May 8th 2014 banks & educ., analyst Q & Ans; GFC part 1...

The agenda presented by the club secretary Mr. D. Brooke
Subjects presented in order

Introduction

1. Recorded Introduction:
Link to alternative site for immediate play [ASC Audio_3 05/14]

Edit. Tape Intro. Don 05/14
Present 1.

First Part: Student education debt, a problem tax payers share with other developed countries.  Because of  an over supply of graduates the job market now offers lower pay.  Lower interest rates coupled to inflation (higher consumer good prices) accordingly serves the banks well.Told of the collapse of "triple A rated" investments.  Bond issues by governments in various jurisdictions provide tax advantages to holders.  However a down side to excessive bond promotion caused a Caribbean island to become heavily indebted, to the extent of economic collapse.A drug Zohydro (hydrocodone) has been questioned as to efficacy.  Beware youth ... said the commentator, psychedelics caused the "Mi Lie" massacre in Vietnam ...

Second part: A investment analyst questioned about China, Europe and Russia in respect of gold -- both China and Russia big buyers -- and should be better placed if/when the "bubble bursts", economic crises results by degree.  Brought on by excessive consumption, countries highly leveraged without gold reserve suffer by degree.  Within the euro. block legislation enacted, a contingency for "Bail Ins".The interviewed elaborates on why price of the same commodities differ in geographically separated locations.  Asked about real estate (land and buildings), considered ranked with bonds and paper money as a asset class; though tangible like most commodities, the economic circumstance -- where the Q and Ans. took place -- prompted considered re-positioning.  

Link to alternative site for immediate play of discussion following. [Edit. 712_0080 05/14]

Edit. 712_0080 05/14  

Present 2.

Members etc. present, undoubtedly given better insight into the financial and cultural destruction of a North Atlantic island, caused by economic adaption imported from without. Attention then to America, New York and Wall Street. Numerous approaches made to people for comment, many internationally known names associated with finance and government. Others not implicated in what is termed the GFC debacle, but positioned to express criticism of administrations during the presidencies of Messrs. Reagan, Clinton and later Mr. Bush.  
A history of money lending institutions from years prior to WW11 the beginning of the 21st century.  The latter end of this period Investment and Loan Co's tendered for the general public funding, like never before.  As enterprise in common, exponentially grew both in capital and human resource, so did embezzlement, one grand scale case cited.  In America people in high places moved between finance institutions and government positions from the mid 80's to the late 90's.  Three named (but not herein cited) protagonists given special attention during this part of the documentary, promoted previous dubious trends, as one invited commentator said " ... a capturing of the political system".

So from embezzlement next the documentary cites money laundering and financial deals apparently contrary to US law.  American (- international) corporations ( with global representation ) have paid large amount of dollars(sic) for infringements, but according to narration, they (corporations involved) refuse to admit culpability.

Before conclusion of this part to the doco. -

•   Derivatives, the marketing of them escape government intervention.

•   Followed by the introduction during the first years of the 21st century of CDO's.  The vehicle whereby  derivatives, loans and later sub-prime loans/mortgages were packaged and on-sold; Edit. Quite an elaborate(?!?!) construct, as pedagogue illustrated to screen.      

Link to alternative site for immediate play of discussion following.
     
Edit. 712_0081 05/14
CONCLUSION with a vote of thanks for the secretary evenings events.