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Trust!

I’ve quoted from Money and Markets before, but a recent issue has the perfect followup to my last blog on Goldman Sachs, edited here for brevity:

“The AIG rescue was the biggest taxpayer rip-off of all time, initiating a whole series of Wall Street taxpayer rip-offs…:

1. The U.S. Treasury bails out AIG, protecting AIG’s counterparties from direct losses they’d suffer if AIG failed.

2. The Federal Reserve Bank of New York pays off AIG’s creditors in full. As U.S. investors lose fortunes in financially viable companies, 16 major banks lose nothing in a company otherwise bankrupt, like…

3. Goldman Sachs, with Wall Street’s most extravagant executive bonuses in 2006 and 2007, and the most lavish payer of employee bonuses in 2009.

The money flow is clear:
* From taxpayers to AIG…
* From AIG to big Wall Street investment banks like Goldman Sachs…
* From Goldman Sachs to its employees in the form of lavish bonuses.”

The true cost to our institutions is erosion of trust.  Trust cannot be bought, it is built painstakingly, over time, through the delivery of promises and expectations.

Our economy may recover, in the short term, but the bankruptcy of trust will be much harder to undo.

GoHuman.com targets the underlying problems.  Change the way your world works, locally, at the level of basic human interaction.

Trust is rebuilt one handshake at a time!

Trust is rebuilt one handshake at a time!

wade This entry was posted by Wade Fransson on Wednesday, November 25th, 2009 at 6:26 AM

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  • http://www.spiritualoutreach.com John Sullivan

    Yes, I do have grave reservations. I’m not a big one for conspiracy theories but the greed of those who have enough power to manipulate economies can produce the same effect without overt conspiracy.

    After we have seen an increased aggregation of wealth among the few by convincing people to voluntarily spend beyond their means (how many ads did we hear about taking out a home equity loan to pay for a dream vacation), will whatever cash remains be sucked upward involuntarily through taxation to pay for this bailout.

    In other words, cash floated to the top until the will to spend was exhausted and the system which encouraged it could no longer sustain itself. Now the that consumers recognize and willfully chose to stop overspending, we will continue the upward movement of cash against the will and with a new system called government stimulus. Anything to prevent the redistribution of wealth a depression normally brings.

    If we got into this mess by spending money we didn’t have for things we didn’t need, how will we get out of it by spending more money we don’t have for more things we don’t need. But it sure keeps the wheels of industry going with its upward sucking sound. I sure hope I’m wrong.

  • http://www.dominosite.com Ron Bolzern

    Speaking for the UK, things are just as bad — but it’s not just the banks you can’t trust — the government is implicated as well.

    The news just broke that last year the UK government made a secret loan of £61.6 billion to two banks. The government says it was felt we shouldn’t know about this at the time because we might panic.

    That might be an acceptable excuse — I guess sometimes governments do have to keep some things secret for the public good — but since they had already loaned out £500 billion about which we DID know, they think this would make us panic?

    Since they feel we’re gullible enough NOW to buy that excuse — it’s no wonder they felt they could hide the truth THEN. So, it’s not just the banks we can’t trust — now we can’t even trust politicians. Who would have guessed?

  • http://gohuman.com wade

    John,

    You’ve hit on an unholy triad. Consumer appetites, exploited by greed, stimulated by Government.

    Please take a moment to review past blogs that implicate a form of Capitalism that enables the creation of global entities which enslave the many at the transactional level in order for the few to withdraw the value from the top. Would welcome your views on those as well.

    Thanks for your contribution to the discussion.

  • http://gohuman.com wade

    Ron,

    Glad to know we in the US aren’t alone. A crisis is a terrible thing to waste. It’s a shame if all the “powers that be” do, is invest in the systems that put them in power. But then what else can those who weren’t interested enough to take more personal responsibility for thingsexpect from them?

  • http://www.nuwavesd.com Adrian Z

    I had a vision over a year ago. The latest economic problems that we have experienced I saw as a lapping wave against my legs. In the distance was a tsunami. That tsunami was our dependancy on foreign & domestic oil.

    When the oil runs out how will food be produced & shipped? Electric batteries will not move transport trucks, Trains, ships & Jets.

    Our dependancy on oil will lead us to full on war. For whomever controls the oil will control food distribution.

    Our leaders know this. That is why 35,000 more troops will be heading to the middle east. There will be a fight for power & control.

    We are entering desperate times. Pray for wisdom.

    Wade, You are right. Who can we trust. Do our leaders, who have Ideas and plans, have our interests in mind. TRUST

    Have you check out the pickens plan. http://www.pickensplan.com/theplan/
    Could he be for real or is he out to make bank like so many.

    Whichever direction we choose we must choose wisely. “The fear of God is the begging of wisdom.”

    “If my people, which are called by my name, shall humble themselves, and pray, and seek my face, and turn from their wicked ways; then will I hear from heaven, and will forgive their sin, and will heal their land.”
    2 Chronicles 7:13-15 KJV

  • http://gohuman.com wade

    Adrian,

    Thanks for your heartfelt call for seeking divine guidance and wisdom.

    A crisis is a terrible thing to waste. The world is, indeed, entering a time of crisis, and even the powerful and mighty are perplexed.

    We will continue to push GoHuman.com as one way to make a difference.

  • http://gohuman.com/ wade

    Ron,

    Glad to know we in the US aren't alone. A crisis is a terrible thing to waste. It's a shame if all the “powers that be” do, is invest in the systems that put them in power. But then what else can those who weren't interested enough to take more personal responsibility for thingsexpect from them?