JH: David, you detailed very, very well how we are constantly being ripped off. It’s a death of 1,000 cuts. Why is that? The story that we’ve gotten, for years and years and years, is that we have less regulation in order to spur competition. Ultimately, that competition was supposed to benefit consumers. What’s going wrong?
DCJ: I want more competition. Here’s what really goes on, however. We put up barriers to competition, and in fact, Wall Street has institutionalized this concept. Morningstar, they’re a big financial advice firm. They tell people that they should grade companies and decide whether to buy their stock, based on something called a “moat index.” Moat, like around a castle? A moat index asks, “What barriers has the government erected to keep anybody else from competing against that company?” Indeed, as I show in my book, you could get rich if you invest in those companies that have regulatory moats — where under the name of deregulation, we have insulated them from the rigors of the market.
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Unfortunately, what we have today is faux capitalism!
The “regulators” are in bed with that which they are supposed to “regulate”.
FDA and Big Pharma is the classic example.
The SEC, FTC, OCC, and all the other bureaucrats are a revolving door with Wall Street.
And, the politicians are like the whorehouse Madam!
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“It is a mistake to look too far ahead. Only one link of the chain of destiny can be handled at a time.”- Winston Churchill
EUROZONE COUNTRY: SURPRISE! WE’RE PUTTING AT LEAST A 6.75% TAX ON YOUR BANK DEPOSITS
Mar. 16, 2013 10:12pm Erica Ritz
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Congratulations Cyprus savers – you were just betrayed by both your politicians, and by Europe – sorry, but you are the “creeping impairments” in the game known as European bankruptcy. And so is anywhere between 6.75% and 9.9% of your money, which you were foolish enough to keep with your banks (where at least you were compensated with a savings yield of… 0%).
More importantly, as of this morning Europe has finally grasped that there is a 6.75% to 9.9% premium to holding physical cash in your mattress rather than having it stored with your local friendly insolvent bank.
Luckily Cyrpus is so “small” what just happened there will never happen anywhere else: after all in Europe nobody has ever heard of “setting an example“. Or so the thinking among Europe’s unthinking political elite goes…
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So, how do you, the average Sheeple, protect yourself?
Don’t think that this will go unnoticed around the world!
My concern is not so much a tax on “savings”; my concern is a seizure of IRA/401ks.
Figure there are only about 3k financial institutions that are “custodians”. All regulated up the wazoo by the District of Corruption.
Every so often, “trial balloons” get floated about the Gooferment taking those in exchange for an “enhanced Social Security benefit”.
So my gold and silver bullion or nickels strategy don’t look so bad now!
Sometimes capital preservation is more important than investment gain lost!
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