Inside Job

Posted: March 19, 2011 in Current Events

I saw the Academy Award winning movie, “Inside Job” last week.  I now really understand the comment made by the director at the ceremony, criticizing that not one Wall Street person has been charged in connection with the financial crises.  Wall Street’s use of speculation through hedge funds caused them to bet on the exact bad mortgages that they were peddling.  It is like gambling, where if you bet that an investment will fail, you can make money from the insurance companies.  It is like when WalMart took out life insurance policies on sick employees so that when they died the store could collect.

Now, in addition to speculating on investments and mortgages, the hedge fund speculation is moving to gasoline and food.  Oil companies are claiming that up to 30% of the gasoline price increases is the result of hedge fund speculation by Wall Street.  By betting on oil prices, they’re driving the price up and pocketing part of the increase. I’m sure that this is having an impact on Canadian gas prices as well.  Furthermore, speculation on food is doing the same thing to those prices!

“Inside Job” is a movie that everyone should see.  It is a testimony to the complete greed and short sightedness of financial organizations and banks in the U.S.  We, in Canada, are fortunate to have had governments that were not afraid to place regulations on our banks.  And, guess what…  As a result our banks emerged as the strongest in the world after the crisis.  Let that lesson not be forgotten.  Canadian Conservatives are just as just as prone to policies of deregulation.  It’s what conservatism is all about.  They are stopped by the knowledge that it is not something that the majority of Canadians would tolerate.  Let’s keep it that way.

Look at the kinds of bonuses, salaries and life styles that these financial moguls enjoy.  I’m all for high benefits when they are justified, but these people are little more than pickpockets and are going to wreck the system in due course.  These people aren’t the John Galts of the world.  They’re more like Fagin in Oliver Twist.


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