How the Wall Street Government Rules

Larry H. Summers, one of Obama’s top economic advisers among other White House staff, recently released a personal financial disclosure form. The Obama White House is making thousands of millions dollars from Wall Street for themselves. Simmers earned US$5.2 million as compensation from D.E. Shaw in 2008, US$2.7 million as speaking fees for several Wall Street firms, US$45,000 for an appearance in meetings, US$135,000 to visit Goldman Sachs for a day, and many such entries in the disclosure form accumulate to stupendous figures for a single year. When Obama’s White House is called a Wall Street government, there are reasons.

Most of these payments made were made to Summers in around April last year when either Obama or Clinton were expected to be in the White House this year. If any of the two would win the election, it was expected that Larry H. Summers would be in the very same position he is in now, the single most influential financial position in the US government. Some of the remittances indicated in the disclosure form (like the US$45, 000) were received only 8 days to Obama’s election. While it is wrong and illegal to receive a bribe so as to influence government decisions, what the Obama administration did was to receive the bribe in advance, before assuming office.

Obama first considered Larry H. Summers for the post of Treasury Secretary just before naming him as his topmost economics advisers. This change of heart ensured that

Read more

Contextualizing the Risks of Money Markets

Over the years, money market funds have been the safest means of investing some cash for a long term portfolio entry or for those who want a safe place to hold their money. But recent global developments, with the world economy sagging on its knees, experts have started to point out that there are risks in money markets too. This has shed the previous thoughtline that money markets are a risk-free investment avenue. You can no longer hold it for granted that your investment is safe, just because you are in the money markets. In fact, the US Securities and Exchange Commission (SEC) decrees that while investor losses entrusted to money market funds are rare, they are very possible.

However, just as they have become risky to an extent, they have also gained on the rate of interests and profits over the last one decade. Contemporary money markets can triple your initial capital within a few years, and give an impetus to real wealth. Similarly though, just as they are profitable, they can wreck you financially in just a few hours of mishap. It is wise therefore, that before you load your cash into money markets you ensure that you know not only what they are but also how they work. This will facilitate you to know which money market risks to take and which ones are too dear or foolish to take.

Let us begin by understanding what money markets refer to, as a concept. Simply said, money market funds are

Read more