Mark Cuban discusses Wall Street ethics

Thursday, August 11, 2011 7:53am Written by: Eric Adelson

This is the link to the 60 Minutes story
http://www.cbsnews.com/stories/2010/10/07/60minutes/main6936075.shtml

There are those that say 'Sooner or later the market always crashes' that is true but, the why has changed. People need to understand why. Putting your head in the sand and ignoring it will not solve the problem. There are people that have become very wealthy during our recession and when we have are next recession these people will get even wealthier. Greed will be our ruin.

 

Great post fam

 

Thanks at least one person read it! LOL

 

FOUR EUROPEAN COUNTRIES introduced overnight bans on ‘short-selling’

Geert De Clercq And Paul Day
PARIS/MADRID (Reuters)-

Last year Germany failed to persuade other nations to follow its prohibition on naked short- selling and speculation on European government bonds, limiting the effect of the rules.

“We haven’t envisioned doing it,” French Finance Minister Christine Lagarde told reporters in Paris.

Now the French and others have changed their mind. However unless the United States, Great Britain and rest of Europe decide to ban short-selling it will have limited effect.

A lack of leadership and the inability to control and understand complex technological markets that are fueled by greed is the issue.

 

I read this the other day on a financial blog and readers comments were basically saying he hardly predicted what was obviously coming again. But he broke down the why's which I found quite telling.
The line that jumped out at me was this one...
"Wall Street has nothing to do with creating capital for businesses, its original goal. Wall Street is a platform. It's a platform to be exploited by every technological and intellectual means possible."

This has become a common theme tied to the behavior of the "American way'. If it benefits them personally, screw the public for which they were hired to represent.
This attitude is pervasive also in our Government. For example, the writer for Medicare part D included an exclusion for the the Govt to be able to bid for lower cost medications when purchased in bulk rate from the big Pharms. Why did he do this? Because Big Pharm offered him a $2.4 million position to head their pharmaceutical medication department that conducts liaisons with the Government when he left his Govt post. (which he did)

 

Exactly Kuno, I have noticed that the readers seem intent on trying to show how smart they are and trying to excuse it as 'how capitalism works'. These people are no better than organized criminals seeking that 'big score' regardless of what it does to other people or to their own nation.

 

The words "Wall Street" and "Ethics" in the same sentence is enough to set me into a fit of giggles.

Wall Street *has* no ethics.

 

True.

 

Can someone please explain what Cuban means that Wall Street trading is tied to a nation's 'debt load'????

This is what really pisses me off about those who say we need LESS regulation of Wall Street, not more.

Regulations simply establish the rules of the game, instead of allowing predatory traders to make up the rules as they go along.

A country's fiscal health shouldn't be vulnerable to the whims of the NYSE.

 

This is a part of what he means -

Ellen Brown -THE MONEY ALL WENT OFFSHORE - July 8, 2011
www.webofdebt.com/articles/why_q.php

Debt servitude. Like the United States; you know the nation that just lost its triple A rating.

If nothing is done to rein in the national debt, all Americans face the prospect of massive cuts in services and infrastructure needs (unpopular) or significantly higher taxes (very unpopular) to continue meeting our financial obligations.

Interest rates will rise due to our greater risk to creditors. Rising rates, in turn, would drive up our annual interest payments, which would require more massive cuts in services and infrastructure needs or more significantly higher taxes, but most likely, it means increased borrowing. And just who will the Feds borrow money from? Foreign governments and private banks with Wall Street collecting fees as middlemen.

BTW, all of this speculation feeds and drives Wall Street, that is why Germany and the four European nations are trying to discourage it. Wall Street is more about speculation than capitalization.

A speculative example (and a proven one) would be, buying certain stocks in the middle of a nation's recession because you make the most money in stocks when things go from being real bad to not so bad. The stock market bottoms out in terms of value or cost of stock after about six months into a recession, then you sell it at a higher cost as the economic news or positive rumors increase. News corporations may manufacture or slant news, rather positive or negative through the media, internet etc,. they contribute to the speculation and therefore to the volatility of the market.

 

I don't see why raising taxes is considered such blasphemy.
Let the Bush tax cuts expire and put another 2 to 3 percentage points on everyone's tax rate, including eliminating the most egregious loopholes in the tax code.

It's the simplest and most efficient way to pay down the debt over the next decade.

If you've got 5 maxed out credit cards, most people cut spending, but not 'critical' expenditures,(food, shelter, clothing, healthcare), and they look for another source of income.

You don't move out of your apartment into a cardboard box and cancel your healthcare policy to save money.

 

careful you're making too much sense my friend

 

The fact that every Republican running for Pres. supports those tax cuts and said on Monday to continue them is outrageous. They want everyone to sacrifice but, the wealthy who use them and the Tea Party like mindless puppets.

For the government extra income is a revenue increase i.e. taxes on those who don't pay their fair share.