pg <penang@[EMAIL PROTECTED]
> wrote:
>Welcome, credit default swaps .... :)
>
>The global insurance behemoth, AIG, just announced their results on Q4
>of 2007. Which was delayed by its auditor due to "material weakness"
>it discovered in its accounting systems. And forced the insurance
>giant to take steps to write down a hitherto relatively little known
>financial derivative: CDS.
>
>AIG fired the first salvo, by writing down USD 10 billion.
>
>It warned that the worse is not over, and there will be more to come.
>The subprime market, as bad as it has been, is only a 2+ trillion
>problem. While not many financial institutions participated in the
>subprime market, all over the world financial institutions are knee
>deep in the CDS one. It is a enormous market worth a combined USD 45
>trillion. If 1% of that goes sour, the world would be staring at a USD
>450 billion hole that must be filled.
>
>Making subprime woes feel like tick bites .... :)
Giving workers a higher wage makes them able to pay the mortgages,
widens the housing market.
This would have to be payed for by reducing top incomes so that it
remains stable. That can be done ending the private finance sector and
making employees have power over company profits.
To end the private finance sector in a heavy disparity and corruption
economy like the USA, one would almost certainly be forced at some
point to introduce a new currency, and distribute that into the
system as starting positions (if that does not make a bad situation
worse in the short term, one would need to prepare for this with new
bills and I guess free food kitchens to fix the almost inevitable
holes). Then keeping proper control over the distribution of
that money and denying by law lending on interest. The lack
in finance in the economy will have to be solved by a new
non-profit-on-the-gambled-sum investment mechanism (finance as a
real-world-results driven industry and/or Government-democratic
motivated system.)
The economic gambling class (company owner****p gamblers, property
and land gamblers, currency gamblers, loan gamblers, to a lesser
extend: mortgage lenders and consumption credit lenders) will have to be
cut (not necessarily including accounting clerks and sup****t staff).
then restructured, including some of their pawn bosses in industry who
can get fired by the employees. If these people have no useful skills
in the labor market (their sector has become illegal) a good place
again for them could be with relatively easy to learn menial labor
jobs. That can be things like conveyer belt production, cleaning,
mail / paper delivery. It could be an idea to open an op****tunity for
them at municipal maintenance, which is probably understaffed, if
not some projects could be started. The bankers, gamblers and such
could then be offered a 5 years job security there, to learn how to
work again, get some work rhythm going. Unfortunately they can't be
put back into the new non-profit finance sector because they can't
be trusted with that, they probably will have to get a work prohibition
for that sector, like you don't want criminals for prison guards either.
If some of these bankers and gamblers are able to find another job then
that's great, it wouldn't be a forced labor system but just an
op****tunity for them. Maintenance of infrastructure is a good one
for that, as it lies outside free markets by nature. I hear the USA
infrastructure is crumbling. Maybe they can be put to work on repairing
the water system, bringing it back to what it should be. Once all the
infrastructure has been repaired, which takes years, they have a good
work rhythm and may be able to sell their labor further to companies.
These companies would then often be democratic, and so that is a great
place to end up. The finance gamblers then back at work won't have to
sup****t a finance gambling class like workers now have to, hence wages
and conditions and quality of life would not be the same they are now
for the working people. A minimum wage would prevent low end abuses,
causes the trivial trade sector to which Government would be blind to
be able to police itself: workers who worked below minimum can make
a claim for the remainder (the details of which are easily solved by
politics and judges.)
With the gambling finance class taken away that side of the mortgages
has eva****ated. The homes can then be refinanced under a public
mechanism to ensure a price is payed so no unequal starting positions
result (Government takes over the mortgage payment collection after
a realistic re-evaliation, does not pay anyone for that.) Some mortgage
and consumption credit lenders may have been well behaved enough to
go on under a non-profit law system, if they can meet its demands.
Demand would be that the profit does not come from invested money. A
credit-union system where members pay for operations and livelihood,
paired with acceptable practical behavior would probably be ok.
Government can set up its own non-profit investment groups for various
goals.
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