Saturday 22 October 2011
The Occupy movement has been criticized of not having clear goals or a clear set of demands. In response to that criticism, Adbusters came up with one possible proposal, the Robin Hood Tax. A tiny tax on financial transactions on Wall Street that would encourage traders to stop jumping back and forth between investments so rapidly which creates such unstable speculation that would be enough money to fund every social program imaginable. Not a bad idea.
Personally, I'm not big on commission fees. I like it like how Manulife lets you diversify and move your RRSP investments between mutual funds without commission charges. I see commission charges as sharks exploiting investors. Yet taxing the sharks does seem palatable.
Nevertheless, my concern isn't taking from the rich and giving to the poor. My concern is the huge amount of investment fraud that goes on in the market that is completely unregulated. Madoff claimed he was just one of many fraudsters on Wall Street. My main concern is how deregulation enables investment fraud.
One would normally think that reducing red tape to let business thrive is a good thing. However, in practice all we have seen is that reducing regulation and red tape has simply made it easier for white collar criminals to commit investment fraud. When Reagan deregulated the banks, that opened the flood gates of corruption wide open.
George Bush's son Neil was a director of a bank in Colorado during the savings and loans scandal in the /80's. He used his position on the banks BOD to approve a loan for one of the family's fake oil companies that were over inflated and ripped people off. When the company paid his salary and ran off with the money, it defaulted on the bank loan which was bailed out with tax dollars. Al Martin claims the Bush family had many of these fake Texas oil well companies and committed extensive amount of fraud through them in Texas which helped collapse Mcorp and create the Savings and loan crisis in the /80's.
Evidently they used that practice operation in Texas on the rest of the country years later with the promise that the banks would be bailed out with tax dollars and that they were. My concerns are banking fraud, real estate fraud and investment fraud. Vancouver doesn't have a stock exchange any more. We used to. Vancouver is a big city not to have a stock exchange. The reason it was disbanded was because the media found out how corrupt it was. It was full of fake pump and dump stocks and they simply couldn't control the fraud.