Financial Justice Ideas and Issues

New Orleans     The big just seem to keep getting bigger even in the midst of the huge sub-prime mortgage implosion roiling not only the real estate markets, but also the hope system of capital worldwide involving not only companies, but even countries. China had to put out a statement a couple of days ago that they were holding $8-9 Billion worth of sub-prime securities.

In the beginning the slightly bigger fish in the market swim all swore that they were going to suck up the smaller fish. New Century said that a year ago, remember them? Countrywide said that only a couple of months ago.

None of this turned out to be true. Countrywide has watched its stock plummet in half of course and every time their CEO opens his mouth these days, it seems their stock goes down, and he panics the rest of the market. New Century of course will belly up and down to the bottom of the sea.

This week though we simply had another lesson in the way of capital and its consolidation, because the real outcome in this crises as in so many is that the big simply got bigger, but not when one looks at the little fish, but when one measures the whales. First, Bank of America buys a huge piece of Countrywide to keep them afloat and restore their credit. Gulp! Then, Citi announces today that it is also swallowing whole all of what is left of Ameriquest (and its Argent subsidiary). Gulp! Gulp!

I guess that’s the way capital works.

Now we have to see if the big will in fact be better or if we can make them better.

That’s how we work!