Financial Media Articles

Excerpts of Key Financial Media Articles in Major Media

Below are key excerpts of revealing news articles on financial corruption from reliable news media sources. If any link fails to function, a paywall blocks full access, or the article is no longer available, try these digital tools.

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Note: Explore our full index to key excerpts of revealing major media news articles on several dozen engaging topics. And don't miss amazing excerpts from 20 of the most revealing news articles ever published.

The US government is on a ‘burning platform’ of unsustainable policies and practices with fiscal deficits, chronic healthcare underfunding, immigration and overseas military commitments threatening a crisis if action is not taken soon, the country’s top government inspector has warned. David Walker, comptroller general of the US, issued the unusually downbeat assessment of his country’s future in a report that lays out what he called “chilling long-term simulations”. These include “dramatic” tax rises, slashed government services and the large-scale dumping by foreign governments of holdings of US debt. Drawing parallels with the end of the Roman empire, Mr Walker warned there were “striking similarities” between America’s current situation and the factors that brought down Rome, including “declining moral values and political civility at home, an over-confident and over-extended military in foreign lands and fiscal irresponsibility by the central government. In my view, it’s time to learn from history.” Mr Walker’s views carry weight because he is a non-partisan figure in charge of the Government Accountability Office, often described as the investigative arm of the US Congress. In an interview with the Financial Times, Mr Walker said he had mentioned some of the issues before but now wanted to “turn up the volume”. Some of them were too sensitive for others in government to “have their name associated with. I’m trying to sound an alarm and issue a wake-up call,” he said. “As comptroller general I’ve got an ability to look longer-range and take on issues that others may be hesitant, and in many cases may not be in a position, to take on."

In November 1934, federal investigators uncovered an amazing plot involving some two dozen senior businessmen, a good many of them Wall Street financiers, to topple the government of the United States and install a fascist dictatorship. An alert FDR shut it down but stopped short of retaliatory measures against the plotters. A key element of the plot involved [Smedley Butler], a retired prominent general who was to have raised a private army of 500,000 men from unemployed veterans and who blew the whistle when he learned more of what the plot entailed. The plot was heavily funded and well developed and had strong links with fascist forces abroad. A story in the New York Times and several other newspapers reported on it, and a special Congressional committee was created to conduct an investigation. The records of this committee were scrubbed and sealed away in the National Archives, where they have only recently been made available. The Congressional committee kept the names of many of the participants under wraps and no criminal action was ever brought against them. But a few names have leaked out. And one is Prescott Bush, the grandfather of the incumbent president. Prescott Bush was ... deep into the business of the Hamburg-America Lines, and had tight relations throughout this period with the new Government that had come to power in Germany a year earlier under Chancellor Adolph Hitler. It appears that Bush was to have formed a key liaison for the group with the new German government. The role of the most powerful political dynastic family in the nation's history in this whole affair is shocking.

Note: You can listen to the highly revealing BBC Radio broadcast on Bush/Nazi ties by clicking here. And to watch an eye-opening History Channel documentary on the coup plot, click here. U.S. Marine Corps General Smedley Butler was the author of the landmark book "War is a Racket," summarized here.

The United States and the European Union have signed up to a new transatlantic economic partnership at a summit in Washington. The pact is designed to boost trade and investment by harmonising regulatory standards, laying the basis for a US-EU single market. The two sides agreed to set up an "economic council" to push ahead with regulatory convergence in nearly 40 areas, including intellectual property, financial services, business takeovers and the motor industry. The aim is to increase trade and lower costs. Some reports suggest that incompatible regulations in the world's two richest regions add 10% to the cost of developing and producing new cars.

Note: Why is this important news getting such minimal press coverage?

The U.S. current-account deficit is the broadest measure of America's activity in international trade and global finance. It totaled $857 billion last year, the Commerce Department reported last week. For the fifth year in a row, the nation's current-account deficit set a record. As Federal Reserve Chairman Ben Bernanke testified last year before Congress: "The immediate implication [of the nation's soaring current-account deficit] is that the U.S. economy is consuming more than it's producing, and the difference is being made up by imports from abroad, which in turn is being financed by borrowing from abroad." Last year's current-account deficit meant that Americans effectively borrowed $3.3 billion every single working day to fund the gap between their spending and their income. The accumulation of ever larger current-account deficits over the past quarter century has played an indispensable role in transforming the United States from the world's largest creditor nation into the planet's biggest debtor nation. Specifically, in 1982, America's net international investment position was a positive $236 billion. That meant that foreigners owed us nearly a quarter of a trillion dollars more than we owed them. At the end of 2005 (the latest year for which data are available), the net international investment position of the United States was a negative $2.55 trillion. In other words, we owed foreigners more than $2.5 trillion than they owed us. Since 1994 alone, America's net international investment position has deteriorated by more than $2.4 trillion.

Note: The Washington Times was the only media source to report on this highly important story. Why? For a possible answer, click here. For more underreported, yet massive government corruption, click here.

The three top auditors overseeing work in Iraq told a House committee their review of $57 billion in Iraq contracts found that ... about $10 billion has been squandered by the U.S. government on Iraq reconstruction aid because of contractor overcharges and unsupported expenses. Of the $10 billion in overpriced contracts or undocumented costs, more than $2.7 billion were charged by Halliburton Co., the oil-field services company once headed by Vice President Dick Cheney. Federal investigators warned Thursday that significantly more taxpayer money is at risk. More than one in six dollars charged by U.S. contractors were questionable or unsupported, nearly triple the amount of waste the Government Accountability Office estimated last fall. "There is no accountability," said David M. Walker, who heads the auditing arm of Congress. "Organizations charged with overseeing contracts are not held accountable. Contractors are not held accountable. The individuals responsible are not held accountable." The investigators urged the Pentagon to reconsider its growing reliance on outside contractors. Layers of subcontractors, poor documentation and lack of strong contract management are rampant. Walker complained that GAO investigators have difficulty getting basic detail about reconstruction contracts such as expenses and subcontractors involved because many Pentagon divisions fail to consistently track or fully report them. Noting that auditors still have $300 billion of Iraq spending to review, Waxman said the total amount of waste, fraud and abuse "could be astronomical."

Note: To understand how so much money can go missing, read what a top U.S. general has to say here. And for major media articles claiming hundreds of billions of dollars are missing, click here.

The Secretary of the Treasury ... is required annually to submit financial statements for the U.S. government to the President and the Congress. GAO is required to audit these statements. Certain material weaknesses in financial reporting and other limitations on the scope of our work resulted in conditions that continued to prevent us from expressing an opinion on the accompanying consolidated financial statements for the fiscal years ended September 30, 2006 and 2005. The federal government did not maintain effective internal control over financial reporting. While we are unable to express an opinion ... the following key items deserve emphasis. The U.S. government’s total reported liabilities, net social insurance commitments, and other fiscal exposures continue to grow and now total approximately $50 trillion, representing approximately four times the Nation’s total output (GDP) in fiscal year 2006, up from about $20 trillion, or two times GDP in fiscal year 2000. The retirement of the“baby boom” generation is [also] closer to becoming a reality with the first wave of boomers eligible for early retirement under Social Security in 2008. It seems clear that the nation’s current fiscal path is unsustainable and that tough choices by the President and the Congress are necessary in order to address the nation’s large and growing long-term fiscal imbalance. Other material weaknesses were the federal government’s inability to: determine the full extent to which improper payments exist; identify and resolve information security control weaknesses; and effectively manage its tax collection activities.

Note: The full 172-page report is available here. Why didn't any of the media cover this eye-opening report? Is the fact that the national debt has risen 150% since 2000 not news? For a possible answer, click here. To learn of the trillions of unaccounted for dollars in the military, click here.

Stock sales by America's corporate leaders exceeded purchases last month by the widest ratio in nearly 20 years. Executives sold $63.18 of shares for every $1 they bought in November, the largest ratio since at least January 1987. U.S. securities laws require company executives and directors to disclose stock purchases or sales within two business days. Insiders sold $8.4 billion in shares last month, according to data compiled from SEC filings. Buying was ... $133 million. The overall insider-selling amount was the fifth-highest since 1987. Selling peaked at $13.9 billion in March 2000. The data have "value for investors," said Wayne Reisner at Carret Asset Management in New York. "It's people who are very familiar with their company and their stock." Insiders executed 6.34 sales transactions for each purchase transaction in the eight weeks ended Dec. 1. That's up from 2.45 in the period ended Aug. 4 and above the ratio of 2.25 he considers neutral for the market. Microsoft ranked first among U.S. companies, with $594.2 million in sales by insiders in November. Seagate Technology and DreamWorks Animation SKG Inc. ranked second and third, at $311.8 million and $224.2 million, respectively. Google Inc. was fourth, at $182.1 million.

Note: Isn't it interesting that the NASDAQ stock index reached it's all-time high in March 2000, the exact month executive stock selling hit its record, and just prior to the huge NASDAQ crash. Is it possible that corporate executives knew something the rest of us didn't?

The richest 2 percent of adults still own more than half of the world's household wealth, perpetuating a yawning global gap between rich and poor, according to research published Tuesday. The report from the Helsinki-based World Institute for Development Economics Research shows that in 2000 the richest 1 percent of adults - most of whom live in Europe or the United States - owned 40 percent of global assets. The richest 10 percent of adults accounted for 85 percent of assets. By contrast, the bottom 50 percent of the world's adult population owned barely 1 percent of the world's wealth. "Income inequality has been rising for the past 20 to 25 years, and we think that is true for inequality in the distribution of wealth," said James Davies, a professor of economics at the University of Western Ontario, one of the report's authors. But ... there are some hopeful signs: China and India, which are developing rapidly, are gaining wealth, and in countries such as Bangladesh, the spread of microcredit institutions is helping people increase their personal wealth.

Note: If you are interested in a secure vehicle in which to place your investments which helps to directly pull families out of poverty in a big way through microcredit and microloans, click here.

The most important--and unfortunately the least debated--issue in politics today is our society's steady drift toward a class-based system, the likes of which we have not seen since the 19th century. America's top tier has grown infinitely richer and more removed over the past 25 years. Few among them send their children to public schools; fewer still send their loved ones to fight our wars. They own most of our stocks, making the stock market an unreliable indicator of the economic health of working people. The top 1% now takes in an astounding 16% of national income, up from 8% in 1980. The tax codes protect them, just as they protect corporate America, through a vast system of loopholes. Incestuous corporate boards regularly approve compensation packages for chief executives and others that are out of logic's range. As this newspaper has reported, the average CEO of a sizeable corporation makes more than $10 million a year, while the minimum wage for workers amounts to about $10,000 a year, and has not been raised in nearly a decade. When I graduated from college in the 1960s, the average CEO made 20 times what the average worker made. Today, that CEO makes 400 times as much. Trickle-down economics didn't happen. Wages and salaries are at all-time lows as a percentage of the national wealth. This ever-widening divide is too often ignored or downplayed by its beneficiaries. A sense of entitlement has set in among elites, bordering on hubris.

Note: For some reason the Wall Street Journal has removed this article. You can read it on the website of the article's author at this link.

U..S. non-farm payrolls data—arguably the most closely watched indicator in the world's largest economy—are revised so often and by so much that they can't be trusted, some strategists argued yesterday. Their comments come after Friday's report for October showed huge upward revisions for job creation in August and September. And last month, the Bureau of Labour Statistics said 810,000 more jobs were created between March, 2005, and March, 2006, than originally thought—the biggest revision ever made to the data. "How can you trust a non-farm payroll report that shows such massive revisions—we have never seen this before to such an extent," David Rosenberg, North American economist at Merrill Lynch & Co., railed in a note to clients. The U.S. report—which measures the creation of non-agricultural jobs—is usually released on the first Friday of the month and provides the earliest economic snapshot of the previous month. It tends to be one of the top market-moving indicators, influencing stocks, bonds and currency markets in the U.S. and beyond. "We find it utterly comical and at times almost contemptible that some in our business still wish to trade pending this report," [investment guru] Dennis Gartman wrote in his newsletter yesterday. "Such is nonsense, for the report itself is nonsense."

Bangladeshi microcredit pioneer Muhammad Yunus and his Grameen Bank were awarded the Nobel Peace Prize on Friday for their work in advancing economic and social opportunities for the poor, particularly women. The economist and the bank he founded will share the prize. They were cited for their efforts to help "create economic and social development from below" ... by using innovative economic programs such as microcredit lending. Grameen Bank has been instrumental in helping millions of poor ... improve their standard of living by letting them borrow small sums to start businesses. Loans go toward buying items such as cows to start a dairy, chickens for an egg business, or mobile phones to start businesses where villagers who have no access to phones pay a small fee to make calls. "Every single individual on earth has both the potential and the right to live a decent life. Across cultures and civilizations, Yunus and Grameen Bank have shown that even the poorest of the poor can work to bring about their own development," the Nobel Committee said in its citation. Microcredit is the extension of small loans, typically US$50 to US$100, to entrepreneurs too poor to qualify for traditional bank loans. The bank claims to have 6.6 million borrowers, 97 percent of whom are women, and provides services in more than 70,000 villages in Bangladesh.

Note: If the above CNN link does not work, click here. To make a real difference in the world and to help reduce poverty in a dramatic way, see our empowering summary of this inspiring worldwide movement.

A new congressional analysis shows the Iraq war is now costing taxpayers almost $2 billion a week -- nearly twice as much as in the first year of the conflict three years ago and 20 percent more than last year -- as the Pentagon spends more on establishing regional bases. The total cost of military operations at home and abroad since 2001...will top half a trillion dollars. The spike in operating costs -- including a 20 percent increase over last year in Afghanistan, where the mission now costs about $370 million a week -- comes even though troop levels in both countries have remained stable. [A] major factor...is "the building of more extensive infrastructure to support troops and equipment in and around Iraq and Afghanistan," according to the report. Based on Defense Department data, the report suggests that the construction of so-called semi-permanent support bases has picked up in recent months, making it increasingly clear that the US military will have a presence in both countries for years to come. The United States maintains it is not building permanent military bases in Iraq or Afghanistan. "You would expect [operating costs] to level off if you have the same level of people," said the report's principal author, Amy Belasco, a national defense specialist at the Congressional Research Service. "It's a bit mysterious." The Pentagon has not provided Congress with a detailed accounting of all the war funds, making it impossible to conduct a full, independent estimate.

Note: Many hundreds of billions of dollars have been reported missing by top media sources. Do you think it's possible there might be some corruption going on here?

Public kept in dark as business leads talks about North American integration. Away from the spotlight, from Sept. 12 to 14, in Banff Springs, Minister of Public Safety Stockwell Day and Defence Minister Gordon O'Connor met with U.S. and Mexican government officials and business leaders to discuss North American integration at the second North American Forum. The guest list included such prominent figures as U.S. Defence Secretary Donald Rumsfeld, Mexican Secretary of Public Security Eduardo Medina Mora and Canadian Forces chief General Rick Hillier. The event was chaired by former U.S. secretary of state George Schultz, former Alberta premier, Peter Lougheed and former Mexican finance minister Pedro Aspe. Organizers did not alert the media about the event. Our government ... refuses to release any information about the content of the discussions or the actors involved. The event was organized by the Canadian Council of Chief Executives. The media have paid little attention to this far-reaching agreement, so Canadians are unaware that a dozen working groups are currently "harmonizing" Canadian and U.S. regulations on everything from food to drugs to the environment and even more contentious issues like foreign policy. This process ... is about priming North America for better business by weakening the impacts of such perceived obstacles as environmental standards and labour rights. This is why the public has been kept in the dark while the business elite has played a leading role in designing the blueprint for this more integrated North America.

Note: If the above link fails, click here. Why has the U.S. media not covered this key topic? For a second article discussing this secret meeting on a top Canadian TV website, click here. To learn about other secret meetings of the power elite, click here

With its dollar hoard rising at $17 billion a month and about to pass the $1 trillion mark, Beijing is finding out that it is possible to have too much money. Beijing's growing dollar hoard represents the most dangerous imbalance in today's global economy. The United States is both importing heavily from China and borrowing heavily from the country to finance those purchases, pushing the dollar down and putting the two economic superpowers on a collision course.

So many super-rich Americans evade taxes using offshore accounts that law enforcement cannot control the growing misconduct, according to a Senate report that provides the most detailed look ever at high-level tax schemes. Cheating now equals about 7 cents out of each dollar paid by honest taxpayers, as much as $70 billion a year, the report estimated. "The universe of offshore tax cheating has become so large that no one, not even the United States government, could go after all of it," said Sen. Carl Levin, D-Mich., whose staff ran the investigation. The report details how the Quellos Group, a tax shelter boutique based in Seattle, "concocted a tax shelter" using $9.6 billion "worth of fake securities transactions that were used to generate billions of dollars of fake capital losses." When investigators asked for trading records, Levin said, they were first told the trades were private, over-the-counter transactions. He said investigators asked for trading tickets or other evidence of who owned the $9.6 billion worth of stock and were told the stocks were never owned by the parties involved. "They just wrote down numbers on paper and claimed losses," he said. "It was just like fantasy baseball, except the taxes not paid were for real."

Note: Up to $70 billion is lost to the U.S. Treasury each year, yet law enforcement "cannot control" the problem. Hmmmm. If just $10 million were directed to stop the losses, I suspect things might change and the investment would be paid back many fold. Could pressure from high places be preventing such an investigation?

The average American house size has more than doubled since the 1950s; it now stands at 2,349 square feet. Whether it's a McMansion in a wealthy neighborhood, or a bigger, cheaper house in the exurbs, the move toward ever large homes has been accelerating for years. Consider: Back in the 1950s and '60s, people thought it was normal for a family to have one bathroom, or for two or three growing boys to share a bedroom. Well-off people summered in tiny beach cottages. Now, many of those cottages have been replaced with bigger houses. Six-room apartments in cities like New York or Chicago have been combined. Is it wealth? Is it greed? Or are there more subtle things going on? "Big picture is, they are fueling the local economy," says Pat Trunzo, a local builder. Trunzo says there's a different mindset among the wealthy today, compared to when his father started the family business. "Most of the big houses were visible from the road," he says. Now ... the wealthy "want their own private little enclave. And they don't even want the general public to know that they are there." For Trunzo, it's just a bit strange. But for John Stilgoe, a professor ... at Harvard University, it's emblematic. "The big house represents the atomizing of the American family," he says. "Each person not only has his or her own television - each person has his or her own bathroom. The family members rarely have to interact. And the notion of compromise is simply out one of the very many windows these houses sport."

Note: The year after this article was published, big banks were profiting immensely from record numbers of home foreclosures. The year after that, Wall Street was given a massive taxpayer-funded bailout.

Under a secret Bush administration program initiated weeks after the Sept. 11 attacks, counterterrorism officials have gained access to financial records from a vast international database and examined banking transactions involving thousands of Americans and others in the United States. The program, run out of the Central Intelligence Agency and overseen by the Treasury Department ... is a significant departure from typical practice in how the government acquires Americans' financial records. Treasury officials did not seek individual court-approved warrants or subpoenas to examine specific transactions, instead relying on broad administrative subpoenas for millions of records. That access to large amounts of confidential data was highly unusual, several officials said, and stirred concerns inside the administration about legal and privacy issues. "The capability here is awesome or, depending on where you're sitting, troubling," said one former senior counterterrorism official who considers the program valuable. While tight controls are in place, the official added, "the potential for abuse is enormous." The program is separate from the National Security Agency's efforts to eavesdrop without warrants and collect domestic phone records, operations that have provoked fierce public debate and spurred lawsuits against the government and telecommunications companies.

Note: For more along these lines, see concise summaries of deeply revealing news articles on intelligence agency corruption and the disappearance of privacy.

Imagine the dilemma of having so much cash in your bank account that you didn't know what to do with it. This pipe dream for the average American is now reality for the country's biggest corporations. The industrial companies that make up the Standard & Poor's 500 index...have a staggering $643 billion in cash and equivalents. "We're in a time that is out of whack with all historical numbers," said Howard Silverblatt, equity market analyst at Standard & Poor's. "People are demanding why corporations need so much cash, what are they going to do with it?" Companies began propping up their reserves through 16 straight quarters of double-digit profit growth. Leading the pack with the most cash is Exxon Mobil Corp., which has about $36.55 billion on its balance sheet. That amount is nearly equal to its 2005 profit of $36.13 billion, the highest ever for a U.S. company. Some results of the cash riches: An unprecedented $500 billion of stock buybacks. Last year, ExxonMobil spent $18.2 billion buying its shares. One of the biggest avenues in which companies have spent this excess money has been through mergers and acquisitions. Some 75.4 percent of all deals under $1 billion so far this year were done purely with cash.

Note: A Google search reveals that though this Associated Press article was widely picked up by medium-sized newspapers in the U.S., none of the top 10 papers picked it up. The Seattle newspaper above also removed the word "huge" from the title after it was published. $36 billion means that more than $100 for every man, woman, and child in the U.S. went into ExxonMobil profits last year, and another $100 for each person went into their cash reserves. If ExxonMobil and other oil companies have so much extra cash, why are gas prices so high? It's also quite interesting that the advertisements of these mega-corporations continually invite us to go into debt buying their products, while their profits and cash reserves grow ever higher.

President George W. Bush has bestowed on his intelligence czar, John Negroponte, broad authority, in the name of national security, to excuse publicly traded companies from their usual accounting and securities-disclosure obligations. Notice of the development came in a brief entry in the Federal Register, dated May 5, 2006, that was opaque to the untrained eye. Unbeknownst to almost all of Washington and the financial world, Bush and every other President since Jimmy Carter have had the authority to exempt companies working on certain top-secret defense projects from portions of the 1934 Securities Exchange Act. Administration officials told BusinessWeek that they believe this is the first time a President has ever delegated the authority to someone outside the Oval Office. It couldn't be immediately determined whether any company has received a waiver under this provision. The timing of Bush's move is intriguing. On the same day the President signed the memo, Porter Goss resigned as director of the Central Intelligence Agency. Only six days later ... USA Today reported that the National Security Agency had obtained millions of calling records of ordinary citizens provided by three major U.S. phone companies. Negroponte oversees both the CIA and NSA in his role as the administration's top intelligence official. In addition to refusing to explain why Bush decided to delegate this authority to Negroponte, the White House declined to say whether Bush or any other President has ever exercised the authority and allowed a company to avoid standard securities disclosure and accounting requirements.

Note: For many revealing reports on government secrecy from major media sources, click here.

GAO is required by law to annually audit the consolidated financial statements of the U.S. government. Until the problems discussed in GAO's audit report on the U.S. government's consolidated financial statements are adequately addressed, they will continue to...hinder the federal government from having reliable financial information to operate in an economical, efficient, and effective manner. For the ninth consecutive year, certain material weaknesses in internal control and in selected accounting and financial reporting practices resulted in conditions that continued to prevent GAO from being able to provide the Congress and American people an opinion as to whether the consolidated financial statements of the U.S. government are fairly stated in conformity with U.S. generally accepted accounting principles. Major impediments to an opinion on the consolidated financial statements continued to be (1) serious financial management problems at the Department of Defense. The federal government's fiscal exposures now total more than $46 trillion, representing close to four times gross domestic product (GDP) in fiscal year 2005 and up from about $20 trillion or two times GDP in 2000.

Note:For the official .pdf version on the GAO website click here. Why didn't this become headline news? Why isn't anyone being assigned to seriously investigate these continually unresolved core issues and report to the public that the largest, most powerful country in the world is a long way from being able to track its own finances. For lots more major media articles on major government corruption, click here. You can help to build a better world by sharing this vital information with your friends and colleagues and contacting members of the media and your government representatives asking them to address this pervasive problem. Thanks for caring.

Important Note: Explore our full index to key excerpts of revealing major media news articles on several dozen engaging topics. And don't miss amazing excerpts from 20 of the most revealing news articles ever published.