Bubble Economy

Déjà vu Dot Con

pets.con sock puppetThere is much talk, much too late of course, about the JOBS act. We warned about this inappropriately titled bill earlier, but as usual, when corporate lobbyists want, corporate lobbyists will get in Congress, no problem. The bill passed and was signed into law, despite having almost nothing to do with real jobs. Dealbook overviews what Wall Street is discovering after the Jumpstart Our Business Startups bill was passed, oops.

Provisions tucked into the so-called JOBS Act, or the Jumpstart Our Business Startups, will roll back some major securities regulations and parts of a landmark legal settlement struck almost a decade ago. That 2003 settlement built a Chinese wall between Wall Street research analysts and investment bankers, an effort to prevent analysts from improperly promoting stocks to help their firms drum up business from corporate clients.

Now many are pouring over the nitty gritty to see what this bill really does. It ain't lookin' too pretty. While being billed as something to give start up companies more sources of funding and flexibility, instead the bill appears to be a re-awakening of the great Dot Con IPO ripoff circle jerk that was going on from 1994-2001.

The real reason for the economic crisis

The economic crisis has the country flailing.
That's not a controversial statement. Since early 2008 the federal government has been trying various, and expensive methods, of jump-starting the economy and propping up the housing market. Since December 2007 the Federal Reserve has created an alphabet soup of programs to stabilize the credit markets.

So far all of these attempts to stabilize the economy have had mixed results at best. Trillions of dollars have been spent and yet the economy is still crippled. Why?

The problem is that the people in charge are asking the wrong question. They are asking, "How do we get back to where we were before this crisis?" The question they should be asking is, "How did this happen?"
Unless we understand what happened and why, we will never be able to fix the economy.

Friday Movie Night - The Greed Game & America's Bubble Addiction

hot buttered popcorn It's Friday Night! Party Time!   Time to relax, put your feet up on the couch, lay back, and watch some detailed videos on economic policy!

 

This weeks videos are an economics lecture on America's Bubble Economy and a BBC documentary on how the super rich use other people's money to ....create bubbles. (Scroll down to see both videos.)