Peter's Viewpoint

I went to see the movie Wall Street the other day out of curiosity.  Sadly it tries very hard to show what happened in a very short time frame.

From the movie, one is given the perspective from the broker’s side of the action.
Mr. Gordon Gekko played by Michael Douglas discusses greed and the dismal future for the newbie’s to the workforce.  There is a scene where Jake Moore played by Shia LaBeouf suddenly realizes that the world that they know is on the verge of destruction but the movie ends with a somewhat happy ending with the reunion of Gekko, his daughter Winnie Gekko played by Carrie Mulligan and Moore that the bubbles of life go on.

The movie also tells us that the millions that these investment bankers are not what the “game” is about but that it is about playing the game.  Tell that to the people that have lost their homes and their jobs and see how they feel.

One of the least emphasized points of the movie is that the investment bankers that are selling “air” through mediums investment market products such as CDS, ABS, Derivatives, and swaps.

A compilation of financial terrorism and the strategy and tactics

First, why do I refer to this as financial terrorist strategy and tactics?

Although there are numerous entities that are supposed to protect consumers and investors, such as the AICPA – the American Institute of Certified Public Accountants (AICPA), the Securities Investor Protection Corporation (SIPC), and the Federal Deposit Insurance Corporation (FDIC).

The latest bill is the Dodd-Frank Wall Street Reform and Consumer Protection Act but this does not and will not be effective unless all the rules for old investment and especially new investment products can be set to avoid another crisis.  As anyone can see, this is almost impossible because any new protection is always after the damage has been done.

The uncertainty that even those involved in the dealings of these investment products can be extracted from the conclusion seen in this document.

The following quotation is from that conclusion.
“However, due to the relative complexity of ABCDS and the underlying referenced entities, at this point it remains unclear whether the single name ABCDS market will ever offer the size and liquidity available in Corporate CDS.”

Wikipedia provides one of the shortest definitions regarding Investment protection and only one link to Office of the Attorney General for the state of NY.

Lastly, it is not so obvious that the final effects of investing should affect only those involved in the investing and not the everyday person who does not even know what or how these transactions will affect them.  Therefore, safeguards that guarantee protection do not exist.

It is YOU the everyday person who must insist that you be protected.

Here is my synopsis of the investment banker terrorist fact book.