Reich: The Rigging of the American Market

[eridani]

Last edited Tue Nov 3, 2015, 07:36 AM - Edit history (1)

http://readersupportednews.org/opinion2/277-75/33272-focus-the-rigging-of-the-american-market

As recently as 2000, America’s five largest banks held 25 percent of all U.S. banking assets. Now they hold 44 percent – which gives them a lock on many such loans.

If we can’t repay, forget using bankruptcy. Donald Trump can go bankrupt four times and walk away from his debts, but the bankruptcy code doesn’t allow homeowners or graduates to reorganize unmanageable debts.

So beleaguered homeowners and graduates don’t have any bargaining leverage with creditors – exactly what the financial industry wants.

The net result: another hidden upward redistribution – this one, from us to the big banks, their executives, and major shareholders.

Some of these upward redistributions seem to defy gravity. Why have average domestic airfares risen 2.5% over the past, and are now at their the highest level since the government began tracking them in 1995 – while fuel prices, the largest single cost for the airlines, have plummeted?

Because America went from nine major carriers ten years ago to just four now. Many airports are now served by one or two.

This makes it easy for airlines to coordinate their fares and keep them high – resulting in another upward redistribution.

[Human101948]

1. Is Robert Reich now writing under Krugman's name?

The Rigging of the American Market
By Robert Reich, Robert Reich's Blog
02 November 15

http://readersupportednews.org/opinion2/277-75/33272-focus-the-rigging-of-the-american-market

[eridani]

2. Sorry. Corrected n/t