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The Rigging of the American Market


The Rigging of the American Market

Robert Reich

Much of the national debate about widening inequality focuses on whether and how much to tax the rich and redistribute their income downward.

But this debate ignores the upward redistributions going on every day, from the rest of us to the rich. These redistributions are hidden inside the market.

The only way to stop them is to prevent big corporations and Wall Street banks from rigging the market.


"So beleaguered homeowners and graduates don't have any bargaining leverage with creditors -- exactly what the financial industry wants."

The language police would point out that a homeowner has no debt, while the homebuyer (homeborrower) does. The home serves as collateral against the debt. It is not as if the banks are taking aim at the real homeowners (who they hate for their rational approach to money). Now as to liars' loans and NINJA loans, that is another serious matter. But this whole "homeowner" narrative is bullshit and distracts from the very real structural problems in the economic system.


I'd love to see Mr. Reich write about the causes... i.e. Bill Clinton for one... Also, the same rigging is going on mightily in education. Here's my book on how the elite economy crashers want our schools too. http://weaponsofmassdeception.org/

When more Americans understand the rigging of the economy there will be change. Until then, we march off to the slaughter house.


Excellent analysis, Mr. Reich. I would add two other areas of redistributed income to the list:

First, the MIC protects corporations as they go about the globe in pursuit of assets, natural resources, and labor to plunder. And with incredible sums allocated to the MIC largely for the protection of the corporate barons, all of that money that would otherwise go towards repairing the nation's declining public infrastructure, and/or preparing properties for earth changes instead is cannibalized by The Beast.

This data comes from Paul Buchheit:

"Nationally, we spend over $1 trillion per year on defense. Not just the half-trillion Pentagon budget, but another half-trillion for veterans affairs, homeland security, "contingency operations," and a variety of other miscellaneous military 'necessities.'"

The second vital area of redistributed wealth is found in the lack of regulatory frameworks through which to de-fang the Frackers, oil drillers, Monsanto fields of grain, and other PREDATORS who are stealing our children and grand-children's futures.

Having used their financial clout to acquire major political muscle instead of acting in accord with the needs of future generations, they steal, pillage, plunder, use, and abuse whatever they can get their claws on today. After all, the only thing that matters to these sociopaths is quarterly profits.

So I think these 2 more abstract arenas of asset-redistribution belong on an otherwise astute list.

Thank you, Mr. Reich for stating what IS true.


Apart from being a paid shill, can you do anything but parrot the same lines? So far, you're just attacking messengers as you move from thread to thread. This is classic pro big business pabulum designed to sully the messenger in order to keep readers away from the significant substance of the articles.

I guess you are standing in for "Wereflea" who's evidently off today.


After the worldwide consolidation is done how many corporations will remain?

There can be only one


Yes. as usual, with all Reich's articles, the analysis is sound, but he ends with...

"Which is why the rest of us must gain political power to stop the collusion, bust up the monopolies, and put an end to the rigging of the American market.

What would be REALLY helpful, however, is a a detailed blueprint stating exactly how this statement can be achieved.
Articles like this, however accurate, are useless without some practical solution that can be applied by "the rest of us"

How about it, Mr, Reich?


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I liked this article better the last 10 or so years I've read it by Dean Baker. Dean is on this stuff ALL THE TIME! Double R's trying to grab onto Dean's coattails on this one. I prefer the original at www.cepr.net.


Additionally the market rate for mortgages is determined by a multi $Trillion secondary market. The market sets the rate and the banks compete in that marketplace. Never been easier to shop for a mortgage if you have reasonable credit.
Some shoddy vilification of the big bad banks Mr. Reich.


TIAA, CalPers and all the other pension funds and money managers should then be nationalized too ?
Maybe you should move to China...


As is usual with such articles people want to rush out and assign a singular cause to the fact the system called the market is rigged.

There no individual this can be pinned on. It has been rigged in favor of the rich from day one in spite of all the paens to glory given to past Presidents and political leaders involved in the same.

George Washington was involved in the machinations of a land holding company in Ohio as well as the defrauding of soldiers of land promised to them after the Revolutionary war. Benjamin Franklin as postmaster General of Pennsylvania ensure the post office could only deliver his newspaper.

From that point on there scandal after scandal of politicians being influenced to help ensure the Rich got wealthier, from the Civil War to the building of the Railroads.

All of this long before a Federal Reserve , a Bill Clinton or a Corporations are people and money is free speech ruling from the Supreme Court.

This corruption is inherent to the system and all that the current lawmakers do is follow in a long line of corrupt persons lining their pockets as they serve the dictates of the one percent.

This is still the major problem of people like Mr Reich. He is still invested in the current system and feels a few regulations can change it for the good of the 99 percent. It simply not possible .


"Nationalize the banks, and then there wouldn't have to be any interest on houses..."
I was responding to this inane suggestion...Pension Funds, Money mgrs, Banks are all investors in the Securitized Mortgage market. It is one of the biggest markets in the world. You seem to be suggesting that everyone get a free mortgage...?
BTW a good borrower can get a 3.5% mortgage right now...is that the banks ripping off the American public ?


Because this type of people have too much and want more.

George Washington was the richest man in the 13 colonies and still saw the need to defraud ex soldiers of the lands alloted to them.

Think of your typical drug dealer. There all manner of laws on the books banning the selling of drugs. Now of course they would love to see such penalties removed BUT they will still sell drugs with it on the books.


What needs to be done first, is the long overdue constitutional amendment destroying the Supreme Courts Citizens United clusterfuck! Second is the amerikan people need to insist on a constitutional amendment making it illegal for business types in anyway to influence politicians or legislation by not allowing contact between business types and politicians nor any transfers of money between business types and politicians.There are several other changes that need to be made. But seeing that I'm on my way out the door right now, I'll have to bring them up at a latter date!