Almost stealth like, but slowly and surely, foreign conglomerates are buying the assets of the United States. It was not until the Soviet Union finally fell that the assets of that country were finally stripped and sold to oligarchs and privatized. In America, the asset stripping is being done in broad daylight under the noses of an unsuspecting and uninformed public.
On February 11th, 2011 the NBC controlled online Zine, New York, announced that a German company is currently in high-level talks to acquire the New York Stock Exchange (Merger Could Take NYSE Out of American Control Deal with German company in the works, Chirs Glorioso, Feb 11, 2011, http://www.nbcnewyork.com/news/local-beat/Merger-Could-Take-NYSE-Out-of American-Control-115817389.html). According to reports published in both the German and American financial press, Deutsche Borse, a Frankfurt-based stock exchange is working to take a 60 percent ownership interest in the NYSE. The merger would create the world’s largest financial exchange and would largely transfer the stock market exchange into foreign hands.
If US and European ‘regulators’ sign off on the plan which they no doubt will being the ‘regulators’ they are, the new parent company would have dual headquarters in Germany and America.
Of course as can be expected, news of the deal sent both NYSE and Deutsche Borse stock soaring.
According to the article, if the deal goes through the merger is not expected to result in major layoffs in New York – or so ‘they’ say. However, the ranks of face-to-face stock traders have already be trimmed considerably on Wall Street in recent years and there is little reason to believe this trend will not continue and that employment will never return to the level it was.
Greg David, director of Business & Economics Reporting at the CUNY Graduate School of Journalism laconically seemed to applaud the move when he commented:
“Stock trading is a commodity business. There’s just no money in it anymore. The fifth largest stock trading firm in the world is located in an office park off the New Jersey Turnpike, so it’s a business that has to change” (ibid).
‘Change’ of course means selling the stock exchange to the highest bidder and this does not seem to bother academics like David.
The deal with Deutsche Borse would give the NYSE an immediate presence in the lucrative derivatives markets worldwide. This is all good news for those on Wall Street whose raison d’etre is profit accumulation. In fact, the merger rumors were greeted positively by investors.
But not all investors were happy about the rumored news. William Higgins, a retired trader who owns 70,000 shares of NYSE stock, noted:
“The reason for the stock exchange was to raise capital for business. These derivatives raise no capital. They’re a new method of gambling” (ibid).
No, the real truth is that the stock exchange was created to make money for the elite few who control it and always have and there is no better way to make money than to ‘go international’, so the deal in the works is actually great news for those who trade on the ‘street’. As for those of us who do not own stock, which is a about 90% of the American people, the deal is nothing more than a shining example of how the assets of the empire are now up for grabs to be taken by the highest bidder, in this case it seems to be Deutsche Borse.