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Tuesday, December 2, 2014 - 4:25amSanction this postReply
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I put a review of Profiting Without Producing: How Finance Exploits Us All on Amazon. Link.

 

If you like it, please click Yes.



Post 1

Tuesday, December 2, 2014 - 7:29amSanction this postReply
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Merlin:

 

Done.

 

 

I don't think the distinction into two categories is nearly close enough;  I think we need to break up 'financial capital(-ists)' into finer detail, before broadly painting any brushes.

 

The alchemy that is young - debtor, middle-aged investor, old-age pensioner is exactly how deferred present value becomes actual value in the future; that alchemy exists because it works for all involved.   There is benefit to the young-debtor (accelerated realization of value/ trade of future value for present value), benefit to the middle-aged investor(performing use of marginal excess value) and there is benefit to the old-age pensioner(successful realization of future value from past investment of excess present value.)     WIthout that alchemy, how does deferred present value get converted to an actual value in the future in any reasonable fashion?  Most present value deteriorates; it can't simply be placed in a barn for 40 years.   

 

But then, to this process, come the sharks, who find games at every opportunity.   The scavengers, the preyers.

 

The scumbags who prey on elderly independents in their living rooms,  who take their capital, buy $800/mo annuities, and sell them $200/mo annuities...but not satisfied with that, come back in two months and tell them they can convert that to a $205/mo annuity, but never mind the detail that ts will cost them 10% of principal...and who keep tag-teaming these bewildered elderly unsophisticates until they are cleaned out.    That exact process is an 'industry' in the 'financial services' industry; one which many state governments can do nothing about.  After all, the bewildered elderly are adults, not wards of the state.   Before my parents passed a few years ago, my sister and I discovered a scumbag like this hosing them down in their living room.  What I did next, I am very carefully explaining in words here, and would gladly sign an affidavit that this is exactly what I did.

 

When I learned the details barely after the fact, I had my parents abort the latest attempt at a thrashing, wrote a complaint to the annuity company involved, copied the state atty general's office, ... but not before explaining quietly to the scumbag in my parents driveway -exactly- what I would do, and how I would have it done, and who would do it, if I ever got wind that he was anywhere in the state an hour from now.  This was after my sister begged me in the living room, "Don't hurt him."   I didn't.    I took photos of him and his license plate and business card with my phone, (he'd tooled up to PA from AZ to cruise for elderly victims), I speed dialed an old associate with the first name 'Abdiehl' in Panama who runs a small firm that specialized in international business consulting,  I discussed this business matter with him in front of this scumbag, who was kind of crying at this point for some reason,  I requested a 'Tiverton Special" while looking the asshole in the eyes.    I hung up, and then I asked the asshole two questions.   "Are they going to have any problem with their Free Look in unwinding the last thrashing, which you are going to put in writing for me right now before you leave?( Free Look is a statutory opportunity to cancel a past transaction after a 'review' period; we'd aborted the current thrashing.)"  and "Will I ever see or hear about you ever again?"    He answered correctly, and then I let the SOB out of the driveway by backing my Jeep out from behind his car.    I followed him until he was on the turnpike.    Because what this asshole was doing was entirely 'legal.'   Well fuck that.   That is nothing but legal plunder.   My sister and I had long educational talk with my parents,  the 85 year old adults,  and they had no such problems for the short remainder of their years.   They passed in their early 90s.

 

That works locally, and in this world, that is what it takes.   The law, as it stands, is no help at all.   The law, as it stands, is written by and for these assholes.

 

But legal plunder in the 'financial services industry' takes all kinds of forms.    The CEO of Fed Exp wrote about this in the WSJ  several years ago.  Why is it that a company like FED EXP, who buys airplanes and hires people and provides a service, is limited by reasonable banking principles to a 15% debt to asset ratio (0.15 of assets), but an enterprise like LTCM or some other cockamamee pure scoreboard play can operate with a debt to asset ratio of 5000% (500 .0 times assets)?      That is the only way some of these odd financial plays can ever 'work.'  

 

How can that ever by justified?  I'd love to hear the explanation.   Especially when it is exactly such nonsense that the entire nation ended up backstopping. 

 

That complete nonsense in plain sight is -exactly- why much of the legal plunder 'financial services industry' is reviled, and not just by Marxists.  What no value added carcass carving scumbags are devouring in their fraternal free-for-some is unsightly beyond belief. What many of these scumbags are doing has nothing to do with building beast, it is pure carving carcass.   Their unsightly plunder has done far more to damage not only 'capitalism' in this nation but the alchemy I outlined at the start of this rant, than any fringe group of crunchy Marxists pushing their nonsense.

 

regards,

Fred



Post 2

Tuesday, December 2, 2014 - 8:00amSanction this postReply
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Merlin:

 

Hang around any local school board, and see the vultures circling with their bond refinancing deals;   buried in the details of trading old paper at the old current rates for new paper at the new current rates are mind boggling many hundreds of thousand dollars 'fees' that, if and when questioned by an incredulous board member, ooops, suddenly drop from several hundred thousand dollars to ten or twenty thousand dollars.    Hey, public money moving around, maybe nobody will notice!

 

Hey look!  A Squirrel!   You'll be saving hundreds of thousands in interest payments!   .... and maybe they won't notice the other several hundred thousand being skimmed in the details of how OPM is being moved about.

 

This is the school board unsophisticates equivalent of "I can convert your $200/mo crappy annuity into a $205/mo crappy annuity and you'll be ahead $5/mo!"

 

This is also 'an indsutry' in the 'financial services industry.'

 

All perfectly legal plunder, made possible by the fact that school board directors are spending others money in trust and not looking too closely at the details; as long as someone is telling them that their crappy $200/mo annuity is now paying them $205/mo and they can report that big win to the public, everyone is happy.  I mean, in their case, that they will be saving hundreds of thousands of dollars in interest payments if they do the deal, never mind the details.  Sure, everyone is happy; especially the vultures running off with hundreds of thousands of loose public dollars..

 

regards,

Fred



Post 3

Tuesday, December 2, 2014 - 9:02amSanction this postReply
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Well done, Fred.

 

It might be legal under statutes, but it shouldn't be because it is actually a form of fraud.  If someone was caught tricking a young kid into signing some contract, the contract should be tossed out as non-binding because the kid isn't considered able to provide informed consent.  If someone was caught tricking an adult into signing a contract by deceiving them about key elements of the contract, it should be tossed out because there was no true meeting of the minds... all legal jargon for fraud when the shark used the deficiencies purposely to loot the victim.



Post 4

Tuesday, December 2, 2014 - 9:59amSanction this postReply
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Steve:

 

I was a little harsh on the law, there; the law in PA is exactly where the 'Free Look' provision comes from;  folks who enter into these things have some period of time, like 30 days, to back out after a 'free look.'

 

The details of my full conversation with this gentlemen was a polite request for him to review his calendar and make sure the date of his previous thrashing was actually withing the 30 day free look period.   Apparently, he made a mistake on his orignal paperwork and had to amend it, which I got from him in writing, and was part of my complaint to the annuity company who knows exactly what their agent/brokers are doing and who look the other way when allowed.

 

Of course it didn't add up; but when pressed, no annuity company wants the details of what their field agent/brokers are regularly doing to the elderly in this nation made public.   I recovered some but not all of the past thrashing for my parents; the rest was expensive education.

 

The Commonwealth of PA/ State Atty General's office folks knew -exactly- the details of this transaction, and claim they can do nothing to stop it because it is open season on the elderly in this nation.

 

Things like the 'free look' law are window dressing, seldom accessed by the elderly.

 

I also told the asshole that his present line of work was dangerous, he should consider another line of work, because he never knew when he'd randomly stumble across elderly victims with an educated psychopath for a son.   I was concerned for him.

 

regards,

Fred



Post 5

Tuesday, December 2, 2014 - 10:20amSanction this postReply
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Steve:

 

I also compare that asshole with his opposite;   the agent/broker who lives in his neighborhood and deals with his neighbors; who sells them products fairly, because next month and next year, he is still their neighbor and will need to look them in the eye.  He makes an honest living selling value for value, and doesn't rape or plunder strangers.

 

That is what is wrong with these massive financial service enterprises; that guy is long gone.

 

regards,

Fred



Post 6

Tuesday, December 2, 2014 - 10:49amSanction this postReply
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Hang around any local school board, and see the vultures circling with their bond refinancing deals;   buried in the details of trading old paper at the old current rates for new paper at the new current rates are mind boggling many hundreds of thousand dollars 'fees' that, if and when questioned by an incredulous board member, ooops, suddenly drop from several hundred thousand dollars to ten or twenty thousand dollars.    Hey, public money moving around, maybe nobody will notice!

 

 

 

Notice what is key here;  the lack of a transparent marketplace and effective competition, coupled with a kind of loose discipline spending OPM.    School board bond refinancing is a little shady nook, a crevice of commerce.     A weasel magnet.

 

Hey, here is an offer to handle this refinancing of bonds for $350,000... will someone do it for $200,000?     $100,000...      $20,000?

 

 

When the -same- source instantly drops 'fees' from $200,000 to $20,000, is that a sign of a very shady niche?

 

 

Of course this is what people do; on average, we are average.  Given half a chance at getting away with it, we will rape, pillage and burn.

 

A little more transparency and competition, a little less dark alley transactions.    Pssssst.... I can save you hundreds of thousands in interest payments on your bond financing.... interested?   Just sign this, never mind the details.  You'll be a hero...

 

regards,

Fred



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Post 7

Tuesday, December 2, 2014 - 12:13pmSanction this postReply
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Fred, are you telling us that Sen. Elizabeth Warren's baby, the Consumer Financial Protection Bureau, don't protect the elderly from financial predators?



Post 8

Tuesday, December 2, 2014 - 12:42pmSanction this postReply
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Merlin:

 

Ha!   It's amazing the warmth and security that only a half a billion a year will buy.    For just a little more than $1.50 per person per year, America is buying ... er.... well....we don't mind, because its only $1.50 per person per year.

 

Lather rinse repeat, and before you know it, 330 million of us are spending close to 4000 billion/yr, or only  about 12,000/yr each for the comforts of whatever the hell her pet project is not doing for us times 8000.

 

regards,

Fred



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