By Pam Martens: November 9, 2012 Millions of Americans have no idea that there is a world of difference between money market accounts and money market funds. Two extremely critical words define the difference: FDIC insurance.  Money market accounts are offered by FDIC insured banks and extend the Federal Deposit Insurance Corporation (FDIC) umbrella of protection to the accounts.  Money market funds are a mutual fund where the values of the pooled investments can fluctuate and the investor is not insured against loss.  Now that banks and brokerage firms are housed under one parent since the repeal of the Glass-Steagall Act, both types of accounts may be offered to the customer by the firm and the distinction is not always spelled out.  The confusion seems to be intentionally aided by the fact that money market funds are permitted to perpetually price at a stable $1 per share, making it appear that the principal … Continue reading →

By Pam Martens: November 8, 2012 Wall Street was at war with itself over which presidential candidate received its financial backing. The Wall Street firms were funneling lopsided financial support to Mitt Romney, but the largest Wall Street law firms were doing just the opposite: they were pumping money into the Obama campaign, sometimes 10 times more than they bestowed on Romney. As the accompanying graphic illustrates, the top five contributors to Romney were all Wall Street firms. (See our reporting here for the lopsided support given to President Obama by the Wall Street law firms.) Now that the election returns are in and President Obama has emerged the winner, the question remains: why would the largest Wall Street law firms risk alienating their largest Wall Street clients by financing the candidate that Wall Street wanted to unseat, along with his Dodd-Frank financial reform legislation. The answer seems clear enough: … Continue reading →

Following is the full transcript of President Obama’s victory speech, delivered at the McCormick Convention Center in Chicago. President Obama: Tonight, more than 200 years after a former colony won the right to determine its own destiny, the task of perfecting our union moves forward. It moves forward because of you. It moves forward because you reaffirmed the spirit that has triumphed over war and depression, the spirit that has lifted this country from the depths of despair to the great heights of hope; the belief that while each of us will pursue our own individual dreams, we are an American family, and we rise or fall together as one nation and as one people. Tonight, in this election, you, the American people, reminded us that while our road has been hard, while our journey has been long, we have picked ourselves up, we have fought our way back, and we … Continue reading →

By Pam Martens: November 7, 2012 America woke up this morning to the news that President Obama had been reelected to a second term, despite the 29 electoral votes in Florida still being too close to call for either candidate. As for Congress, it will remain split, with Republicans controlling the House and Democrats in charge in the Senate. Florida was still counting votes due to a heavy turnout in Miami-Dade County which saw people still in line to vote after midnight.  About 38 percent of Florida voters, or roughly 4.5 million people, had cast their ballots in early voting before the polls opened on Tuesday.  Fears that the Republican operation, Strategic Allied Consulting, run by Arizona Republican Nathan Sproul, would play a corrupting role in the election in Florida did not appear to pan out.  That could be, however, because of the early detection of fraudulent voter registration forms in … Continue reading →

By Pam Martens: November 6, 2012  This will be the first Presidential election since the U.S. Supreme Court decision, Citizens United v. Federal Election Commission, gave corporations the ability to spend unlimited sums in our elections, effectively turning the race to the White House into a competition between corporate propaganda (over corporate-owned airwaves) and the will of the people.  There is no clearer proof that this is the case than two foreign polls.  People who have not been similarly brainwashed by corporate money would give a landslide victory to President Obama.  The BBC had GlobeScan/PIPA conduct a poll from July 3 to September 3, 2012 in 21 countries.  President Obama was the choice by 50 percent while Mitt Romney received a meager 9 percent.  The balance expressed no preference.  This was a large poll, encompassing 21,797 people.  A separate poll conducted for UPI by Win-Gallup International in September 2012 among 30 … Continue reading →

By Pam Martens and Russ Martens: November 5, 2012  The cries for assistance from desperate families and elderly in the flood ravaged areas of the Rockaways and Staten Island could not be met by the already overwhelmed New York City responders and volunteers, and so the Marines have now stepped in to pump basements with their sophisticated equipment and provide other relief.  Likewise, New York City did not possess the ability to get the flooded subway tunnels pumped out in a reasonable amount of time – leaving the danger that the salt water would further eat away at the electrical systems.  The Army Corps of Engineers stepped in with high tech equipment they used during Hurricane Katrina in New Orleans and had the job completed within a few days.  People whose homes collapsed like crumpled match-sticks under a tidal surge as high in some places as 14.8 feet, are receiving … Continue reading →

By Pam Martens: November 2, 2012  For three days, Mayor Michael Bloomberg has held multiple press conferences characterizing deaths from Hurricane Sandy as stepping on a downed power wire or being crushed by a fallen tree.  All the while, as we reported three days ago, the facts proved unequivocally that the vast majority of deaths resulted from drowning.  Yesterday, the New York Times made the sensible decision to stop believing what was coming out of the Mayor’s press conferences and called the medical examiner.  This is what the Times then reported:  “Three days after the storm hit New York, it is becoming clear how most victims died. ‘The majority of them drowned,’ said Ellen Borakove, a spokeswoman for the medical examiner’s office.”  As of early this morning, there are now a reported 21 deaths from the hurricane on Staten Island, more than 50 percent of the New York City total … Continue reading →

By Pam Martens: November 1, 2012  Despite what the paper of record would have you believe, Hurricane Sandy was not about killer trees.  Hurricane Sandy, like Hurricane Katrina, was about killer water.  The New York Times put it this way on Tuesday, before the death toll had climbed even higher: “There were 22 deaths reported in New York City, where the toll was heaviest, and 5 more fatalities elsewhere in the state. Most of all, it was the trees. Uprooted or cracked by the furious winds, they became weapons that flattened cars, houses and pedestrians.”  Here’s the way those last two sentences should have read: “Most of all, it was the wall of water. Giant storm surges rushing over the sea walls, turning roads into instant rivers replete with white caps that pulled two toddlers from their mother’s arms and sent many more to a watery grave in their basements.”  … Continue reading →

By Pam Martens: October 31, 2012  Yesterday, New York City Mayor Michael Bloomberg held two press conferences to provide updates on the aftermath of Hurricane Sandy.  At both press conferences, the nature of the deaths from the storm in New York City received short shrift.  The Mayor appeared to be saying to reporters, nothing out of the ordinary there — fallen tree, downed power wire– move along.  But then early this morning came the news that Long Island’s Nassau and Suffolk counties, with a population of almost 3 million, had just 4 deaths from the storm while New York City, with a population of roughly 8 million, had a striking 22 deaths from the storm, according to the NYPD.  (The Mayor put the figure at 18 at his second press conference yesterday.)  The New York Times ran a detailed story on storm-related deaths in New York City yesterday, going into … Continue reading →

By Pam Martens: October 30, 2012 At 6 a.m., New York Governor Andrew Cuomo reported that there are 1,943,572 New Yorkers without power.  Con Ed is reporting that power is out in lower Manhattan below 39th Street with an estimated 250,000 people in Manhattan without power.  The MTA is reporting massive flooding in New York City subways and tunnels.  New York City is urging all residents to remain indoors, avoid use of elevators and stay away from windows as a precaution against flying debris. The following updates have been posted by New York City:  Alternate Side Parking regulations (street cleaning) will be suspended citywide on Tuesday, 10/30. Payment at parking meters is also suspended throughout the city on Tuesday, 10/30. The MTA has shut down all subway, bus, and commuter railroad service and likely will remain closed throughout Tuesday.  The Staten Island Ferry service is suspended until further notice. East River … Continue reading →