Dissatisfied with the country’s worsening economic troubles and displeased with proposed austerity measures, thousands of demonstrators clashed with police in Madrid Tuesday. The protesters formed a human chain around the parliament building while police fired bullets at and beat the most violent in the crowd with truncheons. At least 22 people were arrested while 32 were injured, including four policeman. The protest was timed to the new 2013 budget, which will be announced by the government Thursday and includes cuts in inflation-linked pensions, taxes on stock transactions, the implantation of green taxes, and the elimination of several tax breaks. The region of Catalonia, which is responsible for 20 percent of the national output, called for an early election on Nov. 25 that could lead to a referendum on secession.

Yves at Naked Capitalism has a good run down on the situation in Spain. And this Daily Kos diary does a pretty good job of showing the consequences of the banker control going on in Europe.

Dave Johnson at Seeing the Forest adds this:

The job of bankers is to assess risk. They are supposed to look at all the factors, and price a loan accordingly. If you have a credit card with very high risk, you might pay in the 20% range! This way the banks can lend out the money, and even if a large percentage of the borrowers default, they still do OK. They are expecting a certain default rate, they price accordingly, they do OK on the loan portfolio.

Same for when they lend to countries. They price loans according to the default risk, and over the lifetime of the loans they are supposed to get their money back plus some return, even with the expected defaults. If the banks screwed up and didn't price their loans correctly, this doesn't make the people of Greece lazy, etc. it makes the bankers incompetent.

OR the bankers did price correctly, and over the lifetimes of all of their loans they are getting their money back and a return, AND they are also taking advantage of the situation to get more, make a killing, force privatization, force wages down, get rid of that pesky democracy that has been in the way, etc.

So here we are again, with the elites in the position of being either stupid (incompetent) or evil. And with the people in misery as a result, while the elites do just fine for themselves. With the added bonus for the elites that the experiment of wresting control from the elites and to the people -- democracy -- ending.

The wealth gap between the richest Americans and the typical family more than doubled over the past 50 years.

In 1962, the top 1% had 125 times the net worth of the median household. That shot up to 288 times by 2010, according to a new report by the Economic Policy Institute.

That trend is happening for two reasons: Not only are the rich getting richer, but the middle class is also getting poorer.

Most Americans below the upper echelon have suffered a decline in wealth in recent decades. The median household saw its net worth drop to $57,000 in 2010, down from $73,000 in 1983. It would have been $119,000 had wealth grown equally across households.

The top 1%, on the other hand, saw their average wealth grow to $16.4 million, up from $9.6 million in 1983. This is due in large part to the growing income inequality divide, as well as the sharp rise in value of stocks over the period.

Of course, we've all known this, except for perhaps these most recent precise numbers.

Oh, boo-hoo! BP investors will not be heartened by the unexpectedly severe loss Europe’s second-largest oil company experienced over the three-month period that ended June 30, as the company had already been lacking performance-wise lately. BP reported a loss of $1.4 billion, which it chalked up to a delayed Alaska project, the United States’ taking advantage of its shale gas assets, and $4.8 billion in write-downs on some of their refineries. “This is a very, very disappointing set of results; they missed across all fronts by a wide margin,” said one London oil analyst. BP’s CEO, Bob Dudley, is struggling to perform under the weight of problems he inherited from predecessor Tony Hayward after the Deepwater Horizon oil spill.

More at the NYT.

Moyers talks to RoseAnn DeMoro, who heads the largest registered nurses union in the country, and will lead a Chicago march protesting economic inequality on May 18th. DeMoro is championing the Robin Hood Tax, a small government levy the financial sector would pay on commercial transactions like stocks and bonds. The money generated, which some estimate could be as much as $350 billion annually, could be used for social programs and job creation, ultimately to people who, without a doubt, need it more than the banks do.

DeMoro and her organization, National Nurses United, have an inspiring history of defeating some of the toughest opponents in government and politics.

[Via BillMoyers.com]