Friday, August 19, 2011

House of Cards

Letters To The Editor

Re: Raising Business Taxes Does Affect Job Creation

Dear Sir,

Mr. Daniel J. Prasalowicz (CEO of Mr. Sandless) should hire an honest accounting firm. His highly leveraged business model is outdated and unsustainable. His bottom-line may "show a hefty profit... but uses the extra money to pay off debt."

Does this sound like "profit?" More like setting the groundwork for another over-hyped & over-valued I.P.O. (Initial Public Offering).

Case in point: "All raising my taxes will do is hurt the growth of my company and the creation of jobs. Take more money in taxes, and I will make cuts - payroll being first."

Sadly, the saber-rattling noise and fear-mongering espoused by Mr. Prasalowicz is music to the ears of the investment & business communities.


(Name Redacted)
Philadelphia, Pa

Our Wealth Is Now The Banks'

The Fed loaned $16 trillion of our money to its owner member banks within the past few years, so they can buy up the cheap assets from the crash they created. These banks aren't too big to fail; they are too evil to let live.

Charles Michael Couch, via e-mail

Give Them Just What They Want

What you are witnessing is not just an accident; it is all in the plan. Boom and bust is the design. Boom, working people create wealth out of labor. Bust, Banks collapse the available currency and steal the wealth for pennies on the dollar. How many times do the people have to see this story to get it?

Charles Couch, via e-mail

From the N.Y. Times Archives:

Weak Results Are Projected For Wall Street

Published: July 11, 2011

Only a few short months ago, JPMorgan Chase traders were on such a roll that they did not have a single losing day in the first quarter.

But when the bank reports its second-quarter results this week, that hot streak will have come to an end. Analysts expect JPMorgan to count an almost 20 percent drop in its sales and trading revenues, reflecting a slowdown in investor activity and the dismal performance of its fixed-income and commodities groups.

Bank of America, Citigroup, Goldman Sachs and Morgan Stanley are expected to report similar news. After helping prop up Wall Street during the financial crisis, core trading revenue is projected to drop, on average, by as much as 25 percent from the first quarter, according to Credit Suisse research.

That will put further pressure on the banks' growth prospects, which are already strained by stagnant loan growth and more stringent regulation. It is also prompting nearly every major Wall Street firm to contemplate another round of layoffs amid growing concerns that at least part of the weak results are permanent.

''We are undoubtedly being impacted by lower levels of activity,'' said William Tanona, a financial services analyst with UBS. ''There is a lot of uncertainty out there.''

Together, the five Wall Street banks are still going to take in more than $20 billion from their core trading operations, largely from business done on behalf of clients. For example, the banks routinely help airlines hedge oil prices or bring together buyers and sellers of stock, bonds and other complex securities -- often putting their own money on the line to facilitate a trade. But during the second quarter, the business was particularly hard hit.

Trading volumes fell sharply as investors became unnerved by the running debt crisis in Europe, the political standoff over the debt ceiling in the United States, and lingering concerns over the anemic growth of the broader economy.

Continued on Page 2

Nation & World

President Obama Hits The Campaign Trail; Pretends To Be A Democrat

"White House Weighs Harder Line With GOP. Compromise didn't work, Aides urge exploiting rival's weakness."


Factoid: The bottom 50 percent of households, based on pretax income, make less combined than the top 1 percent. Only three decades ago, the bottom half made more than twice as much.

-- David Leohardt