By Pam Martens and Russ Martens: August 1, 2016 According to the National Bureau of Economic Research, the Great Recession (that was brought on by the implosion of Wall Street) ended in June 2009. What we’ve been in since that time is supposed to be the “recovery” part of the cycle. But for tens of millions of Americans, it has been hard to tell the recovery from the crisis in terms wealth accumulation, wage growth, or ability to earn a decent rate of interest on savings. On Friday the Commerce Department released second quarter Gross Domestic Product data, showing that the U.S. economy grew at a 1.2 percent annual rate. That tepid number came on the heels of an anemic 0.8 percent rate of GDP growth for the first quarter. It has now been more than a decade since the U.S. economy grew at an annualized rate of 3 percent … Continue reading →

By Pam Martens and Russ Martens: July 29, 2016 The Wall Street Journal reported yesterday that the U.S. Department of Justice in Washington D.C. and its U.S. Attorney’s office in Manhattan “have launched a criminal investigation into whether individuals at Mossack Fonseca & Co., the law firm at the center of the ‘Panama Papers’ scandal, knowingly helped its clients launder money or evade taxes…” That investigation, if conducted thoroughly and without improper interference, could turn up the heat on some powerful Wall Street players. On May 16 Wall Street On Parade broke the story that the Miami office of Citigroup’s Private Bank at 201 South Biscayne Blvd. was the listed address for dozens of offshore companies whose agent is Mossack Fonseca. (See graph below.) Our information was obtained from a search of the public database made available by the International Consortium of Investigative Journalists (ICIJ), which received more than 11.5 million … Continue reading →

By Pam Martens and Russ Martens: July 28, 2016  Senator Elizabeth Warren, during her speech at the Democratic National Convention in Philadelphia on Monday night, made the following statement: “Here’s the thing: America isn’t going broke. The stock market is breaking records. Corporate profits are at all-time highs. CEOs make tens of millions of dollars. There’s lots of wealth in America, but it isn’t trickling down to hard-working families like yours.” It is true that the stock market has been setting new record highs as measured by the Standard and Poor’s 500 and Dow Jones Industrial Average but that’s primarily because corporations are going into deeper debt and using the money to buy back their own stock. This is happening at a time of a scary profits recession for corporate America. Not only are profits not setting records, but profits in the S&P 500 have declined year-over-year for the past … Continue reading →

By Pam Martens and Russ Martens: July 27, 2016 It had been in the planning for weeks and it was executed as flawlessly as the DNC’s own strategy to steal the election for Hillary Clinton. As Clinton’s nomination to serve as the presidential candidate was confirmed at the Democratic National Convention yesterday, hundreds of Senator Bernie Sanders’ delegates staged a walkout protest, leaving large swaths of the seats in the convention center empty. Waving signs that read “The Revolution Continues,” “A Future to Believe In,” “No TPP,” and chanting “This is what democracy looks like,” the marchers peacefully left the convention center and rallied outside. Numerous protestors wore tape or material over their mouths to protest how the DNC’s actions had illegally silenced their voices. (See second video below.) Several hundred Sanders’ supporters also took over part of the media tent for the convention for a period of time. Shyla … Continue reading →

By Pam Martens and Russ Martens: July 26, 2016 The problem with conspiracy theorists is that, quite frequently, the theorists lack adequate imagination. That seems to be the case when it comes to the Democratic National Committee’s behind-the-scenes machinations to muscle Hillary Clinton into the White House while plotting against her main challenger, Bernie Sanders. That conclusion stems from the trove of 20,000 DNC emails dumped into the public sphere by Wikileaks last Friday. The leaked emails have cost Debbie Wasserman Schultz her job as Chair of the DNC but other top DNC officials captured in devious plots against Sanders in the email exchanges still have their jobs – or at least no official firings have been announced. This makes the conspiracies seem more like a DNC business model. The DNC’s own charter demands that it treat all Democratic primary candidates fairly and impartially, but top DNC officials made a … Continue reading →

By Pam Martens and Russ Martens: July 25, 2016 First it was Hillary Clinton handling Top Secret national security matters in emails with the caution of a drunken sailor. Now it’s emails leaked by Wikileaks showing that key officials at the Democratic National Committee (DNC) attempted to derail the Democratic campaign of Bernie Sanders in direct violation of the DNC’s own Charter.  Loose email lips are sinking a lot of ships in the Democratic corridors of power. And a lot more emails and depositions may be coming as a class action lawsuit filed in Federal Court gets underway. Article 5, Section 4 of the DNC Charter mandates the following: “The Chairperson shall be responsible for ensuring that the national officers and staff of the Democratic National Committee maintain impartiality and evenhandedness during the Democratic Party Presidential nominating process.” Instead, according to more than 20,000 DNC emails exposed by Wikileaks on … Continue reading →

By Pam Martens and Russ Martens: July 22, 2016 A mere three months after JPMorgan Chase and three of its competitors (Citicorp, Barclays and the Royal Bank of Scotland) pleaded guilty to a felony charge of conspiring to rig foreign currency trading and paid criminal fines totaling over $2.5 billion, the CEO of JPMorgan Chase, Jamie Dimon, began meeting in secret with his competitors in the asset management field. On February 1 of this year, the Financial Times reported that “secret summits” had been held beginning in August 2015 between “asset management bosses” including Jamie Dimon, Abby Johnson of Fidelity, Larry Fink of BlackRock, and Tim Armour of Capital Group. The article went on to report that Dimon and Warren Buffett had convened the sessions at JPMorgan’s headquarters in New York to discuss “a statement of best practice on corporate governance.” Secret meetings between competitors, regardless of what they are … Continue reading →

By Pam Martens and Russ Martens: July 21, 2016 On July 14, when America’s biggest bank by assets reported its second quarter earnings, this headline ran at the New York Times: “JPMorgan Chase Has Strong Quarter as Earnings Top Estimates.” CNBC, a unit of NBCUniversal, used the same criteria in its headlines to report the earnings of Citigroup, Bank of America and Morgan Stanley — putting a positive spin in the headline because the earnings had topped what analysts were expecting – rather than the far more meaningful, and traditional, measure of whether earnings had beaten the same quarter a year earlier. CNBC’s headlines read: Citigroup earnings handily top Wall Street expectations: CNBC-July 15, 2016 Bank of America earnings top expectations: CNBC-July 18, 2016 Morgan Stanley solidly beats earnings expectations: CNBC-July 20, 2016 This is hubris of the highest order. Publicly traded companies simply guide research analysts toward lowered expectations on their upcoming quarterly earnings so that the … Continue reading →

By Pam Martens: July 20, 2016 Richard Cordray and the Federal agency he heads, the Consumer Financial Protection Bureau (CFPB), have been in the cross hairs of right wing Republicans and the corporations they front for since the agency opened its doors in 2011 to confront the abuses exposed in the financial crisis of 2008. The agency’s work to level the playing field for all Americans and stop the vicious wealth transfer system that the deregulation era of the 90s has unleashed on the financially unsophisticated has fueled unprecedented backlash. During the Republican Presidential debate on November 10 of last year, a corporate-funded front group, the American Action Network, with ties to the Koch brothers, repeatedly ran an advertisement portraying the CFPB as a communist group. (See our detailed report here.) The CFPB presents multiple threats to the financial looters. The CFPB has made it easy for consumers to file … Continue reading →

By Pam Martens and Russ Martens: July 19, 2016 Breaking up the dangerous banks on Wall Street that are gambling with their taxpayer-backstopped insured deposits by restoring the Glass-Steagall Act is now a part of the newly adopted platforms of both the Democrat and Republican parties. Under a restored Glass-Steagall Act, banks holding insured deposits would not be allowed to affiliate with Wall Street investment banks and brokerage firms that regularly underwrite risky securities and engage in trillions of dollars of derivative gambles. It would effectively put an end to the idea that these complex banks are too-big-to-fail because the life savings of small savers holding insured deposits in the bank would be at risk. Bernie Sanders’ supporters pushed the Democratic Party to include the provision in its platform. Today’s media spin is that Trump & Company added it in hopes of picking up some Sanders’ supporters who have vowed … Continue reading →