Finance Geek

May 2010

4 posts

“A true measure of economic vitality is measured by wealth. We can look at incomes or other measures of productivity but real wealth is measured by net worth. Who controls wealth in the U.S.? According to a study from the Joint Center for Housing Studies the top 25% of U.S. households control 87% of all wealth in the country.” —America’s wealthiest 25 percent of households own 87 percent of all U.S. wealth. How the middle class face growing income inequality in the new era of the psychopath corporatocracy.

May 24, 20101 note

“These days, trading isn’t risky at all. In fact, it’s safer than walking down the street.
Why?
Because the US government is lending money to the big banks at near-zero interest rates. And the banks are then turning around and lending that money back to the US government at 3%-4% interest rates, making 3%+ on the spread. What’s more, the banks are leveraging this trade, borrowing at least $10 for every $1 of equity capital they have, to increase the size of their bets. Which means the banks can turn relatively small amounts of equity into huge profits—by borrowing from the taxpayer and then lending back to the taxpayer.” —God It’s Great To Be A Banker

May 24, 20101 note

“Deep recovery for the global economy depends on the American consumer becoming the American saver, investor, and builder. That, in turn, depends on a new generation of businesses, that lay the foundations for tomorrow’s industries, sectors, and markets. Those businesses - Constructive Capitalists - are what fuel meaningful investment in people, communities, and society, not just naked consumption by them.” —Umair Haque / Bubblegeneration

May 19, 20105 notes

Will BP be nationalized to pay for the exploding estimated cost of the Gulf disaster? → zerohedge.com

(via unsolicitedanalysis)

I’m not normally for nationalisation, but this one seems to make sense. There is an astounding amount of money to recoup. 

May 6, 2010