustine.

Following these beliefs to their ultimate conclusion will transform the United States into a plutocracy—a government of the wealthy, by the wealthy, for the wealthy.

Every day—from President Donald Trump on down—we see fresh evidence of the destruction wrought by the unchecked greed of wealthy, powerful men.

When they—and their paid shills in Congress—demand, “De-regulate business,” it’s essential to remember what this really means.

It means: “Let criminals be criminals.”

LOAN-TEST CEOS LIKE WELFARE APPLICANTS: PART ONE (OF TWO)

In Bureaucracy, Business, History, Law, Politics, Social commentary on April 3, 2018 at 12:13 am

The late Robert Benmosche, then CEO of American International Group (AIG), had some blunt advice to college graduates searching for work in a tight job market.

Robert Benmosche

“You have to accept the hand that’s been dealt you in life,” Benmosche said in a 2013 interview on Bloomberg Television. “Don’t cry about it. Deal with it.”

Typical advice from a one-percenter whose company, AIG, suffered a liquidity crisis when its credit ratings were downgraded below “AA” levels in September, 2008.

So how did AIG “deal with” its own crisis?  It went crying to its Uncle Sugar, the United States Government, for a bailout.

Which it promptly got.

The United States Federal Reserve Bank, on September 16, 2008, made an $85 billion loan to AIG to meet increased collateral obligations resulting from its credit rating downgrade–and thus saving it from certain bankruptcy.

In return, the Government took an 80% stake in the firm.

(The bailout eventually ballooned to $182 billion in exchange for a 92% stake.)

College graduates, said Benmosche, needed to seize the opportunities that become available to them, even if their options are limited.

“They want me to talk to the students and give them a sense of encouragement, especially with the high unemployment,” said Benmosche.

“My advice will be, ‘Whatever opportunity comes your way, take it. Take it and treat it as if it’s the only one that’s coming your way, because that actually may be the truth.’” 

Yes, if you have the opportunity to cry yourself into a multi-billion dollar loan from the Federal Government, by all means, do so.

Of course, willing-to-work college graduates who can’t find willing-to-hire employers won’t be able to count on a generous bailout from the Federal Government.

To which most of them will owe hundreds of thousands of dollars in student loans.

It’s long past time to apply to “untouchable” CEOs like Robert Benmosche the same criteria that Right-wing Republicans demand be applied to welfare recipients.

Republican lawmakers have vigorously pursued welfare drug-testing in Congress and more than 30 states.

Some bills have even targeted people who claim unemployment insurance and food stamps, despite scanty evidence the poor and jobless are disproportionately on drugs.

The concept of background screening is actually sound. But Republicans are aiming it at the wrong end of the economic spectrum.

Since 2008, the government has handed out billions of dollars in bailouts to the wealthiest corporations in the country.

The reason: To rescue the economy from the calamity produced by the criminal greed and recklessness of those same corporations.

For example:

  • The Troubled Asset Relief Program (TARP) has invested $118.5 billion in restoring liquidity to the financial markets.
  • Federal Reserve rescue efforts: $1.5 trillion invested.
  • Federal stimulus programs designed to save or create jobs and jumpstart the economy from recession. $577.8 billion invested.
  • American International Group: Multifaceted bailout to help insurers through restructuring, minimize the need to post collateral and get rid of toxic assets. $127.4 billion invested.
  • FDIC bank takeovers: Cost to FDIC fund that insures losses depositors suffer when a bank fails. $45.4 billion invested.
  • Other financial initiatives designed to rescue the financial sector. $366.4 billion invested.
  • Other housing initiatives designed to rescue the housing market and prevent foreclosures. $130.6 billion invested.

According to the Special Inspector General for the TARP bailout, the total commitment of government is $16.8 trillion dollars with the $4.6 trillion already paid out. 

And it’s equally important to remember that welfare recipients did not:

  • Hold CEO positions at any of the banks so far bailed out;
  • Run such insurance companies as American International Group (AIG);
  • Administer the Federal Home Loan Mortgage Corporation, known as Freddie Mac;
  • Command the Federal National Mortgage Association, known as Fannie Mae.

The 2010 documentary Inside Job chronicles the events leading to the 2008 global financial crisis. One of its most insightful moments occurs at a party held by then-Treasury Secretary Henry Paulson.

“We can’t control our greed,” the CEO of a large bank admits to his fellow guests. “You should regulate us more.”

Greed is defined as an excessive desire for wealth or goods. At its worst, greed trumps rationality, judgment and concern about the damage it may cause.

Greed begins in the neurochemistry of the brain. A neurotransmitter called dopamine fuels our greed. The higher the dopamine levels in the brain, the greater the pleasure we experience.

Cocaine, for example, directly increases dopamine levels. So does money.

Harvard researcher Hans Breiter has found, via magnetic resonance imaging studies, that the craving for money activates the same regions of the brain as the lust for sex, cocaine or any other pleasure-inducer.

Dopamine is most reliably activated by an experience we haven’t had before. We crave recreating that experience.

But snorting the same amount of cocaine, or earning the same sum of money, does not cause dopamine levels to increase. So the pleasure-seeker must increase the amount of stimuli to keep enjoying the euphoria.

In time, this incessant craving for pleasure becomes an addiction. And feeding that addiction–-with ever more money–becomes the overriding goal.

Thus, the infamous line—”Greed is good”—in the 1987 film, Wall Street, turns out to be both false and deadly for all concerned. 

But the situation need not remain this way.

HOW TO BE A SMARTER EXECUTIVE

In Bureaucracy, Business, History, Self-Help on March 13, 2015 at 12:08 am

“The man who builds a factory,” said President Calvin Coolidge, “builds a temple.  And the man who works there worships there.”

Many American corporate executives still feel about themselves–nd their employees.  But those heady days of knee-jerk worship of CEOs and their oversize salaries and egos are over–at least, temporarily.

Americans have reluctantly learned that the robber barons who rule Wall Street arenot God’s own elect.

Even Ayn Rand disciple Allen Greenspan, the former Federal Reserve chairman and a longtime champion of de-regulation, has admitted he totally underestimated the role greed plays in the making of financial decisions.

It’s thus time for Americans to demand wholesale reforms in the ways corporate executives are allowed to operate. And a good place to start is with the advice of Niccolo Machiavelli.

The Florentine statesman (1469-1527) wrote extensively about how bureaucracies truly work–as opposed to how people believe they do.

Niccolo Machiavelli

Consider the following from his book, The Prince, which offers instruction on how to attain and retain power:

  • IMITATE THOSE WHO HAVE ATTAINED GREATNESS: Not always being able to follow others exactly, nor attain to the excellence of those he imitates, a prudent man should always follow in the paths trodden by great men and imitate those who are most excellent….  If he does not attain to their greatness, at any rate he will get some tinge of it.
  • DON’T RELY ON LOVE:  …I conclude, therefore, with regard to being loved and feared, that men love at their own free will, but fear at the will of the prince, and that a wise prince must rely on what is in his power and not on what is in the power of others, and he must only contrive to avoid incurring hatred….
  • NEED TO BE PRACTICAL:  A man who wishes to make a profession of goodness in everything must inevitably come to grief among so many who are not good.  And therefore it is necessary for a prince, who wishes to maintain himself, to learn how not to be good, and to use this knowledge and not use it, according to the necessity of the case.
  • CAUTION AND BOLDNESS: A [leader]…must imitate the fox and the lion, for the lion cannot protect himself from traps, and the fox cannot defend himself from wolves.  One must therefore be a fox to avoid traps, and a lion to frighten wolves.  Those who wish to be only lions do not realize this.
  • SANCTIONS VS. FAVORS:  [Leaders] should let the carrying out of unfavorable duties devolve to others, and bestow favors themselves.
  • RISK AS A GIVEN: Let no [leader] believe that [he] can always follow a safe policy, rather let [he] think that all are doubtful.  This is found in the nature of things, that one never tries to avoid one difficulty without running into another, but prudence consists in being able to know the nature of the difficulties, and taking the least harmful as good.
  • A RULER’S SUBORDINATES: The first impression that one gets of a ruler and his brains is from seeing the men that he has about him.  When they are competent and loyal one can always consider him wise, as he has been able to recognize their ability and keep them faithful.
  • But when they are the reverse, one can always form an unfavorable opinion of him, because the first mistake that he makes is in making this choice.
  • EVALUATING COMPETENCE:  There are three different kinds of brains: the one understands things unassisted, the other understands things when shown by others, the third understands neither alone nor with the explanations of others.  The first kind is most excellent; the second is also excellent; but the third is useless.
  • OVERCOMING ONE’S OWN NATURE:  No man can be found so prudent as to be able to adopt himself to [time and circumstances], either because he cannot deviate from that to which his nature disposes him.
  • Or else because having always prospered by walking in one path, he cannot persuade himself that it is well to leave it; and therefore the cautious man, when it is time to act suddenly, does not know how to do so and is consequently ruined.  For if one could change one’s nature with time and circumstances, fortune would never change.
  • ENSURING LOYALTY:  A wise prince will seek means by which his subjects will always have need of his government, and then they will always be faithful to him.
  • CRUELTIES:  Well-committed may be called those…cruelties which are perpetrated once for the need of securing one’s self, and which afterward are not persisted in, but are exchanged for measures as useful to the subjects as possible.  Cruelties ill committed are those which, although at first few, increase rather than diminish with time.
  • FORTUNE: I think it may be true that fortune is the ruler of half our actions, but that she allows the other half or thereabouts to be governed by us.
  • I would compare her to an impetuous river that, when turbulent, inundates the plains, casts down trees and buildings, removes earth from this side and places it on the other; every one flees before it, and everything yields to its fury without being able to oppose it.  Still, when it is quiet, men can make provisions against it by dykes and banks, so that when it follows it will either go into a canal or its rush will not be so wild and dangerous.

GREED-TESTING FOR CEOS: PART TWO (END)

In Bureaucracy, Business, History, Politics on May 22, 2013 at 12:34 am

Robert Benmosche, the CEO of American International Group (AIG) recently offered some blunt advice to college graduates searching for work.

“You have to accept the hand that’s been dealt you in life,” Benmosche said in an interview on Bloomberg Television. “Don’t cry about it. Deal with it.”

As is typical of one-percenters, Benmosche blames willing-to-work college graduates for the refusal of rich employers to offer jobs instead of excuses.

AIG’s way of “accepting the hand that’s been dealt you in life” was to go crying to the Federal Government for a bailout loan–which eventually ballooned to $182 billion.

If college graduates should “deal with” the hardships of finding a responsible, hiring-inclined employer with a stiff upper lip, as Benmosche advises, the same advice should work wonders on greed-fueled CEOs.

Greed-test CEOs for future government loans.

After all, drug-testing welfare recipients has become the new mantra for Republicans.

Some bills have even targeted people who seek unemployment insurance and food stamps, despite scanty evidence that the poor and jobless are disproportionately on drugs.

The concept of background screening is actually sound. But Republicans are aiming it at the wrong end of the economic spectrum.

Since 2008, the government has handed out billions of dollars in bailouts to CEOs of the wealthiest corporations in the country.

The reason: To rescue the economy from the calamity produced by the criminal greed and recklessness of those same corporations.

In 2008, Alan Greenspan, the former chairman of the Federal Reserve, testified before Congress about the origins of the Wall Street “meltdown.”

He admitted that he was “shocked” at the breakdown in U.S. credit markets and said he was “partially” wrong to resist regulation of some securities.

“Those of us who have looked to the self-interest of lending institutions to protect shareholder’s equity–myself especially–are in a state of shocked disbelief,” said Greenspan, who had ruled the Fed from 1987 to 2006.

As a disciple of the right-wing philosopher, Ayan Rand, Greenspan had fiercely held to her belief that “The Market” was a divine institution. As such, “it” alone knew what was best for the nation’s economic prosperity.

“Enlightened self-interest,” he believed, would guarantee that those who dedicated their lives to making money would not allow mere greed to steer them–and the country–into disaster.

As he saw it, any attempt to regulate greed-based appetites could only harm that divine institution.

Greenspan proved wrong. And the nation will be literally paying for such misguided confidence in profit-addicted men for decades to come.

So if Republicans want to protect the “poor, oppressed taxpayer,” they should demand background investigations for those whose addiction truly threatens the economic future of this country.

That is–the men (and occasionally women) who run the nation’s most important financial institutions, such as banks, insurance and mortgage companies.

Thus, in the future, all CEOs–and their topmost executives–of financial institutions seeking Federal bailouts should be required to:

  • Undergo “full field investigations” by the FBI and IRS.
  • Submit full financial disclosure forms concerning not only themselves but all members of their immediate families.
  • Be subject to Federal prosecution for perjury if they provide false information or conceal evidence of criminal violations.
  • Periodically submit themselves for additional background investigation.
  • Be subject to arrest, indictment and prosecution if the background investigation turns up evidence of criminal activity.

In addition:

  • If a bailout-seeking financial institution refuses to comply with these criteria, it should be refused the loan.
  • If a CEO and/or other top officials are judged ineligible for a loan, the company should be asked to replace those executives with others who might qualify.
  • Those alternative executives should be subject to the same background investigation requirements as just outlined.
  • If the institution refuses to replace those executives found ineligible, the Government should refuse the loan.
  • If the Government is forced to take over a troubled financial institution, its CEO and top executives should be replaced with applicants who have passed the required security screening.

The United States has a long and embarrassing history in worshipping wealth for its own sake. Part of this can be traced to the old Calvinistic doctrine that wealth is a proof of salvation, since it shows evidence of God’s favor.

Another reason for this worship of mammon is the belief that someone who is wealthy is automatically endowed with wisdom and integrity.

Following these beliefs to their ultimate conclusion will transform the United States into a plutocracy–a government of the wealthy, by the wealthy, for the wealthy.

Every day we see fresh evidence of the destruction wrought by the unchecked greed of wealthy, powerful men.

When they–and their paid shills in Congress–demand, “De-regulate business,” it’s essential to remember what this really means.

It means: “Let criminals be criminals.”

HOW TO BE A SMARTER EXECUTIVE: PART TWO (END)

In Bureaucracy, Business, History, Self-Help on May 14, 2013 at 12:00 am

I returned, and saw under the sun, that the race is not to the swift, nor the battle to the strong, neither yet bread to the wise, nor yet riches to men of understanding, nor yet favour to men of skill; but time and chance happeneth to them all.

–Ecclesiastes 9:11

It is one thing to gain executive power, and another to hold onto it.  It is altogether different to use it wisely and justly.

Many are the dictators who have ruled long, but not justly–such as Porfiro Diaz, whose 30-year regime was ended by the Mexican Revolution in 1911.

And many are those who wanted to rule justly but could not face up to the harsh realities of power.  One of these was Francisco Madero, who democratically succeeded Diaz–but was soon betrayed and executed by Victoriana Huerta, one of his own generals.

In Part One, I outlined a number of timeless suggestions by Niccolo Machiavelli, the Florentine statesman and patriot (1469-1527) for attaining and wisely employing executive power.

Niccolo Machiavelli

Many of this nation’s corporate executives and officials manning local, state and Federal agencies (including the Presidency) would do well to pay close attention to his advisories.  Among these:

  • EVALUATING A SUBORDINATE: For a prince to be able to know a minister there is this method which never fails.  When you see the minister think more of himself than of you, and in all his actions seek his own profit, such a man will never be a good minister, and you can never rely on him.  For whoever has in hand the state of another man must never think of himself but of the prince, and not mind anything but what relates to him.
  • TREATMENT OF SUBORDINATES: And on the other hand, the prince, in order to retain his fidelity, ought to think of his minister, honoring and enriching him, doing him kindnesses and conferring on him favors and responsible tasks, so that the great favors and riches bestowed on him cause him not to desire other honors and riches, and the offices he holds make him fearful of changes.  When princes and their ministers stand in this relation to each other, they can rely the one upon the other; when it is otherwise, the result is always injurious either for one or the other of them.
  • TAKING COUNSEL: There is no way of guarding oneself against flattery than by letting men understand that they will not offend you by speaking the truth.  But when every one can tell you the truth, you lose their respect.
  • A prudent prince must therefore take a third course, by choosing for his counsel wise men, and giving them alone full liberty to speak the truth to him, but only of those things that he asks and of nothing else.
  • MAKING DECISIONS: But he must be a great asker about everything and hear their opinions, and afterwards deliberate by himself in his own way, and in these counsels and with each of these men comport himself so that every one may see that the more freely he speaks, the more he will be acceptable.  Beyond these he should listen to no one, go about the matter deliberately, and be determined in his decisions.
  • SEEK THE TRUTH:  A prince, therefore, ought always to take counsel, but only when he wishes, not when others wish.  On the contrary, he ought to discourage absolutely attempts to advise him unless he asks it.  But he ought to be a great asker, and a patient hearer of the truth about those things of which he has inquired.  Indeed, if he finds that anyone has scruples in telling him the truth he should be angry.
  • UNWISE PRINCES CANNOT BE WISELY ADVISED: And since some think that a prince who gains the reputation of being prudent is so considered, not by his nature but by the good counselors he has about him, they are undoubtedly deceived.  It is an infallible rule that a prince who is not wise himself cannot be well advised, unless by chance he leaves himself entirely in the hands of one man who rules him in everything, and happens to be a very prudent man. In this case, he may doubtless be well governed, but it would not last long, for the governor would in a short time deprive him of the state.
  • FORTUNE: I think it may be true that fortune is the ruler of half our actions, but that she allows the other half or thereabouts to be governed by us.
  • I would compare her to an impetuous river that, when turbulent, inundates the plains, casts down trees and buildings, removes earth from this side and places it on the other; every one flees before it, and everything yields to its fury without being able to oppose it.
  • Still, when it is quiet, men can make provisions against it by dykes and banks, so that when it follows it will either go into a canal or its rush will not be so wild and dangerous.

RESTORING TRUST IN THE TREASURY – PART TWO (END)

In Business, Politics, Social commentary on January 11, 2013 at 12:10 am

All those who have written upon civil institutions demonstrate…that whoever desires to found a state and give it laws, must start with assuming that all men are bad and ever ready to display their vicious nature, whenever they may find occasion for it. 

If their evil disposition remains concealed for a time, it must be attributed to some unknown reason; and we must assume that it lacked occasion to show itself.  But time, which has been said to be the father of all truth, does not fail to bring it to light.

–Niccolo Machiavelli, The Discourses

The Treasury Department fears that widespread public anger at some of its major economic programs–such as the bank bailout–will deter government officials from intervening in future crises.

As a result, the Treasury Department hopes to regain the public’s trust by issuing a series of economic charts.

Unfortunately, the Treasury’s chart-topping effort will go for nothing.

Emotionally-charged matters–such as child molestation or government bailouts to the rich–don’t lend themselves to “appeals to reason.”

But a different approach might well salvage some public faith in the Treasury Department’s judgment: Greed-test CEOs for future government loans.

After all, drug-testing welfare recipients has become the new mantra for Republicans.

Some bills have even targeted people who seek unemployment insurance and food stamps, despite scanty evidence that the poor and jobless are disproportionately on drugs.

The concept of background screening is actually sound. But Republicans are aiming it at the wrong end of the economic spectrum.

Since 2008, the government has handed out billions of dollars in bailouts to CEOs of the wealthiest corporations in the country.

The reason: To rescue the economy from the calamity produced by the criminal greed and recklessness of those same corporations.

In 2008, Alan Greenspan, the former chairman of the Federal Reserve, testified before Congress about the origins of the Wall Street “meltdown.”

He admitted that he was “shocked” at the breakdown in U.S. credit markets and said he was “partially” wrong to resist regulation of some securities.

“Those of us who have looked to the self-interest of lending institutions to protect shareholder’s equity–myself especially–are in a state of shocked disbelief,” said Greenspan, who had ruled the Fed from 1987 to 2006.

As a disciple of the right-wing philosopher, Ayan Rand, Greenspan had fiercely held to her belief that “The Market” was a divine institution. As such, “it” alone knew what was best for the nation’s economic prosperity.

“Enlightened self-interest,” he believed, would guarantee that those who dedicated their lives to making money would not allow mere greed to steer them–and the country–into disaster.

As he saw it, any attempt to regulate greed-based appetites could only harm that divine institution: The Market.

Greenspan was proved wrong. And the nation will be literally paying for such misguided confidence in profit-addicted men for decades to come.

So if Republicans want to protect the “poor, oppressed taxpayer,” they should demand background investigations for those whose addiction truly threatens the economic future of this country.

That means the men (and occasionally women) who run the nation’s most important financial institutions, such as banks, insurance and mortgage companies.

Thus, in the future, all CEOs–and their topmost executives–of financial institutions seeking Federal bailouts should be required to:

  • Undergo “full field investigations” by the FBI and IRS.
  • Submit full financial disclosure forms concerning not only themselves but all members of their immediate families.
  • Be subject to Federal prosecution for perjury if they provide false information or conceal evidence of criminal violations.
  • Periodically submit themselves for additional background investigation.
  • Be subject to arrest, indictment and prosecution if the background investigation turns up evidence of criminal activity.

In addition:

  • If a bailout-seeking financial institution refuses to comply with these criteria, it should be refused the loan.
  • If a CEO and/or other top officials are judged ineligible for a loan, the company should be asked to replace those executives with others who might qualify.
  • Those alternative executives should be subject to the same background investigation requirements as just outlined.
  • If the institution refuses to replace those executives found ineligible, the Government should refuse the loan.
  • If the Government is forced to take over a troubled financial institution, its CEO and top executives should be replaced with applicants who have passed the required security screening.

The United States has a long and embarrassing history of worshipping wealth for its own sake. Part of this can be traced to the old Calvinistic doctrine that wealth is a proof of salvation, since it shows evidence of God’s favor.

Another reason for this worship of mammon is the belief that someone who is wealthy is automatically endowed with wisdom and integrity.

By that criteria, the capos of the Mafia must be presumed to be saints and geniuses.

Following these beliefs to their ultimate conclusion will transform the United States into a plutocracy–a government of the wealthy, by the wealthy, for the wealthy.

Every day we see fresh evidence of the destruction wrought by the unchecked greed of wealthy, powerful men.

When they–and their paid shills in Congress–demand, “De-regulate business,” it’s essential to remember what they really mean.

It means: “Let criminals be criminals.”

RESTORING TRUST IN THE TREASURY – PART ONE (OF TWO)

In Business, Politics, Social commentary on January 10, 2013 at 12:10 am

The Treasury Department fears that widespread public anger at some of its major economic programs–such as the bank bailout–will deter government officials from intervening in future crises.

The public has fused the $700 billion Wall Street bailout with the $787 billion stimulus–and had fiercely attacked the latter.

As a result, the Treasury Department hopes to regain the public’s trust by issuing a series of economic charts.

The new Treasury charts are intended to underscore:

  • the severity of the economic dip;
  • the recovery has been happening faster than many people realize;
  • the lower-than-expected costs of the financial stability programs; and
  • the country has a long way to go to recover from the recession.

Alas, the Treasury’s chart-topping effort will go for nothing.

Emotionally-charged matters–such as child molestation or government bailouts to the rich–don’t lend themselves to appeals to reason.

It was the Wall Street bailout that ignited the Tea Party movement.  And Tea Partiers won’t stop demanding the firing of Treasury Secretary Timothy Geithner just because his agency draws up a few pie-charts.

Yet the Treaasury Department might yet salvage at least some part of the public trust.

The solution: Greed-testing for CEO’s.

Throughout 2012r Republican lawmakers pursued welfare drug-testing in Congress and more than 30 states.

Some bills even targeted people who claim unemployment insurance and food stamps, despite scanty evidence the poor and jobless are disproportionately on drugs.

The concept of background screening is actually sound.  But Republicans are aiming it at the wrong end of the economic spectrum.

Since 2008, the government has handed out billions of dollars in bailouts to the wealthiest corporations in the country.

The reason: To rescue the economy from the calamity produced by the criminal greed and recklessness of those same corporations.

For example:

  • The Troubled Asset Relief Program (TARP) has invested $118.5 billion in restoring liquidity to the financial markets.
  • Federal Reserve rescue efforts: $1.5 trillion invested.
  • Federal stimulus programs designed to save or create jobs and jumpstart the economy from recession. $577.8 billion invested.
  • American International Group: Multifaceted bailout to help insurers through restructuring, minimize the need to post collateral and get rid of toxic assets. $127.4 billion invested.
  • FDIC bank takeovers: Cost to FDIC fund that insures losses depositors suffer when a bank fails. $45.4 billion billion invested.
  • Other financial initiatives designed to rescue the financial sector. $366.4 billion invested.
  • Other housing initiatives designed to rescue the housing market and prevent foreclosures. $130.6 billion invested.

Total of federal monies invested: $3 trillion.

It’s important to note that these figures–supplied by the Federal Reserve, Treasury Department, Federal Deposit Insurance Corporation, Congressional Budget Ooffice and the White House–date from November 16, 2009.

And it’s equally important to remember that welfare recipients did not

  • hold CEO positions at any of the banks so far bailed out;
  • run such insurance companies as American International Group (AIG);
  • administer the Federal Home Loan Mortgage Corporation, known as Freddie Mac;
  • command the Federal National Mortgage Association, known as Fannie Mae.

The 2010 documentary “Inside Job” chronicles the events leading to the 2008 global financial crisis. One of its most insightful moments occurs at a party held by then-Treasury Secretary Henry Paulson.

“We can’t control our greed,” the CEO of a large bank admits to his fellow guests.

“You should regulate us more.”

Greed is defined as an excessive desire for wealth or goods. At its worst, greed trumps rationality, judgment and concern about the damage it may cause.

Greed begins in the neurochemistry of the brain. A neurotransmitter called dopamine fuels our greed. The higher the dopamine levels in the brain, the greater the pleasure we experience.

Cocaine, for example, directly increases dopamine levels. So does money.

Harvard researcher Hans Breiter has found, via magnetic resonance imaging studies, that the craving for money activates the same regions of the brain as the lust for sex, cocaine or any other pleasure-inducer.

Dopamine is most reliably activated by an experience we haven’t had before. We crave recreating that experience.

But snorting the same amount of cocaine, or earning the same sum of money, does not cause dopamine levels to increase. So the pleasure-seeker must increase the amount of stimuli to keep enjoying the euphoria.

In time, this incessant craving for pleasure becomes an addiction. And feeding that addiction–with ever more money–becomes the overriding goal.

Thus, the infamous line–”Greed is good”–in the 1987 film, “Wall Street,” turns out to be both false and deadly for all concerned.

But the situation need not remain this way.

RESTORING TRUST IN THE TREASURY – PART TWO (END)

In Bureaucracy, Business, Law, Politics, Social commentary on April 17, 2012 at 12:00 am

The Treasury Department fears that widespread public anger at some of its major economic programs–such as the bank bailout–will deter government officials from intervening in future crises.

So warned an April 13 story in the Huffington Post under the headline: “Treasury Tries to Bail Out Public Image of Bailout.”

As a result, the Treasury Department hopes to regain the public’s trust by issuing a series of economic charts.

Unfortunately, the Treasury’s chart-topping effort will go for nothing.

Emotionally-charged matters–such as child molestation or government bailouts to the rich–don’t lend themselves to “appeals to reason.”

But a different approach might well salvage some public faith in the Treasury Department’s judgment: Greed-test CEOs for future government loans.

After all, drug-testing welfare recipients has become the new mantra for Republicans.

Some bills have even targeted people who seek unemployment insurance and food stamps, despite scanty evidence that the poor and jobless are disproportionately on drugs.

The concept of background screening is actually sound. But Republicans are aiming it at the wrong end of the economic spectrum.

Since 2008, the government has handed out billions of dollars in bailouts to CEOs of the wealthiest corporations in the country.

The reason: To rescue the economy from the calamity produced by the criminal greed and recklessness of those same corporations.

In 2008, Alan Greenspan, the former chairman of the Federal Reserve, testified before Congress about the origins of the Wall Street “meltdown.”

He admitted that he was “shocked” at the breakdown in U.S. credit markets and said he was “partially” wrong to resist regulation of some securities.

“Those of us who have looked to the self-interest of lending institutions to protect shareholder’s equity–myself especially–are in a state of shocked disbelief,” said Greenspan, who had ruled the Fed from 1987 to 2006.

As a disciple of the right-wing philosopher, Ayan Rand, Greenspan had fiercely held to her belief that “The Market” was a divine institution. As such, “it” alone knew what was best for the nation’s economic prosperity.

“Enlightened self-interest,” he believed, would guarantee that those who dedicated their lives to making money would not allow mere greed to steer them–and the country–into disaster.

As he saw it, any attempt to regulate greed-based appetites could only harm that divine institution.

Greenspan proved wrong. And the nation will be literally paying for such misguided confidence in profit-addicted men for decades to come.

So if Republicans want to protect the “poor, oppressed taxpayer,” they should demand background investigations for those whose addiction truly threatens the economic future of this country.

That is–the men (and occasionally women) who run the nation’s most important financial institutions, such as banks, insurance and mortgage companies.

Thus, in the future, all CEOs–and their topmost executives–of financial institutions seeking Federal bailouts should be required to:

  • Undergo “full field investigations” by the FBI and IRS.
  • Submit full financial disclosure forms concerning not only themselves but all members of their immediate families.
  • Be subject to Federal prosecution for perjury if they provide false information or conceal evidence of criminal violations.
  • Periodically submit themselves for additional background investigation.
  • Be subject to arrest, indictment and prosecution if the background investigation turns up evidence of criminal activity.

In addition:

  • If a bailout-seeking financial institution refuses to comply with these criteria, it should be refused the loan.
  • If a CEO and/or other top officials are judged ineligible for a loan, the company should be asked to replace those executives with others who might qualify.
  • Those alternative executives should be subject to the same background investigation requirements as just outlined.
  • If the institution refuses to replace those executives found ineligible, the Government should refuse the loan.
  • If the Government is forced to take over a troubled financial institution, its CEO and top executives should be replaced with applicants who have passed the required security screening.

The United States has a long and embarrassing history in worshipping wealth for its own sake. Part of this can be traced to the old Calvinistic doctrine that wealth is a proof of salvation, since it shows evidence of God’s favor.

Another reason for this worship of mammon is the belief that someone who is wealthy is automatically endowed with wisdom and integrity.

Following these beliefs to their ultimate conclusion will transform the United States into a plutocracy–a government of the wealthy, by the wealthy, for the wealthy.

Every day we see fresh evidence of the destruction wrought by the unchecked greed of wealthy, powerful men.

When they–and their paid shills in Congress–demand, “De-regulate business,” it’s essential to remember what this really means.

It means: “Let criminals be criminals.”

GREED-TESTING FOR CEOS – PART TWO (END)

In Business, History, Law Enforcement, Politics on February 15, 2012 at 12:07 am

Drug-testing welfare recipients has become the new mantra for Republicans.

Some bills have even targeted people who seek unemployment insurance and food stamps, despite scanty evidence that the poor and jobless are disproportionately on drugs.

But no matter.  The “cause” meets several needs for the right-wingers who support it:

  • It gives them a new “devil” to rally their constituents against.
  • It creates yet another divisive “wedge-issue” for election-time.
  • It diverts attention from legitimate problems facing the country–such as a tax-code that forces the poor and middle-class to pay higher taxes than the ultra-rich. 

Republicans claim they want to drug-test welfare recipients for two reasons:

  1. They want to “help” the poor by making sure they’re not messing up their lives with illegal drugs.
  2. They want to protect the “poor, oppressed taxpayer” from “unworthy” welfare recipients.

The concept of background screening is actually sound.  But Republicans are aiming it at the wrong end of the economic spectrum.

Since 2008, the government has handed out billions of dollars in bailouts to the wealthiest corporations in the country.  The reason: To rescue the economy from the calamity produced by the criminal greed and recklessness of those same corporations.

Harvard researcher Hans Breiter has found, via magnetic resonance imaging studies, that the craving for money activates the same regions of the brain as does the lust for sex, cocaine or any other pleasure-inducer.

And unless this craving is reigned in by external controls–such as ever-vigilant regulation–its addictive nature will leave catastrophe in its wake.

In 2008, Alan Greenspan, the former chairman of the Federal Reserve, testified before Congress about the origins of the Wall Street “meltdown.”  He admitted that he was “shocked” at the breakdown in U.S. credit markets and said he was “partially” wrong to resist regulation of some securities.

“Those of us who have looked to the self-interest of lending institutions to protect shareholder’s equity–myself especially–are in a state of shocked disbelief,” said Greenspan, who had ruled the Fed from 1987 to 2006.

As a disciple of the right-wing philosopher, Ayan Rand, Greenspan had fiercely held to her belief that “The Market” was a divine institution.  As such, “it” alone knew what was best for the nation’s economic prosperity.

“Enlightened self-interest,” he believed, would guarantee that those who dedicated their lives to making money would not allow mere greed to steer them–and the country–into disaster.

As he saw it, any attempt to regulate greed-based appetites could only harm that divine institution.

Greenspan proved wrong.  And the nation will be literally paying for such misguided confidence in profit-addicted men for decades to come.

So if Republicans want to protect the “poor, oppressed taxpayer,” they should demand background investigations for those whose addiction truly threatens the economic future of this country.

That is–the men (and occasionally women) who run the nation’s most important financial institutions, such as banks, insurance and mortgage companies.

Thus, in the future, all CEOs–and their topmost executives–of financial institutions seeking Federal bailouts should be required to:

  • Undergo “full field investigations” by the FBI and IRS.
  • Submit full financial disclosure forms concerning not only themselves but all members of their immediate families.
  • Be subject to Federal prosecution for perjury if they provide false information or conceal evidence of criminal violations.
  • Periodically submit themselves for additional background investigation. 
  • Be subject to arrest, indictment and prosecution if the background investigation turns up evidence of criminal activity.

In addition:

  • If a bailout-seeking financial institution refuses to comply with these criteria, it should be refused the loan.
  • If a CEO and/or other top officials are judged ineligible for a loan, the company should be asked to replace those executives with others who might qualify.
  • Those alternative executives should be subject to the same background investigation requirements as just outlined.
  • If the institution refuses to replace those executives found ineligible, the Government should refuse the loan.
  • If the Government is forced to take over a troubled financial institution, its CEO and top executives should be replaced with applicants who have passed the required security screening.

The United States has a long and embarrassing history in worshipping wealth for its own sake.  Part of this can be traced to the old Calvinistic doctrine that wealth is a proof of salvation, since it shows evidence of God’s favor.

Another reason for this worship of mammon is the belief that someone who is wealthy is automatically endowed with wisdom and integrity.

Following these beliefs to their ultimate conclusion will transform the United States into a plutocracy–a government of the wealthy, by the wealthy, for the wealthy.

Every day we see fresh evidence of the destruction wrought by the unchecked greed of wealthy, powerful men.

When they–and their bought-off shills in Congress–demand, “De-regulate business,” it’s essential to remember what this really means.

It means: “Let criminals be criminals.”

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