The media has been covering the Bernie Madoff spectacle but never dug deeper into what kind of business he ran. Corporations themselves, the major media has no reason to explose market makers or the other members of the Jackpot Club.
The predator pirates who run these private, elite financial entities are called in the business world, ‘Masters of the Universe’. Google it and find out how many entries there and how ruthless the players are. They leave devastation and ruin in their wake but usually laugh all the way to the bank with the extraordinary profits they make.
Although the coporate-owned media blames the borrowers instead of the architects of the sub-prime crisis, many people are now starting to blame ‘Big Business’ or the multinational corporations and the banking sector for this Greater Depression. What people don’t know is that private equity firms are more wealthy and powerful than the top ten multimationals:
"General Electric, ranked first in UNCTAD's list, controls less foreign assets and employs fewer workers overseas than either Blackstone, Carlyle Group, or Texas Pacific Group [three leading investment funds]."
Further, employment figures are also incomplete in national data, since statistical agencies still have no category for the relatively new financial institutions. "Up to one-fifth of non-public sector workers in the United Kingdom, for example, are now employed in companies controlled by private-equity funds," Rossman and Greenfield report. click here
Private equity and private investment firms borrow a lot of money from banks for their money-making, neo capitalism schemes.
When credit was easy and interest was low, many banks gave these shadow financial entities big loans with little collateral. The banks collected fees to process the loans so they were making money two ways. Three ways if they became a partner in a limited partnership.
Money poured out of banks to bankroll this new mutant form of capitalism. For example, a private equity firm raising $1 billion from elite investors as ‘collateral’ could go out and borrow $8 or 9 billion for their new ‘venture’. This is the stuff the media is not telling us because no agent for capitalism in the capitalist world wants to shed any spotlight on shadow financialization.
Saving the Jackpot.
Financialization is a relatively new term used to discuss the emergence of a new form of capitalism in which financial leverage and exotic instruments tends to override capital (equity) and in which financial markets dominate over the traditional industrial economy.
click here
Jackpot Capitalism – Financialization – is the way the elite and elite investor groups make the high returns on capital and if they should fall, private equity investors like Nancy Pelosi would be forced to invest in lower yield investments. But the banks are in trouble. They loaned the Captains of Financialization untold billions and if they fall, so will shadow financialization.
Since the beginning of the world, the socially-dominant elite have always tried to make great fortunes so they could have greater power over everyone else. Like Balzac said, “Behind every great fortune is a great crime.” For capital firms to make high returns on ‘investments’, they have to be ruthless in their pursuit for profit: They must have cheaper labor (modern slavery), cheaper materials and natural resources (cause of many wars), agreeable governments (western foreign policies ruling the world) and higher prices for higher profits.
When politicians continue to protect the financial sector over the needs of their constituents, they are protecting their portfolios for transparent investments and opaque investments. This means that the banks must be raised up from the dead by throwing money at them.
If the banks go down, so does the elite’s Private Pinocchio Profit ‘Play Lands’. It will be the end of Jackpot Capitalism as they know it because the financialized shadow sector they benefit so handsomely will go down with the banks as well. Then there will be public scrutiny and they know it.
Of course, someone will devise a new ‘creative’ way or calculus ‘formula’ to squeeze high returns for the elite but only if we continue to let them get away with it.
(Note: You can view every article as one long page if you sign up as an Advocate Member, or higher).