A month ago, I made a prediction: that in less than 12 months, there would be riots and protests in every major city in Europe, in America and all over the globe.
The protests that started as “Occupy Wall Street” are not just about Wall Street. It is about all financial institutions (which is what Wall Street really is).
The protests are not, in my opinion, politically motivated or against capitalism. They are against corruption and corporate irresponsibility – which is the real threat to our freedom and democracy.
A False Democracy
People are frustrated. Americans are beginning to realise that there is no true democracy.
There is no democracy when it does not matter who you vote for, left or right, republican or democrat, when our elected leader or governments are nothing but slaves to Goldman Sachs and J.P. Morgan.
There is no democracy when financial institutions destroyed the economy three years ago, then filled their own pockets with public bailout money and then got away with it.
The World Banks are the real criminals here. Not the protesters.
The So-called Financial “Experts”
A few weeks ago, some papers sought to attack and discredit me by saying that I am not a banker or economist and therefore I am not an “expert”.
Let’s get one thing straight. I am not a banker or economist, and that is good thing! In fact, that gives me an advantage (perhaps they should hire me right away). After all, it was the “experts” – the bankers and the economists – who created this financial crisis in the first place. We are in this mess because of the actions of the so-called “experts”.
For most people, their pensions are down this year. These experts have lost you money. Your fund manager gets to be a hero and be paid a fat bonus just because he has not done worse than the index.
At the time of writing the S&Ps in America are down almost 10% this year and the FTSE about the same.
So your fund manager gets to sip champagne on your money! How do you feel about that? What kind of system is this? That is what the experts are doing. They have let you down, they have let me down, they have let their country down, they have let everybody down.
Invest in Yourself – Not the Markets
Since my first interview with the BBC, I have been asked many times what we should do to protect our money in a recession and how to make money in an economic downturn.
My message is very clear: before we invest in anything, first we need to invest in ourselves.
We need to wake up and learn from our mistakes. We are in this financial mess because we put our trust in the financial institutions to do the “right thing”. We gave too much control to the banks.
I have been lucky in that I started learning how to control and invest my own money six years ago. Most people lack the experience and skills to do that. Therefore it is extremely important for everyone to start learning how to better invest their own money.
Handing everything over to the banks just because “they know best” is not the answer. If the banks knew what they were doing, there would be no such thing as a financial crisis.
On this website, I will post articles and resources that will help you learn how to become a better investor and achieve better control over your money.
Conclusion
We need to stop seeing the protesters in Wall Street (and now spreading to Europe) as mere “outsiders”. They care about the same ideals that you and I care about: a free market without corruption where our elected leaders are not just mere pawns to a corporate elite.
This is not about politics. The concepts of left, right and centre do not apply here. Those concepts only have meaning in a truly democratic society, not when the unelected financial institutions call the shots.
I do not believe these protests will come to an end. In fact, this is just the beginning. Until last week, the protests were focused mainly in Wall Street. Now it is spreading to other parts of Europe. Goldman Sachs and the World Banks had better get prepared.
Let me know how you felt about this article. Did you agree or disagree with what I said, and did it help you at all? Feel free to leave me your comments below.
Well put. I do agree, and I’ve been arguing that an emerging enlightenment in the public as to where power really lies, and the cozy relationship between business, lobby companies and politicians would finally be exposed as the overall system topology which has caused our current crisis. And when that enlightenment spreads, it’ll either burn everything in a suit in it’s path, or it will seek to clean up the house by throwing out the existing political parties and their business associations and replace it with a revitalised democracy of independents. At the very least this would allow the cycle to start again and reset the clock, allowing new political power lines to be drawn over the next 100 years.
Nothing less than a quiet UK revolution against the current political system, using that system, will do. This will cut corporate out of government and rebalance to a more acceptable level which contains a measure of social conscience.
Totally agree, if the world fails to listen to the people then the response will always be to riot and protest. People need to go back to basics, look back at how these banks started, they are based on greed and will continue with the same ethics. Look after your families, before long the simple man / woman will be based on survival. the savings in the bank will disappear. Unless you have gold bars under your bed, its best to have a sustainable lifestyle to get you through the tough times.
great Alessio,go ahead,I agree with you about the so called “experts”,actually I’m a trader and know very well what means that,unfortunately a lot of people don’t have any idea about that,I hope people like you will educate as many as possible of these men in the future,I hope…keep your good job
Well said! I hope the #occupy movement carries on until governments around the world makes REAL changes to these too big to fail banks….
Interesting article, but when you say these protests are only the beginning and that Goldman Sachs and the World Banks had better get prepared, what do you think is going to happen both in terms of protests and in terms of the banks? In what way should GS et el get prepared?
i respect where you are coming from and i do agree with what you say about financial institutions. problem is bottom line the regular punter on the street doesn’t truly understand how money and systems work..they know something is wrong but the protesters don’t essentially appreciate what they are protesting about..
i find it creepy hearing how the cabinet in the white house has representatives of groups deeply involved with so called think tanks such as the counsel on foreign relations etc..and when you see former heads of goldman advising the govt on financial and foreign policies..it seems extremely possible that individual interests and conflicts of interest may inevitably arise. i try to keep an open mind but having seen documentaries and movies, nothwithstanding the fact they call conspiracy (such as zeitgeist, inside job etc), all evidence points towards the United States and by extension the ‘free world’ could do well with somebody like ron paul elected. i am a lawyer in ireland with very little disposable income..i would like to protect the few thousand euro in the bank..but have no idea where it would be best invested..open to ideas 🙂
While I agree with you in everything you say it is prudent to realize that the banks are as much a prisoner of the system as the average citizen, they have not done the right thing but that’s not how the rules of the game were made either.
The fact is that system was flawed from the start.
If you like conspirocy theories there is much to read about Abraham Lincoln and the FED / US treasuries.
This might also be of interest: http://www.rense.com/general76/jfkvs.htm
The sheeple are now waking up to who really is in control and how corrupt they are. I totally agree with everything your saying.
I respect your honesty concerning “Goldman Sachs rule the World” but “I dream of another recession” really stung, but if you didn’t make that second comment, it might not have gone ‘viral’! It’s not the job of a trader (neither should it be) to fix or regulate the economy,it’s just to make money for yourself or your clients,that’s Capitalism.Personally i am glad you opened up some kind of discourse on the matter.
I think the bailout was a setup and printing money is selling us out further.
Alessio, all this has been said before by John Perkins, Martin Armstrong and Gerard Celente in the last decade.
Let’s find something new to talk about.
Because, you are actually saying that to swim with the sharks you got to be a shark yourself. Investing in our financial education is a good idea, but I think you should point out that investing in the markets is something that should be avoided. The game is not there to be “played” by anyone with a home mortgage or anyone who believes that you can get rich on the market.
And that’s rulling out 99% of the people.
You are bang on correct here Alessio. The people looking at these riots need to realise that those Occupy protestors for the most part are disenfranchised people like you and I. Who at the end of the day just have more get up and go (aka balls) than the rest of us. So many people are trying to keep food on their tables right now. You are right it will get worse and I hope it does. We need to reset this planet. It’s going to the dogs, cheers.
Allessio,following you for a while now and appreciate your posts but please can you post your opinion on exactly what in your opinion is the best way to protect people’s savings.Gold,Silver,bonds etc etc.The general public like myself have limited knowledge and your advice could really help.Perhaps you have covered this in another post and I have missed it but a top 5,top 3,hell a 1 suggestion list would be really helpful to read.Well done on the Saturday Night show in Ireland by the way
Great article Alessio Rastani! I often try to put the message forward that people need to listen to themselves and not the “experts”. The “experts” are often wrong about everything, they are not taught how to think but what to think but college Keynesian economic professors that got us in to this mess in the first place. It’s always alarming when your slammed somehow for being “anti-intellectual” and “anti–education” just because you don’t take the “experts” and “intellectuals” word hopefully more and more people will distance themselves to these two groups of people.
I almost agree with everything, just keep in mind that this did not start with Occupy Wall Street. Read about 15M protests started in Madrid some months ago.
http://en.wikipedia.org/wiki/15-M_Movement
18th century (!) Scottish historian Alexander Fraser Tytler:
“A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves money from the public treasure. From that moment on the majority always votes for the candidates promising the most money from the public treasury, with the result that a democracy always collapses over loose fiscal policy followed by a dictatorship. The average age of the world’s great civilizations has been two hundred years. These nations have progressed through the following sequence: from bondage to spiritual faith, from spiritual faith to great courage, from courage to liberty, from liberty to abundance, from abundance to selfishness, from selfishness to complacency from complacency to apathy, from apathy to dependency, from dependency back to bondage.”
I am looking forward to read more from you, especially those articles on how to become a better investor and achieve better control over money.
Attaboy, nice article!
Keep on this way because the only way to get ahead financially is to be financially educated.
Write more on how people can learn to take care of their own money and invest, not letting, as you said, the banks do the right thing (to themselves, not to their customers of course).
Hi Alessio!
I totally agree with your article, it’s time we take ownership of our own lives again and I hope people realise more and more that this is what these protests are all about – getting the system to work for, and not against, the people.
Thank you for your honesty and clarity!
Estoy de acuerdo con vos y tu punto de vista con respecto a la FALSA DEMOCRACIA en la que vivimos en todo el mundo. Gracias por tu Blog. Me gusta y pienso que haces una gran labor al compartirlo con los demas. Buena Suerte.
I agree with you and you point of view about the FALSE DEMOCRACY in wich we livin all over the world. Thanks for your Blog. I like it and think than you make a great work sharing it with others. Good Luck.
Agreed! 🙂 All the big systems are melting like wax. And the big/fat corporations “that go down to the sea in ships, that do business in great waters” will have to face “the stormy wind, which lifteth up the waves…” Best, Paul
I fear your predictions are inevitable. Demand > Supply but Cost of living is already higher than the salaries brought in. Govmt dont have the funds to subsidise.
Alessio – I have been following you’re blog ever since that BBC interview. I am truly in awe of you’re honesty & no BS attitude. Its such a refreshing change.
I think you are a true hero for what you are trying to do with you’re website and you’re insights.
Thank you Ravi – I really appreciate that. I am no hero – but it’s great to have people like you who give support. cheers.
Alessio – Great work so far promoting this message.
Question: You wrote, and I agree, that our elected leaders and governments are nothing but slaves to Goldman Sachs and J.P. Morgan. The question is what is our solution? How do we free ourselves from their control? How can an individual avoid the flack that is bound to be flying around in the next 12 to 24 months – falling home values, rising food prices, weaker economy, increased unemployment, war etc? Am I too negative about the future?
Interesting article, although I would like to highlight what Carlos said above: it is not correct to say that the protests started in NY, that is false, they started in Madrid the last May 15th, you should read about the 15M Movement! This is just the beginning…
http://www.democraciareal.es
“Lo llaman democracia y NO Lo es!”
Cheers
Ok I agree hat the banks/financial institutions around the world have been unethical,greedy and irresponsible, however I liken this banking crisis to the war on drugs:
Who is wrong the drug pusher or the drug addicts??
The Banks (drug pushers) are/were simply supplying demand (people/companies other institutions living beyond their means).
In otherwords, individuals at the lower ends of the food chain have to take some responsiblity. Just because you wanted a 3 bedroom house, a new car and 3 holidays a year doesnt mean to say you can responsibily afford them!
What did we do before credit was so freely available? We saved up for things and didn’t expect things to be given to us for nothing.
I keep thinking of this quotation by Sir Anthony Eden in the House of Commons in 1928:
“We do not have democratic government today…what we’ve done in all the progress of reform and evolution is to broaden the basis of oligarchy.”
@Jayne : this is *exactly* what Alexander Fraser Tytler meant. (See a quote of his in my comment above). People vote representatives that promise them easy prosperity. These politicians bid against each other and are of course helped by the banks to postpone the consequences of the deficit spending.
Ron Paul is arguing against this for more than 30 years for ch@#$ sake! Only now they start listening….
nice, thanks!
Wow, it’s taken forever.
The media is completely corrupt, that’s how we ended up in Iraq, and why there was NO INVESTIGATION into how we got the “false information” about the “final proof coming in the form of a mushroom cloud”. It’s totally corrupt from politics to finances.
We have a string of liars and pumpers. Jim Cramer admitted he broke the law on the air in an interview, and NOTHING HAPPENED TO HIM. Angelo Mozilo destroyed Countrywide and walked away with a pile of gold. Dick Fuld did the same with Lehman, Franklin Raines did the same with Fannie Mae and NO PROSECUTIONS.
Dick Cheney made certain his old companies profited enormously from his corruption, as did Hank Paulson – NO PROSECUTIONS.
And the MEDIA doesn’t even report on it.
Our politicians are lazy, incompetent, morons on the take. The Patriot Act was signed into law in about an hour after it was introduced, it’s over 400 pages, not a SINGLE LAWMAKER read the bill. Or should I say “lawmaker” – they don’t make the laws, they don’t even read them.
It’s entirely a corrupt system. It’s a smash and grab free for all, and it’s taken to THIS POINT for people to BEGIN to recognize it. It’s not as if this has only been going on for the last 10 years, it’s been going on for 20 or more. That’s how long I’ve been aware of it.
Our media is an entirely worthless propaganda organization that has NO ACCOUNTABILITY whatsoever. Our politicians are nothing more than bought and paid for pretty men and women in suits who have NO IDEA what they are talking about. Ron Paul might be an exception and he’s not a pretty boy. He’s a scholar.
This nation is led to argue about abortion, gay marriage, school prayer, flag burning, and other issues which are TRIVIAL in comparison to the rampant corruption in our system. The political meat puppets have led the nation into bankruptcy, and let me assure anybody reading this, we won’t escape bankruptcy, just click on the website address I left, and you can see for yourself in the 3rd graph.
It’s funny that it’s taken to this point to get people to finally wake up but at least, finally, they are a awake. Welcome to the United States when you don’t hold your media, politicians, or anybody accountable because you were more interested in watching television and made your selection of who was going to represent you during a commercial break as you were in the kitchen, grabbing a beer. It’s the bed the American populace has made. This couldn’t have happened without a TOTAL LACK of civic responsibility of population at large.
Ciao Alessio,
thanks for your contribution because it s a voice out of the chore….A few comments:
– I would not like to separate the world between experts and not experts….if you honestly look back some of the economists/ hedge fund managers/financial players got it right; the fact they werent heard is another problem…
– I agree with those who left comments by saying that faults are not only on IB or governments, subprime borrowers or prime borrowers getting dream loans with 120% LTV should take the pain for their small part (keeping rates low help bankers and their bonuses but also the lower end of the chain if you are objective on it)
– I like your articles and keep continuing on it…one question on being a better trader and having control on your money: would you be open to share publicly your investment returns over the last 3 years/1 year/6 months in order to add more colour to the discussion?
At the end of the day the main division is between who can hedge his money+make money in the markets and losers (including some economists who got right but didnt profit from the crisis!)
Looking forward to knowing your thoughts,
Pepefra
F.F.O. !!!
I’m confused by Occupy Wallstreet. What exactly is their message? It seems to me that Occupy Wallstreet should focus their attention on the real problem — the President, Congress, and the Federal Reserve. They are the ones who created this mess — Wall Street (and homebuyers I might add) just took advantage of the laws/loopholes that were created by government. I’m confused — does Occupy Wallstreet want capitalism or socialism? Securitization, trillion dollars in credit default swaps, no-doc loans. They were all made possible by government. So, why isn’t Occupy Wallstreet in front of government offices and the Federal Reserve? Who authorized the Bank Bailouts, billions to overseas banks, who gave the bailout to GMC, Fannie & Freddie, etc? We know big money controls the country and that politicians and media are lobbied. The the buck stops at the President, Congress & Federal Reserve.
From Wiki:
Crony capitalism is a term describing a capitalist economy in which success in business depends on close relationships between business people and government officials. It may be exhibited by favoritism in the distribution of legal permits, government grants, special tax breaks, and so forth.
Crony capitalism is believed to arise when political cronyism spills over into the business world; self-serving friendships and family ties between businessmen and the government influence the economy and society to the extent that it corrupts public-serving economic and political ideals.
Hi Alessio, I must say i appreciate yr cold harsh logic, especially in the media where it’s never heard. I can appreciate that playing the game of making money out of recessions and other market movements is rather engrossing for you but how about those of us that have no savings. There are a lot of us. A lot with only debts.
Is yr advice to get the hell out of debt now ASAP?? Or how about staying there?
Or depending on the structure & size of yr debt keep it, because as the banks fail they will scrub out these debts?
How about investing in something more solid than money, say earth?? I meant soil, like sustainable agriculture or protecting forests from logging. This would in trading terms amount to ‘charity’ but in terms of inter-generational capital it could accrue its purchase value several times over.
I guess that for someone like yrself who dreams of volatile markets, this would seem like the anti-thesis of a good investment strategy.
How volatile would a market need to get before you would decide to pull yr money and do something else w/ it? What would u do??
Yr candid nature on screen has won me, but i’m pretty sure thats not wot yr about anyway.
The irony of your way of speaking about the volatile markets and the fact that you are complicit in their chaos is equal, to me, of the belief that economics is not bounded by real-world constraints of finite global resources, yet relies on them as commoditities to trade stability back into a bucking system (or whatever the term is).
Sorry if i misunderstand you, it’s clear that u are an honest person, but my clear priorities are elsewhere, to invest in the possibility of a healthy, happy, aware & fulfilling future for generations i will never meet.
Are you considering that if multitudes could be functional & aware investors on the share market that they could alter the markets?? That would be an interesting take on participatory democracy!!
Finally I really appreciate yr commentry, & look forward to seeing more, yr video be shared…
Pedro in AUST
I was walking on Queen street here in New Zealand, October 15, when all of a sudden I see a group of people gathering, camping and screaming at a very famous park here in downtown Auckland. I couldn’t believe that it was happening. People are really organized, that’s nice to see!
I agree with you. I think its just the beginning.
Well Said. Don’t forget about the military industrial complex that feeds into the whole system. My hopes are that people wake up to the “money trail” but personal experience tells me otherwise. Most people are satisfied with the TV set and electricity working on cue. I hope I’m wrong. OWS will hopefully gain more momentum. Hope it doesn’t end up like the 60’s movement! Those are the people messing us up! Cheers
I started investing money right before the recession and I completely agree with everything you have said. I made money on penny stocks(wamu) and lost some investing on financials, I’m trying to come back now with the vengeance. I still have a 401K but only the minimum so I can take what my corporate overlords match. I am currently trying to raise enough capital to invest even more than what I did before a long with trying to finish up business school. I have followed you since your interview with BBC. “invest in yourself” I live for this, thanks for the encouragement. I hope to eventually quit my job and be an independent trader.
Its nice to see someone put their head above the pulpit and tell it the way its is. My prediction over a year ago was that Europe would get very hot this summer! Wait for the Spainards with 40% unemployment in u25 to catch the reality – i bet someone in the BBC got their knuckles rapped for allowing you to air your views – itialian bonds yeilds rising again this morning, will the ECB intervene again and with what? keep up the good work!
IT IS QUITE SIMPLE.NEVER USE VIOLENCE BUT ALWAYS THE MOST IMPLACABLE FORCE TO DEFEND YOURSELF AS THIS FALSE CRIMINAL SYSTEM WILL FINALLY TRY TO DESTROY THE PROTEST WITH GUNS.THAT WILL BE TIME FOR ACTION AS THE POLICE IS ALWAYS ON THE SIDE OF THE WRONGDOER.WE NEED A LEADER BUT NOT 2 AS ONE PERSON CAN ALWAYS BE PERSONALLY RESPONSIBLE..THE FAILURE OF DEMOCRACY IS BECSAUSE NO ONE IS EVER HELD RESPONSIBLE.THE COWARDLY CAMERON IF HE IS DEPOSED IS NOT PUNISHED FOR RUINING THE LIVES OF PEOPLE INSTEAD REWARDED WITH TEN MILLION POUNDS FOR SELLING HIS MEMOIRS AND A PENSION OF £300.000 PER YEAR.HE SHOULD PAY WITH HIS LIFE FOR HIS CRIMES.
EVERYONE SHOULD CONTRIBUTE TO WHAT THEY CONSUME IN LIFE,FOOD,CLOTHING,HOUSING.TRANSPO
RT MEDICAL CARE,ENTERTAINMENT,HOLIDAYS,EVERYTHING PHYSICALLY NEEDED TO LIVE A DIGNIFIED LIFE..NOBODY CAN DISAGREE,AND THEN GDP WOULD DOUBLE.NO WARS,NO BEAUROCRACY,ONLY EVERYONE WITH AUTHORITY TO BE HELDPERSONALLY RESPONSIBLE FOR THEIR ACTIONS..CRIMINALS ONLY PHYSICAL PUNISHMENT,ONCE ALL HAD WORK CRIME WOULD BE PUNISHED
AND HUMAN RIGHTS,FOR ALL TO HAVE WORK AND BE SECURE.UNIONS WOULD HAVE TO ENCOURAGE ALL TO TAKE RISKS AND WORK HARD AND THE BEST PEOPLE WOULD LEAD AND APART FROM A LIVING WAGE ALL WORKERS WOULD RECEIVE HALF THE PROFIT OF THE BUSINESS THEY WORK FOR ON TOP OF THEIR WAGES..THE WORD FINANCIAL WOULD BE WIPED OUT AND
IN ITS PLACE PRODUCTION.. BANKS AND THE LAW RUN BY THOSE WHO HAVE INTELLIGENCE and understanding FOR BY THOSE WHO HAVE MADE MONEY FROM FINANCIALS AS ALL FINANCE TO MAKE MONEY FRON FINANCE WOULD BE FORBIDDEN…THEIR MONEY WOULD NOT BE TAKEN FROM THEM AND BANKS WOULD LEND ONLY FOR GOODS ONLY AND SPECULATION WOUL BE PUNISHED,BUT NOT WITH WORDS
INMENT,HOLIDAYS
YOUR CENSORSHIP IS REVEALING AND THE TRUTH YOU CANNOT PREVENT.HOPE WALL STREET PAYS YOU WELL
Thank you for the input Juan. By the way, I never censor any comments on my page. Cheers. Al