Wednesday, December 7, 2011

The 7.7 Trillion Dollar Scam

"Wall St. fat cats, bank CEO's, all kinds of corporate bosses are getting richer at record pace with amounts much larger than they were before the crisis.  "The nation’s largest banks have turned more in profit in the last 30 months than they did in nearly eight years preceding the crisis, all while spending millions to derail significant reform legislation."

That, my friends, is the exact definition of redistribution of wealth.  Hard earned tax payer money was redistributed to a failed financial system causing the system to bounce back, grow even larger than they were when they were said to be "too big to fail," and successfully helped the richest people in America get even richer."

I had a heated discussion with a friend this weekend regarding Wall Street. I contended that they enrich themselves beyond measure via crooked operations that are protected by their pals in Washington. He contended that people like me aren't informed enough to judge the huge financial institutions, and that, by criticizing them, I am also criticizing the workings of the Free Marketplace.

Of course I am not informed about the day to day operations of these firms, but I am informed enough to know that the smell wafting through the streets of lower Manhattan isn't lavender.

Is it possible that trillions of dollars of taxpayer money was used to prop up private businesses, that the money changed hands surreptitiously, and that, once exposed, this outrage barely registers in the national media?

Well, yes.

Bloomberg News, hardly a liberal operation, owned as it is by a billionaire fiscal conservative, has fought, for three years, to get information from the government about the details of the bailouts of large financial institutions during the mortgage crisis. They finally got a court to uphold the law of the land and are reporting the details. 

Consider this. The bailouts weren't in the hundred's of billions as reported earlier, but were instead almost eight trillion dollars.

Much of this was given to the banks as interest free loans. The banks in turn loaned the money, in some cases to the government, and earned billions of dollars of interest on this free money. Nice scam. Where do I line up to get in on the action?

It appears that our country's resources exist just to service the needs of a few firms that apparently run the world economy on their own terms.

The newspapers and major news websites have stories on their pages about the Kardashians, the Hiltons, the Jersey Shore crew, and other inbred curiosities. People lap it up. An eight trillion dollar scam by millionaire bankers? Not so much interest.

This land is your land.

Read more:        Secret Loan Program        Slate Magazine
Read more:        Secret Fed Loans       Bloomberg News
Read more:        Breathtaking Bailout     The Week
Read more:        The Rich Get Richer     The Fold Blog