Getting Back to Financial Basics

Had the Federal Reserve Bank not intervened, what is called the credit ring of the global financial services industry would have failed, leading to a collapse of the capital market as one bank after another would have reneged on payments to others, causing a domino effect of bank failures. The concept of financial Armageddon almost became reality.

History is being made in the capital markets. It is prudent for the owners of capital to now stand aside, i.e., to withdraw all liquidity, to cause enough of a run on banks that the bottom line is that the weakest financial services companies fail and the strongest return to us, the owners of capital, a market that is free of the most basic conflicts of interest that have existed since the 1933 and 1934 US Securities Act and Regulations that permitted such behavior.

In effect, Wall Street has been hoisted on their own petard.

[From the urban dictionary] Petard: a device contrived to hurt another person; boobytrap; an explosive contraption used in warfare to blow in a door or form a breach in a wall.

To "hoist by one's own petard" means you have been hurt or caught by the very device that you intended to hurt someone else. This phrase is often used mockingly, as if to say that you stepped in your own mess.

The revolution in the financial services industry has begun. Should we join it, the victors will enjoy the spoils, with not much changed. But, if we decide to step back and force their hand, i.e., let these banks destroy themselves, the victors will have to return to us with a new and much improved capital market, one that works for us and not against us.

It is time for those who provide services to be the servants and for the owners of capital to be the masters.

A simple philosophy in life, yes, but we all need to get back to the basics.

Comments

[Tony Soprano]

“The revolution in the financial services industry has begun.”

REVOLUTION YOU SAY! MAYBE THIS WAS A TYPO?
IT’S AN EVOLUTION NOT A REVOLUTION
THAT MR. CARA WOULD LIKE YOU TO THINK.

OUR GOVT AND BUSINESSES ARE CONSTANTLY EVOLVING.

THAT’S BEAUTY OF IT.
______________________...


“victors will enjoy the spoils”

SOUNDS LIKE ANGER, WHEN YOU ARE THIS ANGRY ITS HARD TO THINK STRAIGHT.
______________________...

“let these banks destroy themselves, the victors will have to return to us with a new and much improved capital market, one that works for us and not against us.”

REMINDS OF A SOCCER GAME WHEN THE FANS OF THE LOSING TEAM HAVE A RIOT. IT’S A TYPICAL REACTION TO UN-CONTROLLED EMOTIONS.
______________________...

“A simple philosophy in life, yes, but we all need to get back to the basics.”

THIS MAY BE TRUE. BUT NOT NOW -- MAYBE IN TEN OR TWENTY YEARS.

THE AUTHOR IS SO ANGRY THAT HE WOULD TAKE GREAT JOY IF WE ATE OUR OWN TAILS. HE IS TRYING TO SPREAD HATE AND ANGER.

[TAS]

If the far left for whom Cara is Patron Saint succeeds with his wishes, I'll be amongst the first to react to the socialist lefties taking over the "capital" markets.

My passport is valid and the Swiss Bank I utilize is open for business.

Many forward-looking capitalists who made Cara wealthy will just go somewhere else to enjoy life and work hard as usual, keeping what they earn, while the misery is spread equally here in North America as a population of victims await freebies from Big Government.

[Tony Soprano]

This is a pile of recycled bunk. If I could short bunk I would.

There should be a bunk index!!! That'll help us measure sentiment. lol

I have a friend who in the 70's was saying the same thing. He threatened to go to Brazil.

You stated the ‘Cara’ is far left. I don’t think so! Far nothing would be better.

[nukldrager]

"It is time for those who provide services to be the servants and for the owners of capital to be the masters." Yeah, and after that the meek will inherit the earth... and, if you read Shakespeare's line a little further he writes; O, 'tis most sweet, When in one line two crafts directly meet."
Could have been written for the Fed and JPM doin' that thing they do, again.

[Tony Soprano]

From hate, and anger . . . to poetry?

Well? Image that!

The irony of it all.

Just give me the facts. I can't eat poetry.

[nukldrager]

Well, Tony I thought it was interesting that the fed teamed up with the first JPM to fix things in 1907, and they just did it again, Monday, but ya can't eat that either. It's just a comment. Shakespeare probably missed a few meals in his day, especially since it was more the kind of world Mr. Cara herein espouses. I'll quit while I'm behind.

[nukldrager]

Correction. There was no fed in 1907. I'd better stick to poetry

[Tony Soprano]

Vangone said:

"Well, Tony I thought it was interesting that the fed teamed up with the first JPM to fix things in 1907, and they just did it again, Monday, but ya can't eat that either."

Since 1907 we have done pretty well, here are a few events you can stick your fork into:

completion of the Panama Canal,

World War I,

the Great Depression,

World War II,

the Marshall Plan,

Korean War,

Eisenhower recession,

the Cold War,

the Cuban Missile Crisis,

Vietnam War,

73-74 recession,

Two oil embargos with very long gas lines,

stagflation of the 70's,

Watergate and the Impeachment process of Nixon, he resigned

14 percent Treasury’s from the Jimmy Carter era,

The Persian Gulf War,

intervention in the Former Yugoslavia,

Dot Com Bubble

9/11 Attack

Airline Industry Collapse and recession,

Enron and Worldcom,

Iraq War,

Katrina,

start of the Great Housing Depression

[investmaui]

Back then...there wasn't a fed..but there was THE JP Morgan and his pals, some who went on to become government officials.

[nukldrager]

You left out a few, but I'm start a little earlier:

Taxation w/o representation

American revolution (ftk and his armies)

Cicil war

Battle between free enterprise and monopoly's

Fed reserve act 1913, passed by dems

The Interstate Highways

Eisenhower warns of Industrial military complex growing influenece

McDonalds

S&L

Wal-Mart

Current credit quandry

At least you could eat one of those! I left out Boston tea party, because that's about a drink

[nukldrager]

You remember the cicil war? fm

[Tony Soprano]

civil war?

the guideline started at 1907 and here are a few more:

the Great Mississippi Flood of 1927

Good Friday Earthquake (1964) In Alaska, it was the fourth biggest earthquake recorded,

the Gulf of Tonkin Crisis

the murder JFK, Dr. King, and Bobby Kennedy

the great riots of 1968

the Pentagon Papers

California earthquake (1983)

the 87 market crash

Three Mile Island nuclear power plant crisis

Hurricane Andrew 1992 very destructive United States hurricane

The Great USA Flood of 1993

plus all the other events posted earlier, all occurred after 1907

The more events I post the more I realize how Great America truly is.

America has proven that she can and will overcome all challenges.

THIS IS NOT POETRY TO OUR EARS BUT REAL EVENTS THAT WERE OVERCOME.

[nukldrager]

No doubt the Americans who can count themselves with the "owners" of capital can fully agree about the greatness of America, while the "service" portion of Americans, largely equipped with the grade school textbook version of America, are wondering wtf their money is disappearing so fast, and since I live in this great country, why is my income going down, and my outgo going up?. Mr. Cara here provides an answer in his expose of financial basics. Now is the time for capital to return to it's rightful owners. I don't think the average consumer is aware of that. And while consumers won't be allowed to go the way of the buffalo, the herd is shrinking, at least for now. No poetry intended.