Misanthropes News Roundup; It's Going to Get Worse

The Wall Street Journal carries an article that Africa now has a middle class of approximately 313 million. They're buying appiliaces, TVs , cars, disposable items that are packed in throw away packaging. Where's away? They are being added to the recently launced 1.2 billion Chineese middle class who are munching and defecating their way through the planets natural wealth.

Another article last week in the New York Times calculated that the total value of financial derivatives in play is app. $584 trillion! Some prospective would compare that figure with the app. $ 20 trillion value of all real estate in the U.S. In other words, not only have we bet all houses on the outcome of Wall Street bets on stocks through commodites and including payouts on life insurance settlements but we have leveraged the structures app 30 to 1. What could possibly go right with that bet? Commodity price surges have accounted for the riots around the world. Wall Street speculators have contributed to poverty and starvation. You see, when poor people buy wheat or gas, they buy it for one day and pay cash. But when Wall Street "investment" banks and speculators buy wheat or gas, they buy the product of entire fields for months and years to come. AND they buy it on as little as 5% margin.

Osama bin Laden was killed yesterday. Good riddance. But George W. Bush wont get indicted. Actually the little mean spirited moron is still alive, writing books and giving speeches. To recap, the latest news for misanthropes is pretty bleak. But this news does bring new converts to the ranks. Ah well, flu season is coming.

Goldman Sachs Has Perfect Trading

Goldman Sachs reported a perfect 1st quarter performance. It did not have a single losing day in 2010. It generated app. $10 billion in trading revenues. No firm has ever done that feat. That's as successful as law firm. They never lose either.But GS is supposed to be in a "risk" business. Where's the risk? Methinks that "trading" is an incorrect description of what the hyenas at Goldman do. Stealing would be more accurate.

Causes Of High Oil Prices: Politics & Market Manipulation.

When is an "oil shortage" not an oil shortage? When there is no rationing and oil is available . Why do we have high-priced oil if there is no oil shortage? We have high-priced oil because market speculators, hedge funds and commodity funds have poured billions into the oil futures market . This has driven up the price of oil and effectively distorted the relationship between actual supply and demand.

The enabling legislation that allows market manipulation was passed in December 2000. It was called the Commodities Futures Modernization Act. It provided for no oversight or regulation for the newly introduced financial derivatives called "swaps". That allowed organizations like Enron to speculate in the futures and energy markets with little or no margin and with "off books" entities. That Enron tailored legislation has been subsequently tailored for mainline investors like CALPERS (California's giant pension fund). The rest is history.

Former Texas Senator Phil Gramm was the lead Senator in introducing the legislation. He is a close advisor to Presidential hopeful John McCain. Look out! Also Wendy Gramm, who just happened to be the head of the Commodity Furures Trading Commission and Phil's wife, some 8 years earlier through an executive ruling exempted Enron from CFTC positions limits and regulations. And the rest is history.

Goldman Sachs is suspected of playing a prominent role in the oil futures price manipulation. Our last two Secretarys of the Treasury were former Goldman Sachs CEOs-Robert Rubin and Henry Paulson. Do you think that Goldman has gotten too big for the country's good?