9/30 edition #Top10Lies :Weekly Lies by NYC Mayor @MikeBloomberg re: #OWS #OccupyWallStreet & his Wall St. cronies

NYC Mayor Michael Bloomberg makes his weekly radio address every Fridays at WOR radio station (except on certain occasions, Bloomberg avoided the press by cancelling his radio appearance – for example, about his hiding the true reasons his deputy Mayor Stephen Goldsmith’s sudden resignation – it was due to arrest & jail detention for domestic violence).  I have noticed that Bloomberg habitually lies on the radio show, he thinks the average New Yorkers are stupid and ignorant.

The List of Reasons Wall Street Executives are the Culprits of the Great Recession of 2008. And Why Our Billionaire NYC Mayor Michael Bloomberg is SO WRONG.

For the record, NYC Mayor Michael Bloomberg ranks #12 in the Forbes 400 Richest American list, his net worth is $19.5 billion.

Bloomberg lies without blinking his eyes:

Lie #1: Billionaire NYC Mayor Michael Bloomberg claims Wall St. workers only earn $50,000 per year. Check out news article below. You don’t need payroll experts to tell you that most of the multi-million dollar luxury apartments in Manhattan are bought by wealthy Wall St. bankers.

(Source: NY State Comptroller’s office) According to the NY State Comptroller’s 2011 press release, the average salary in the securities industry in 2010 grew by 16.1 percent to $361,330 which is 5.5 times higher than the average salary in the private sector of $66,120. The disparity between average salaries in the securities industry and the rest of the private sector narrowed in 2008 and 2009, but widened in 2010.

Link to the full NY State Comptroller’s 2011 press release HERE.

(Source: Reuters) According to NY State Comptroller Thomas DiNapoli, the average 2010 Wall St. cash BONUS (not the salary portion) was $128,530. What this “average bonus” means: the mailroom clerk at Wall St. firms may get $50 bonus, while the top level executives at the same Wall St. firms get MILLION Dollar bonus. The average counts the lowest, the middle and the highest – This is why Big Banks like Bank of America is charging $5 per Debit Card usage – they want to grab the extra money from little people to maintain their luxury lifestyles to make up for the drop in their 6-figure & 7-figure bonus money

Link to the full Reuters article dated Feb 23, 2011 HERE.

Highlights from the Reuters article dated Feb 23, 2011:

(Reuters) – Wall Street paid out $20.8 billion in cash bonuses in 2010, the fifth-highest amount on record, though the average payout fell 9 percent from a year earlier as financial reform drove banks to offer higher base salaries and defer more compensation.

2011 Average Pay of the S&P 500 CEO – NOTE: NONE OF THEM EARN $50,000 per year

Link to the news about the average pay of S&P 500 CEO
HERE.

Highlights from Average CEO Pay news article:

According to the Federal Reserve, U.S. corporations held a record $1.93 trillion in cash on their balance sheets in 2010. But they are not investing to expand their companies, grow the real economy or create good middle-class jobs. Corporate CEOs are literally hoarding their company’s cash—except when it comes to their own paychecks.

In 2010, Standard & Poor’s 500 Index company CEOs received, on average, $11.4 million in total compensation— a 23 percent increase in one year. Based on 299 companies’ most recent pay data for 2010, their combined total CEO pay of $3.4 billion could support 102,325 median workers’ jobs.

Lie #2: The Billionaire NYC Mayor Michael Bloomberg claims the #OccupyWallStreet protesters should NOT be assaulting Big Banks, otherwise, they will be discouraged from lend money. HELLO! The Big Banks have NOT been lending money since the 2008 Stock Market Crash and the Great Recession.

Link to the CNN Money article dated April 21, 2011 about MegaBanks flush with money but refusing to loan to people HERE.

Highlights from MegaBanks refusing to lend money out to people:

If the megabanks are so big on lending, why do their loan books keep shrinking?

The biggest U.S. banks tell us they have spent the past quarter writing loans, renewing credit lines and generally being upstanding economic citizens. Bank of America (BAC) says it provided consumers and businesses with $144 billion in credit in the first quarter, Wells Fargo (WFC) ponied up $151 billion and JPMorgan Chase (JPM), swinging for the PR fences, claims to have lent out an improbable-looking $450 billion. Yet loan balances actually shrank from a year ago at all three banks in the first quarter, just as they did at their old pal Citi (C). This at a time when the too-big-to-fail four are being drenched with new deposits.

Lie #3: The Billionaire NYC Mayor Michael Bloomberg claims Wall St. executives are not to be blamed for the Great Recession of 2008 and the resulting stock market crash.

HELLO! Here are a list of financial crimes committed by Wall St. executives that led America into the Great Recession of 2008 and the stock market crash.

1) Subprime mortgage lending by Financial Institutions (including Big Banks & Wall St. firms) solely to earn big commissions and bonus. Subprime Mortgage was one of the BIG reason for so many ordinary American to lose their homes via foreclosure & evictions. As layoffs increased from 2008 to the present time, more people become delinquent on mortgages due to loss of jobs. HELLO! Remember several hundreds of smaller banks failed & shut down by the FDIC since 2008 to the present time?

2) Wall St. executives came up with the idea to pool all the subprime mortgages and then sub-divided them into securities to be re-sold in secondary stock markets. They created acronyms called CMO, CDO that are pools of home mortgages traded in stock markets. When the market crashed in 2008 partly due to subprime mortgages, so did the derivatives of subprime mortgages (aka: the CMO, the CDO’s that are bought by Big Pension Funds via Hedge fund managers).

3) Wall St. executives also engage in reckless Naked Short-Selling (essentially, naked short-selling means – you are shorting securities without first making sure that there are willing borrowers to lend you the securities to short-sell. In other words, you are short-selling without a “safety cushion”, you are just betting that Lady Luck is on your side at all times). The Wall St. executives know they ALWAYS get bail-out by the Gov’t because they bankroll these politicians’ election campaigns.

4) Wall St. executives also sell CDS (Credit Default Swap) without any capital cushion. In Sept 2008, Lehman Brothers found itself unable to pay the claims on CDS. Quite a lot of Public Pension funds invested in hedge funds. And Hedge Funds were one of the major buyer of CDS protection. In 2008, many hedge funds found themselves stuck because their downside (real credit default) were not protected at all. The Public Pension Funds (such as teachers, police, Gov’t workers pension funds) lost a lot of money because their Pension funds invested in hedge funds that in turn bought the CDS without any capital cushion.

An analogy to what reckless Wall St. executives did: a car owner buys auto insurance from an insurance company. The car owner is under the assumption that his downside (car accident, damages) are protected in case of car accident. But in reality, the insurance company who took the insurance premium from him does not have any capital cushion to pay out any insurance claims. When the combination of Wall St. firms and hedge fund firms failing & crashing in 2008, the buyer of the CDS protection were stuck (similar to a car owner stuck because the auto insurance company actually does not have any money to cover the insurance claims).

Auto insurance companies are highly regulated to make sure they have enough capital cushion. But Wall St. firms are not highly regulated to make sure they have enough capital cushion in cash of credit default.

The only reason Wall St. executives can get away with murder is because they are major campaign donors to all the politicians in Washington DC (both Democrats & the GOP). Wall St. executives refuse to get regulated by Financial reforms.

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Filed under Occupy Wall Street, OccupyWallStreet, OWS

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