Ralph Nader On the Fed's Gamble, Failed Two Party System, Corporate Power

It would interesting to see some strong third party efforts emerge with progressive agendas.

We know that the Republicans are owned by the monied interests, and that Clinton-Obama leased out the Democrats to them.

The two parties may as well change their names to Big Oil/Defense versus Big Finance, with their only common ground being the ascent of the corporatocracy: all the rights of the individual, few of the restraints and obligations.

Reykjavík on the Thames: Hard Times Ahead for Britain

"Things fall apart; the centre cannot hold;
Mere anarchy is loosed upon the world,
The blood-dimmed tide is loosed, and everywhere
The ceremony of innocence is drowned;
The best lack all conviction, while the worst
Are full of passionate intensity."

W. B. Yeats, The Second Coming

The UK had another debate last night, and the polls shows the Conservatives and the Liberal Democrats in a surprisingly close race, with Labour under Gordon Brown continuing to slip. We will be looking for more polls (not connected in any way to Mr. Rupert Murdoch thank you) over the weekend after yesterday's televised debates.

The election seems likely to result in a 'hung Parliament' with no clear majority for any party, suggesting the possibility of a coalition government.

As a reminder to American readers, most of whom do not even know that the Brits are holding an election or how their governments are formed, the Liberal Democrats would be considered the 'reform party' in this election, what the Yanks would call a 'third party.'

And to put an edge on it, the New Stateman reports that Mervyn King suggests that the coming austerity to be imposed on UK citizens to support the City Banks will ensure that the next party in power will not be elected again for many many years.

Of course that is what the US newspapers said about the Republicans ahead of their last election, but in a short period of time Mr. Obama has managed to alienate a large share of his election base by acting more like a moderate corporate crony than a reform Democrat.

This election is important in any number of ways, but for the US it is a peek into what the future may bring in their own midterm elections in November. It is unusual for a people to go all out for a third party when they are frightened. There has not been a viable third party in the states for almost a century. But the manner in which the elections are settled in the UK brings forward some interesting possibilities.

New Statesman
Mervyn King: next government will be voted out for a generation
30 April 2010

Governor of the Bank of England warns that austerity measures will be so unpopular that the next party in power will not be voted back in.

Mervyn King's comments were revealed just hours before the final leaders' debate.

The American economist David Hale, who has known King for many years, said in an Australian television interview: "I saw the governor of the Bank of England last week when I was in London, and he told me whoever wins this election will be out of power for a whole generation because of how tough the fiscal austerity will have to be."

The Bank of England declined to comment, but confirmed that King and Hale had had a private meeting in early March.

His comments come amid growing concern that none of the three main parties has been open about the scale of spending cuts and tax rises that will be necessary.

'Third Party' Liberal Democrats Jump Into Contention in British Polls

British elections became a 'three way' race as Liberal Democrat Nick Clegg electrified audiences in the recent televised debate.

UK Election

"Many will have learned more about the three main parties' policies in 90 minutes than they had ever known before. In an election in which trust and integrity are likely to prove crucial all will have had the chance to contrast close up and under fire the personal mettle of Messrs. Cameron, Clegg and Brown."

This speaks volumes about what is likely to become a trend and perhaps a preview of the US November elections in which incumbents drop and give way to a more independent and third party candidates.

Liberal Democrat leader Nick Clegg speaks in a recent press conference about banking reform and the Goldman Sachs scandal in the States.



I am informed by a UK reader that this poll understates the push the Liberal Democrats have made, and that in other polls they trail the Tories by only two points, or are at par.

The US Financial Media Does Not Disappoint, But Will Obama?

"And this is good old Gotham,
The home of the rich and the odd.
Where Morgan talks only to Goldman,
And Goldman talks only to God."

Andrew Stanton, with compliments to
"Boston Toast" by John Collins Bossidy

The spin was running hot and heavy this morning.

The scandal was a one off, a rogue trader. The charges against Goldman are weak, nothing illegal, perhaps just immoral. But morality is not an issue with qualified investors, who should have known better. This has never happened before and is unlikely to happen again. No one forces anyone to be victimized by a fraud. They did it to themselves.

The outstanding talking head on Bloomberg TV was guest salesman Tom Brown of Second Curve Capital, who never met a Wall Street pustule he didn't wish to feed upon. He was supported eagerly by the bobbing heads of Adam Johnson and some less memorable sycophant. And of course the ineffably endearing news anchor, Betty Liu, who is an understudy for Alicia Silverstone in the Wall Street version of Clueless.

But CNBC's Steve Liesman put out a description of the scandal that was so outrageous that it made Mark Haines cough up a donut. Mark still has a conscience apparently but Steve left his at a pawn shop in Moscow. His economic arguments, along with Cramer and Kudlow, drove me away from CNBC long ago. But there is little refuge at Bloomberg anymore except in the off continent off hours, and Fox, well, it is Fox.

I expected a slime trail to appear early on, and I was not disappointed. And its a shame.

Charley Rose has a special on Goldman tonight and it should be worth watching. Charley is a journalist, and tends to show some integrity, which is an increasingly rare commodity in the American mainstream media.

Most Likely Outcome

Goldman will settle out of court, while admitting no fault, after making a great deal of noise to salvage their reputation and lay out a defense for the civil suits that will follow IF Obama does not call in the FBI and Justice to do a more thorough job of investigating the firm and their variety of dodgy deals.

The penalty will be a disgorgement of 15 million, plus a penalty of maybe 45 million. This is just the cost of doing business compared to the billions they took down in side bets like the Credit Default Swaps when the subprime card table tipped over.

The Dems will get Chris Dodd's toothless financial reform passed, and within five years at least one Wall Street firm will roll over and be 'virtually bailed out' at great cost to the taxpayers under its provisions. After he leaves office citizen Obama will say he should not have listened to Larry Summers' advice and ought to have done more to reform Wall Street, despite determined Republican opposition. hi ho

That is the usual outcome. It *could* change, Obama can change it and he doesn't need the Republicans to ask the FBI and Justice to assist the SEC in their civil case investigation to look for evidence of criminal wrongdoing including Paulson and other hedge funds under the RICO statutes. That would show us something about him, at least differently from what I think of his character now. I don't hold much hope for it given the enormous sums that Wall Street is contributing to the Democrats. But I'm prepared to be surprised.

Or it could change if the people shake off their cynicism and lethargy, and a "million person march" goes to Washington this summer, and peacefully demonstrates that business as usual is no longer acceptable. And then they put some bite into it and vote out the incumbents in the fall elections, voting heavily for third parties dedicated to real change.

That is also unlikely but I am prepared to be surprised.

But in the meantime, Europe and Asia should start counting the silverware, and hide the women and children, because the dogs of Wall Street are still on the loose, with little effective restraint.