A history of the Financial Crisis

When the first Clinton left Office in 1999 the world derivatives were a $100 trillion dollar market. At the time the second Bush’s policy’s lost control of the economy 2008 the world derivatives were at $730 trillion dollars. In the US now, the Federal Reserve’s balance sheet above $3 trillion is dwarfed by the movements that leverage of the $730 trillion dollar derivatives market can achieve. Within portions of its multi-dimensional assets, firms and Nations can form liquidity in any on Nation, and then transfer those assets into another. The intent of the Federal Reserve are a center of the worlds actions and investments. Within portions of its assets, derivatives traders can act in black box transfers of wealth. What international business does in public gains its support from these markets. National wealth can be put to support actions that transform the whole economy, from black box players who have no National responsibility. Capitalism runs on the agreement of all concerned. Because advantage is allowed evenly, you do not need to release or reverse an error if it gives you a economic advantage. Middle Class to Super Rich found an advantages in the trades of those years. And when the failure of a few self inflating silos of finance failed the test of real sustainable assets in the markets, those errors were seen by player in the markets as exposing the over inflated and even unreal derivatives that had grown beyond anyone control. Market liquidity stopped orderly banking to avoid that contamination of there real assets. Also they knew to hide there next moves from a now alerted market.

From 1995 to 2008 the Major Bankers took a larger and larger share of US banking. Out from only 17% of US banking, out to control of passed 80% of the US banking. If you saw clearly the transfer of production and manufacturing into foreign economies, you can be forgiven for this major movement and transfer of wealth within domestic US banking. But it also is a major transfer of wealth that allowed the creation of Hedge Funds and enormous Private Equity trades. One Private Equity Fund now holds $3 trillion in assets. Between the derivatives markets and major banks the markets change to the play ground of management, with control and reward mostly set into the pockets of the firms management before going to give returns to a public investors market. Major Bank management on top of a salary also take bonuses at 48% of all the banks profits, then share the rest with the owners, there public investors. Management in every way won the decades  greatest rewards. Management get first cut before bond holders and investors (public and private) and all of them found no need to share with employees. 

That point “all of them found no need to share with employees“, is a point that is now a major part of the American economy. The financial Silos that Banking, Private Equity Firms, Hedged Trading and the Stock Markets can be lumped into, all trade the markets up or down still taking greater and greater profits, along with major businesses, all the time outside the rest of the national economy. You now have a group of richest made winners, and the regular citizens, those poor to middle class are the ones now paying the fail that was the Banking Crisis. The rich firms get a write-off on there losses carried to there tax bottom line and the permanent lose of place and wealth goes to the rest of our Nations Population. Its all shed onto the lower paid American to get the losses though the system.

We are restructuring as a retail and service economy who needs to reestablish our own full domestic employment on a now services economy. There is nothing large enough to bring control to a unregulated black box financial market that was allowed to grow exponentially lager than the Nation. Those 11 years were a transformation that now call for a greater supporting federal response to extend full employment.

 

Taxation and the Transfer of Wealth

Tax policy moves money.. So on to, taxation and the transfer of wealth back to the Nations working people. If the job you do produces products or services that: place products or services on the streets, in your house, in your office, or in your garage, then it should be able to gain a tax advantage. If it only trades from within its own financial book it should pay a fair share. The simple rules for a tax policy that will give work to people.