Why are all those people demonstrating? The reason is that Wall Street is raping Main Street.
Let us take an example: In the mid-nineties a wealthy corporate executive wanted to sell some stock. But, he did not want to pay the capital gains tax that would be due on consummation of the sale. So, Wall Street devised a “swap” for him. He received cash for the stock, but, technically, retained ownership. The “buyers” received all of the dividends that the stocks received, and all of the price increases, if any. The executive paid NO capital gains tax. They win, we lose.
That was legal. The illegal deals usually are not punished, but, when they are, it is usually a fine or settlement that is a miniscule percentage of the ill-gotten gains.
Imagine if you robbed a bank in Lakeport and made off with $100,000. The police catch you, but, they make a deal with you that if you give back $10,000, you won”t spend a day in jail. There would certainly be a run on stockings.
Congress is well aware of the effect of the decades of de-regulation, and experts have testified before congress and warned of the dangers and predicted the consequences. So, why has congress done nothing?
Congress has not acted to regulate the financial sector (Wall Street) because they are paid not to by lobbyists. And, with the recent Supreme Court decision, citizens united, it will only get worse.
That decision said that a corporation is a person, and that money is a form of speech, and thus protected by the First Amendment. In other words, corporations can give as much as they want to influence government.
So, that is why people are demonstrating, not just in D.C., but all over the country, including Lake County. That is why people are marching. Why aren”t you?
Nelson Strasser
Lakeport
