The Economy

Wall Street to “Securitize” Life Insurance Policies

For the last few decades, financial capital has trumped the “real economy” as far as making money is concerned. Given that they don’t produce any actual goods to exchange, Wall Street has to use “financial wizardry” to come up with its large profits. In other words, they have to continue to reinvent the shell game.

Income Gap Widest Since 1917

According to a much publicized study by University of California-Berkeley economist Emanuel Saez, the income gap between the rich and poor is at its greatest level since 1917. The top 10 percent of Americans now receive nearly 50 percent of all income. According to Saez, “Indeed, the top decile share in 2007 is equal to 49.7 percent, a level higher than any other year since 1917 and even surpasses 1928, the peak of stock market bubble in the ‘roaring’ 1920s.”

Worried About the Future?

ForeclosureAccording to a recent CNN/Research Corp. national poll, only half of all U.S. homeowners are confident they can make their mortgage payments and less than forty percent are confident they can maintain their standard of living in the next year. Moreover, just one in four parents of children less than eighteen feel they can afford their child’s college education, and a scant one in five Americans who have yet to retire are very confident they’ll be able to save enough money to do so comfortably.

"Bloody Monday" and the Changing Consciousness in America"Bloody Monday" ran the headlines, as jobs continue to hemorrhage from the U.S. economy with no end in sight. Since Monday, even more companies have announced layoffs. The list of companies laying off workers is a "who's who" of corporate America: 20,000 from Caterpillar, 10,000 from Boeing, 8,000 from Pfizer, 8,000 from Sprint Nextel, 7,000 from Home Depot, 6,700 from Starbucks, 6,000 from Intel, 5,000 from Microsoft, 5,000 from Schlumberger, 2,000 more from General Motors, 1,200 more from Ford, S1,000 more from United Airlines, 700 from AOL, 600 from Target, 350 from Brooks Automation, and on and on.