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December 19, 2008

The Root Cause Of The Economic Catastrophe

-- by Dave Johnson

Everyone understands that the root cause of this economic catastrophe was corporate money's influence on our politics. Corporations are able to concentrate money. We, the People let them do that because it enables them to undertake large-scale projects. But currently executives can access that money and use it to influence politics through bribery and/or manipulating public opinion. Deregulation, unfair tax codes, loss of consumer and worker protections and decades of falling wages and benefits have been the result -- hardly in the interest of the public.

Until we stop allowing use of corporate money to influence politcians and the public these problems will only increase.

When are we going to come to grips with that?

Posted by Dave Johnson at December 19, 2008 8:57 AM


Comments

Which corporations told the Dems to increase the CA budget from $80-90B in 2004 to $130B in 2008? Did the all the taxpayers in CA experience pay increases of 10% each year in order to pay for the the 40% increase in government costs?

Apparently the census bureau indicates the 44,000 millionaires in CA have shrunk to more like 30,000 due to OUT migration. They are going to low tax states. Could CA tax policy be affecting your economy?

Posted by: mace at December 19, 2008 9:44 PM

Don't you mean 'some' corporations? I thing Microsoft, Google, Rackspace, Wells Fargo, Dell do good things.

Rather than cliche, why not indicate the corporations that are the root of the problem.

-Fannie, Fredie, finance companies, Congress and the Executive branch encouraged DUMB mortgages. Corporations, GSEs, politicians... one and all
- DUMB mortgages were rolled into DUMB derivitives -- CDOs and CMOs, based on the best academic research from Stanford, UC Berkley, Wharton, Harvard.
- Yet the smart guys (probably very few girls did this...smarter with money) sensed these were DUMB derivatives so the bought insurance on the interest payment. Like, in case they blew up. So the bought Credit Default Swaps (CDS) from AIG and the like. More high finance.

The real market has more moving parts than just 'corporations'. As does the Carbon Trading market.

Posted by: Mace at December 20, 2008 10:40 AM

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