The Economy

Wall Street to “Securitize” Life Insurance Policies

For the last few decades, financial capital has trumped the “real economy” as far as making money is concerned. Given that they don’t produce any actual goods to exchange, Wall Street has to use “financial wizardry” to come up with its large profits. In other words, they have to continue to reinvent the shell game.

Income Gap Widest Since 1917

According to a much publicized study by University of California-Berkeley economist Emanuel Saez, the income gap between the rich and poor is at its greatest level since 1917. The top 10 percent of Americans now receive nearly 50 percent of all income. According to Saez, “Indeed, the top decile share in 2007 is equal to 49.7 percent, a level higher than any other year since 1917 and even surpasses 1928, the peak of stock market bubble in the ‘roaring’ 1920s.”

Worried About the Future?

ForeclosureAccording to a recent CNN/Research Corp. national poll, only half of all U.S. homeowners are confident they can make their mortgage payments and less than forty percent are confident they can maintain their standard of living in the next year. Moreover, just one in four parents of children less than eighteen feel they can afford their child’s college education, and a scant one in five Americans who have yet to retire are very confident they’ll be able to save enough money to do so comfortably.