January 27, 2014
Hi I am Joyce the voice of Joyce
I wanted to thank everyone for following my Blog and tell you personally that I’ve read your letters and appreciate your kind comments of support.
I believe I have become an expert on finance reform and know that , financial reform coupled with Corporate reforms would bring more money and stability back to this Country. The money that the Middle Class lost during the Recession of 2008 didn’t evaporate , it was transferred to the Banks and Corporations who have proven to be improper custodians of our wealth.
Income inequality exits. No need to debate that topic any longer. The only subject of debate is getting jobs to people in need. We still need government for a social safety net and for the big projects that generate jobs. But , government stimulus without accountability and responsibility is useless. We need accountability on all levels to make sure jobs are created and money flows back to the Middle Class.
Wake up America. It’s morning in America. Let’s start being involved in the solution to our problems. If we never start we’ll never get there. Let’s not wait any longer. it’s morning in America .
January 27, 2014
Hi: I wanted to introduce you to the Joyce behind the voice of Joyce
I exist. I”‘m passionate about finance , politics , our world. , My kids and my grandchildren .
I am a real person with real desires. One of them is finding the solutions to reinstating the Middle class. I hope to teach kindness and mindfulness in our society , to better appreciate the beauty of our fellow man and the beauty that surrounds us.
Look around you. I say , ” sweat the little stuff “, but join in to solve the big picture. The little stuff is unimportant. Our world matters, our kids and grandchildren matter,. We want, what our parents wanted for us, a better day in America. A better life for our family.
Wake up my dear readers . It’s morning in America, smell the roses and listen to the clarion call of Chris Botti on the horn!
More posts to follow as I revisit my archives and collate those posts , along with new ideas to chart the way to our new day. All the best Joyce
January 19, 2014
Hi all: I’ve just published 4 Blogs on Financial Reform and my solution to decreasing inequality. If we start with financial reform , we will end up with jobs.
Please send me your concepts for job creation as well! Or personal stories to be shared.
I’m willing to research and report back on any ideas you may have.
Wishing you the best of Sunday’s. Joyce
January 18, 2014
NYC Financial Capital of the World
According to Thomas Hoenig, reporting in the FT 8/20/13, a Vice Chairman of the FDIC, ” recent research found no evidence that higher bank capital leads to lower volumes of loans over the long run. ” Given the magnitude of the Financial Crisis of 2008; does anyone really believe that greater capitalization of the Banks would not have helped stave off the “Collapse of our Monetary system ” and more importantly prevented the collapse of our Middle Class way of life, through “our wealth destruction.”
- What would we be prepared to propose if we could have gone back in time. Thomas Hoenig has one answer, Bank Capitalization. The same response as Peter Orsag. Again, we must ask how much? And given the Culture of Greed, we can’t trust we must verify total bank assets, “on and off ” their balance sheets. Remember, the same player’s circle the Globe, the culture is pandemic. Can the culture change? Not while “The Wolves of Wall Street” are alive and doing “just fine”. Unless we have Regulations, a Bill , that holds Bankers and Bank wannabees accountable and responsible, otherwise, “The Wolves of Wall Street ” will continue to survive at everyone’s expense.
- According to Mortgage News Daily , 5/3/2010, Total loans among all Banks amounted to $7.28 Trillion while total deposits were $9.22 Trillion. Banks are operating at a Loan to Deposit Ratio of 79%? WOW! As a small business owner, I know you can’t make money at that level. For years my business was solvent and profitable when debts were at 25- 30% of revenue. Not more…. When the debt level approaches 50% you break even. Beyond that you’re operating in a deficit. This is not “rocket science”. ( To be fair, we aren’t considering the “other investments” Banks are making. That’s part of the problem, what % of the other assets are 100% liquid like deposits? )
- It certainly looks like we made the “Banking instruments” obscure in order to prevent any analysis of ” real” Bank assets and liabilities. No more! TBTF, has real meaning for the Middle Class, it destroyed our way of life. Lesson learned.
- I like the “ring” of owner equity in Banking. It is a cushion against risk. Banks could and should be taking in deposits and lending against those deposits. That’s the Bank’s business. Low risk. Necessary in a world of “creative banking, having the latest micro second trading capacity.”
- Now that Basel 3 is retrenching in the wake of lobbyists and Banks, America has a chance to lead the world in Monetary stability. Only a fool would stay away from a well capitalized Bank or flee from strength?
In a Democracy, we have a choice when Politics affects us!
January 18, 2014
This article in the NY Times DealBook captured my attention. /” Overhaul of Israel’s economy has lessons for the United States. ” There are lessons to be learned, though the scale of Israel’s problem never reached the level of inequality seen in the United States; it is a cautionary tale.
- “Per Steven Davidoff, of the Times, American’s may talk about income inequality, but Israel has done something about it. Yes, the mass protests of 2011 helped. However, the Press and the Knesset were already concerned about income inequality in 2008, when they formed a Committee, to look into the Corporate Pyramids and their influence on the Israeli economy. By 2012, along with a sustained campaign by Haaretz, a leading “liberal” newspaper in Israel, the government Committee agreed, to break up the Corporate Pyramids. (They were Large Corporations having subsidiaries , whose subsidiaries formed their own set of corporations, like a Pyramid, destroying free competition in it’s path.) The Committee also recommended the prohibition of significant cross holdings between Financial and non Financial groups.
- For better understanding, a corporation, like GE, could no longer “keep” it’s financial unit , which holds $500 Billion in assets. The result would be that the Pyramids could no longer fund themselves, using their access to cheap financing to give themselves an unfair advantage over their competitors. It also insured, that the Financial Institutions did not bring down entire corporate groups if they imploded.
- A “Bill” was introduced to the Knesset amongst legal wrangling, lobbying and threats , the conservative government of Bibi Netanyahu supported the legislation. The head of Israel’s central bank, Stanley Fischer , supported the Final Bill.( He is now the leading candidate for Vice Chairman of the Federal Reserve in the USA. )
Was this the most comprehensive bill to pass the Knesset? No. But it was enough to garner populist support and the votes in support of dramatic change in Israel’s Economic policy. The Committee’s recommendations “to break up the Pyramids and separate significant Financial and non financial companies became law.”
A cautionary tale, loosely transcribed from the original. With a single bill and several large changes in Corporate law, Israel is looking toward overhauling it’s economy and hopefully reducing income inequality.
What would this mean for America? Go back to 1990 when the 5 biggest Bank’s controlled only 9.67% of the Economy rather then 44%. It seems, in a Democracy, where there is a will to decrease inequality, change occurs. We can do it, and hopefully, we won’t wait for another painful lesson like 2008? We don’t want Banks to implode again before we take action. Politics effects us! We have choices to make.