Category Archives: Banking Cartels
Christmas is coming and it will be a sad occasion in the tent cities and other homeless shelters that are a result of the mammoth, sans lube ass fucking delivered by the American oligarchy and it’s whores like that vile corrupt little bastard Joe Lieberman in D.C., Wall Street bagman Barack Obama has delivered a veritable sleighful of same old shit instead of the change that was promised, the worn and threadbare stockings are going to be as empty as his campaign promises and the souls of Wall Street bankers. In yet another of the craven cave-ins by the Vichy DemocRAT party the shit pit Senate commanded by one former Nevada Gaming Commissioner Harry Reid has gutted any sort of health care ‘reform’ short of arming the insurance parasites and empowering them to force the financially doomed to buy protection money, considering Harry’s rumored affiliation with organized crime is it really any surprise that it came to this? Yesterday it was Lansky Lieberman’s baseball bat strike to the kneecaps that killed the new 55 year old age lowering for Medicare eligibility (which would satisfy my personal needs – fuck everyone else and the public option too…I am going native in the land of ‘fuck you I got mine) and today it’s smacking down the importation of pharmaceuticals from Canada. Bring out the leeches! Oh, don’t bother, they’re already here.
So we once again arrive at the ‘most wonderful time of the year’, the right-wing freaks are again shrieking about the phony librul [sic] War on Christmas, this time plumbing the depths of the deranged mind of peckerwoods, Beckers and Palinazis with the ludicrous claim that phony librul Obama had scheduled his presidential address on December 1st to preempt that great American traditional holiday treat A Charlie Brown Christmas. This latest upchucking of fascist media bile even tops the typical Yuletide green vomit spew of Bill O’Reilly and the rest of the FOX Nazis, it seems to me that for one thing Obama was giving the speech to announce the escalation of the war in Afghanistan and we all know that war and murdering Muslim babies is as beloved to the savage chickenhawk cowards on the right as Grandma’s sweet potato pie and secondly wasn’t one of the big themes of A Charlie Brown Christmas the creeping commercialism that had taken over Christmas to begin with? I mean here in the near fully evolved Capitalist shithole of dog eat dog Murka Santa and the retailers, credit card companies and Madison Avenue pimps long ago triumphed over Jesus who has played second banana to the jolly fat man in the red suit for decades now. Gotta give it to the right wing freaks, their sense of history is as distorted as ever and it’s just more piss in the egg nog for everyone else.
So anyway, I want to throw out a few Christmas thoughts before my annual holiday hiatus from blogging (I will return after the first of the year) and foremost I want to give a nice big thank you to Citibank’s top flesh eating buzzard Vikram ‘the bandit’ Pandit. Your government subsidized den of usury and iniquity sent me out a nice little statement on my credit cards (which I had for year and NEVER missed a payment date on) that announced that I could either choose to keep your little plastic devil cards and agree to a 30 + percent interest rate or opt-out by a specified date and keep my old terms. Thanks for the warning fuckwad and thanks even more for this list of stuff that I, Ed Encho have put on your cards prior to my opting out and then advising my lawyer to send you my intention to file bankruptcy letters in the next few months:
1 – 2 year subscription to International Socialist Review
1 – digital camera
1 – Blu Ray player
1 – Inglourious Basterds Blu Ray
1 – Dark Knight Blu Ray
1 – Gladiator Saphire Edition Blu Ray
1 – V for Vendetta Blu Ray
1 – Acer Netbook mini-computer
1 – iPod nano 6th generation (16 gbs)
5 – cases Samuel Adams beer
4 – cases Budweiser
3 – 1.75 liter bottles of Captain Morgan’s Spiced Rum
1 – 1.75 liter bottle of Grand Marnier
2 – Quarts of Jack Daniels sippin’ whiskey
4 – Gallons assorted Gallo jugs of wine
3 – Spiral Sliced Hams (avg. 7 lbs)
2 – Butterball frozen turkey breasts
5 – lbs gourmet coffee
1 – programmable deluxe coffee maker
5 – Assorted Video Games
1 – Drive By Truckers CD
1 – REM Live CD
1 – Each remastered Beatles CD’s (Abbey Road, White Album, Sgt. Pepper)
5 – pounds fresh 20-25 shrimp
5 – pounds fresh snow crab legs
2 – Boxes of 48 miniature cordial chocolate liquor bottles
2 – Cheescake Factory 12 individual sliced cheesecakes
10 lbs – Planters Dry Roasted peanuts
5 lbs – Macadamia nuts
6 – Assorted dog chew toys (moose, duck, bobo, holiday bobo, raccoon, pig and hedgehog)
1 – Deluxe dog bed
1 – Dinner for four at the Outback restaurant along with appetizers (the coconut shrimp are just fucking great) and drinks.
So you little pigfucker, I would like to thank you from myself, my family and my friends for all of the great swag that I have run up in the last few weeks on Citi’s dole and I still have nine more shopping days to go, just under 2,000 left (can you say PARTY TIME) of available credit and thirteen more days until the opt out deadline. I would strongly encourage every other American who is on to the scam to do likewise. It’s a way to boost the economy by buying shit during the season and to shaft you sleazy pricks on the back end.
And if there is anything I hate more than the very concept of Christmas and what it has mutated into in Capitalist America – malls full of morons, political operatives using the season to pander to the angry white fuckwads who have been deprived of it all for their entire pathetic lives, having to be nice to people who you ordinarily would sooner rip their throats out, relatives straight out of National Lampoon’s Christmas Vacation – it is the inconvenient little truth that it’s not even Jesus’s birthday, it is an arbitrary date plucked from the ass of the Roman Emperor Constantine in something like the Fourth Century, don’t tell that to the Palinazi zombies though. You see my friends, Christmas is bullshit, it has been eaten alive by Santa Claus and same pus filled, four-flushing scumbags who are arbitrarily altering the rules on credit card accounts in the aftermath of their bloodsucking feast at the taxpayer trough. It’s all phony and here in Chumpland the suckers eat it up.
And one of the most hypocritical and dishonest aspects of the holiday season is having to pretend to like people who are complete assholes, ignoramuses, blowhards, bigots and the worst of them all: Republicans. A wasted night, usually on a Saturday when there are the NCAA football conference championship games on and spent amidst a gaggle of boring, self-centered idiots who know nothing of history, economics, civics or a concept of what really goes on in the world that is more advanced than the cartoon bullshit that passes for the news in this rotting empire. I must qualify my disdain for these parties in that I do make a distinction between family gatherings and parties with close friends rather than co-workers or the even more dreadful spouse’s co-workers. These affairs are intolerable, the music sucks, the company is bad and often times since they are pot luck events the food is even worse.
A particularly embarrassing and rather disgusting experience that has haunted me for quite awhile comes to mind. One year despite knowing better I allowed myself to be dragged to a Christmas party despite having a gastrointestinal virus (not a good thing for those who suffer from the dreaded I.B.S. to begin with. Now at this party there were about thirty people crammed into a smallish two bedroom suburban house with one and a half bathrooms. Now when the beer and booze are flowing at these sort of soirees there is always a wait for the use of the facilities as the evening goes on. Now combine the aforementioned gastrointestinal virus, I.B.S. and some food that is served (I believe that it was some sort of dip that did it) are a seriously problematic combination. Now when you take into consideration the long lines to use the john, the perfect storm comes together, a category four bowel storm to put it more precisely.
By the time that I painfully winded my way down the hallway, doubled over in agony and feeling like the alien was gestating inside of me I was able to make it inside the bathroom. My pants were already down before the door was fully closed and I just managed to park upon the porcelain a split second before what felt like three cubic feet of volcanic mud erupted from my ass at terminal velocity. I know that this is pretty gross but now comes the truly horrifying part. The shitstorm was so fierce that it flew up the back of the throne and soaked the synthetic fur cover of the toilet seat. So now in addition to having a hallway full of angry revelers about to piss in their pants ready to break down the door it was necessary to work very quickly to wash out the toilet cover – unfortunately it was the half bath so the sink was the only place available. The best that I could do was to get the festive Christmas red and white fur toilet seat cover back to more of a maroon and beige and then still half dripping back onto the lid which I propped up again and slithered away hoping that nobody would make the connection and blame me for it. Then I immediately got into my car without saying goodbye and drove like hell away from the scene of the crime.
Now before anybody gets a really negative idea about my character I must admit that I made the whole thing up but you get the point. I did however attend a party once where a lady from the office got so shitfaced that she passed out on the boss’s bed and then once the room started spinning out of control vomited a malodorous mess of jungle juice punch, egg nog and half-digested mini-meatballs and little smokies all over what looked to be a very expensive white fur comforter. Since I loathed both of them I laughed so hard that I nearly really did shit my pants.
If there is a silver lining to the coming economic collapse it is that the caterwauling little monsters at the mall will no longer be able to get everything that they want because daddy and mommy’s plastic is maxed out once and for all. This country has been submerged in shit largely because of the ignorant toxic waste generation who were children during the Reagan years along with their greedy, self-indulgent, boorish materialism who have for too long been taught that ignorance is a virtue and who have been weaned suckling at the tit of instant gratification. For the first time in these little spoiled brat’s lives they are going to finally learn the meaning of the word NO because after the dismal results for this holiday season are announced there will be more store and restaurant closures, commercial property defaults and millions of additional lost jobs as corporations continue to cut deeper to the bone with no further vision than the quarterly earnings statement. The corporations who rigged the system to monopolize America are now going to have to deal with something entirely new – a beggared population who can’t afford a pack of fucking ramen noodles let alone the must have junk and gadgetry that all children ages 3 to 70 with an available line of credit have become accustomed to. I really hope that the coming hardship and era of austerity will make better people of the average American (and this starts with the children) ‘consumer’ (I hate that term, it’s so fucking dehumanizing) as they are forced to live within their means and to enjoy the simple things in life. Hell, my grandparents and their generation survived a depression, fought a world war, were civically active and well informed and managed to create the most advanced and wealthy society in modern history before the baby boomers and Generation Reagan fucked it all up.
So you happy hosed Murkans this is it for this morning’s rant and for the rat bastard plague year of 2010 when even the illusion of being fucked with a smile was shattered. HO HO HO and may your holiday be bright.
Just my two cents over the morning cup o’ joe
ps: During a visit to my local Borders on last week’s Citibank sponsored shopping spree I was a bit aghast to see a pyramid built out of hundreds of Glenn Beck’s ghostwritten hunk of asswipe Arguing With Idiots (you know, the one with Dear Leader on the cover in a fucking East German Stasi uniform) along with smaller displays of Sarah Palin’s ghostwritten tome and for good measure another nice display of Glenn Beck’s Christmas Sweater book (a straightjacket would be far more appropriate). Borders and the rest of the retailers should just do the right thing and donate all of that overpriced, moronic drivel to the poor so that they can burn something in their fireplaces for heat this winter. Happy Holidays to All!
Monday’s White House meeting/public relations spectacle with the recalcitrant greedheads and other assorted banking miscreants was a mockery. As the orgy of American capitalist excess that is Christmas nears and millions of children won’t be visited by Santa Clause unless of course he is bearing a foreclosure notice on Daddy and Mommie’s overpriced, underwater shitbox the banksters are back in business big time thanks to Obama and Raht Emanuel. At some point last year when the financial services parasites were holding a gun to our collective heads and loudly threatening to ‘blow the roof’ like in Die Hard unless their bad bets were covered by taxpayer dough the overly cunning new administration, already funded by Wall Street looters made a calculated political decision to crucify the schmucks on a cross of Goldman Sachs. Hell, it’s no surprise, that is the way that it always works in an oligarchy and any O-Bots who are out there still defending this lying sack of shit administration are as clueless and morally challenged as those who swore on a stack of bibles that George W. Bush was the second coming of Jesus Fucking Christ and anyone who dared to question him was a terrorist sympathizer or traitor.
So the Pope of Hope’s vaunted White House meet with the destroyers of the country may have been good for the rubes and childish fools still drinking the Kool Aid of the Obamessiah to those of us that have been on to the big con can had our bullshit detectors going off full blast just as they have been doing often as the grifter in chief continues every fucking vile policy of the Bush junta only with a less ostentatious manner. Escalation of the war in Afghanistan to protect the energy and drug routes that are the lifeblood of the American ruling class, the continuation of torture as policy (although under Obama Jack Bauer is no longer the official spokesman), the ongoing Stasi style surveillance of law abiding citizens, shitting on gay rights, failing to pull the U.S. out of disastrous trade pacts and retaining Bush pigs like Robert Gates and Helicopter Ben Bernanke build a pretty damning case against Obama. Hell, after that speech last week in front of the Noble Prize Committee where the bastard actually had the chutzpah to get up and use the forum as a justification for neverending war it’s really only a matter of time until the neocons are back in the DemocRAT party where they came from. Oh, and about that health care reform? Face it suckers, you have just been buttfucked by the quisling Congress, the Israeli mole Joe Lieberman and the collective might of the insurance industry who are now about to strip out the only goddamned good thing – moving the Medicare age up to 55. Welcome to chumpland fools, thanks to the Obama administration and mobbed up Harry Reid the state is about to be empowered to force an impoverished citizenry to pay protection to the insurance gangsters or face the full fury of the law.
Were it not for legions of buffoons and Judas goat assclowns like Markos Moulitsas Zuniga on the so-called ‘left’ who provide cover for the gross criminality of the sitting government the Obama administration would be one and done but the cult of personality will be good enough to reelect the rotten bastard, especially since the only choice is Sarah Palin, Lou Dobbs or Glenn Beck any of whom are starting to look like better options than the Big O because shit, let’s face it, how much power would any of them be able to wield anyway? This lemming colony is owned lock stock and barrel by the Military Industrial Complex, the Wall Street cloud dwellers and Big Oil Nazis like the Koch Family and the Texas Mafia, always has been and always will be, the Prez is just a frontman and Mr. Obama is the most successful product since Ronald Reagan, another colossal phony whose acting ability was a cherished trait as he bamboozled our way into what is now the coming national bankruptcy.
So Monday’s sit down with the banking criminal elite, just like the rest of Obama’s putrid first year was just more stagecraft, especially considering that Lloyd ‘doing God’s work’ Blankfein and Shitibank’s top vulture Vikram ‘the bandit’ Pandit didn’t even bother to show up. That the entire bailout is now going up like a rancid flaming bag of dogshit parked on the front doorstep of 1600 Pennsylvania Avenue as the banksters aren’t lending but rather hoarding the money to fund more gambling and of course pay out those wonderful holiday bonuses is merely an ugly and slightly embarassing matter and only because the Republicans are suddenly screaming like stuck pigs about populism to rile up the rabble in the hope that they can return to running the spoils system – fat fucking chance. After Christmas has past and the teflon coated shit salesman that is Barack Hussein Obama and his fealty to Wall Street is forgotten by flea brained Americans it will be back to the business of finishing the job of implementing the new feudalism. Matt Taibbi who has been on Wall Street like a starving pitbull recently wrote about Obama’s Big Sellout and I would strongly recommend it to all.
Anyway, that’s it for now
Just my two cents over the morning cup o’ joe
The history of the last century shows, as we shall see later, that the advice given to governments by bankers, like the advice they gave to industrialists, was consistently good for bankers, but was often disastrous for governments, businessmen, and the people generally.
As the conventional wisdom goes, the stock market is predicated on trust and as a crusty old uncle of mine once said to a young and impressionable teenager with zero knowledge of the way that the world really worked: “trust me is just another two letter word that means the same as fuck you.” Old Uncle Harvey’s words of wisdom came home to roost on this Monday morning in America when the finance oligarchs were able to use their inside juice to pull off the grandest and most audacious heist yet in this season of sleazy swindles. Obama Treasury Secretary and Wall Street fixer Timothy Geithner delivered the bacon for the bankers, gave the crack ho stock market a wonderful and intoxicating fix that sent the Dow screaming up by nearly 7 percent in a matter of hours and locked in the losses for the great grandchildren of every poor schmuck with the misfortune to be living through this period of plunder and wealth consolidation.
In phase two of the ongoing SPLURGE (any similarity to the con-game called the surge that allowed us to become winners in Iraq is fully intentioned), on Tuesday night, our very own national Teflon coated bullshit salesman, President Barack Obama, the banker’s gofer and shill for the new generation began to sell it to the saps and a marvelous job he is doing. This man my friends is no new Roosevelt, he is the devil in disguise and he (as many progressives had warned) is in the bag for the establishment. What we really have is a by proxy continuation of the Clinton administration, of course Hillary was to have been the one but in the waning days of the ruinous Bush-Cheney neocon war on America it was just too tough to pimp another dynasty so the crooks who run the system found another pitchman. I cannot possibly articulate the sense of disgust and betrayal that I am experiencing as I write this, it is very difficult to restrain my gag reflex and keep from vomiting on my keyboard because once again the scum wins again and Americans have been played for chumps. Nobel Prize winning economist Paul Krugman(another Nobel Prize winner Joseph Stiglitz decried its “perverse incentives”) and columnist for the damned liberal New York Times put it best in his Monday column Financial Policy Despair:
Over the weekend The Times and other newspapers reported leaked details about the Obama administration’s bank rescue plan, which is to be officially released this week. If the reports are correct, Tim Geithner, the Treasury secretary, has persuaded President Obama to recycle Bush administration policy — specifically, the “cash for trash” plan proposed, then abandoned, six months ago by then-Treasury Secretary Henry Paulson.
This is more than disappointing. In fact, it fills me with a sense of despair.
But the Geithner scheme would offer a one-way bet: if asset values go up, the investors profit, but if they go down, the investors can walk away from their debt. So this isn’t really about letting markets work. It’s just an indirect, disguised way to subsidize purchases of bad assets.
The likely cost to taxpayers aside, there’s something strange going on here. By my count, this is the third time Obama administration officials have floated a scheme that is essentially a rehash of the Paulson plan, each time adding a new set of bells and whistles and claiming that they’re doing something completely different. This is starting to look obsessive.
But the real problem with this plan is that it won’t work. Yes, troubled assets may be somewhat undervalued. But the fact is that financial executives literally bet their banks on the belief that there was no housing bubble, and the related belief that unprecedented levels of household debt were no problem. They lost that bet. And no amount of financial hocus-pocus — for that is what the Geithner plan amounts to — will change that fact.
You might say, why not try the plan and see what happens? One answer is that time is wasting: every month that we fail to come to grips with the economic crisis another 600,000 jobs are lost.
Even more important, however, is the way Mr. Obama is squandering his credibility. If this plan fails — as it almost surely will — it’s unlikely that he’ll be able to persuade Congress to come up with more funds to do what he should have done in the first place.
This isn’t likely to win Krugman any friends in the Obama White House, especially with a sleazy little political gangster like Rahm Emanuel who I predict will eventually make even the Great Satan Karl Rove look like an amateur running the show and protecting the interests of his investment banker buddies. While Barack Obama may be the friendly Fozzie Bear face of this latest hostile takeover of the White House the real example of how things are really done is in this incredible NYT piece from back in January:
Early this month, Barack Obama was meeting with the House speaker, Nancy Pelosi, and other lawmakers when Rahm Emanuel, his chief of staff, began nervously cracking a knuckle.
Mr. Obama then turned to complain to Mr. Emanuel about his noisy habit.
At which point, Mr. Emanuel held the offending knuckle up to Mr. Obama’s left ear and, like an annoying little brother, snapped off a few special cracks.
The venomous cobra that is Emanuel is of course Mr. Obama’s minder and handler, note that he was the first announced member of the new administration, the first of a reoccupation of Washington by Clintonistas. The promised change, at least to this point has been strictly cosmetic, the wars still continue, more troops are headed to Afghanistan, the graveyard of empires past, Gitmo is still open, the new administration is engaging in Clintonian language manipulation regarding ‘torture’ that invokes memories of “it depends on what the meaning of is is”, the military is getting ready to be sent to the Mexican border and there has been no serious discussion of reigning in the run amok police state and the Stasi style high tech domestic spying operations. Yep, change has come to America alright, just like “the check’s in the mail”, “this won’t hurt a bit”, “I love you” and “I promise not to come in your mouth”…and it was all wrapped up in a big bundle of stinking dogshit with a $ sign on it and parked on the doorsteps of Americans and set afire by the Geithner-Bernanke-Paulson triad with the unarguable message that you are either cops or little people. Webster Tarpley had a good one that I heard that saving the banks is like trying to save one of Count Dracula’s victims by giving the blood transfusion to the victim through the vampire when the real remedy is to just pull him off and drive a stake through his heart.
It’s over — we’re officially, royally fucked. No empire can survive being rendered a permanent laughingstock, which is what happened as of a few weeks ago, when the buffoons who have been running things in this country finally went one step too far. It happened when Treasury Secretary Timothy Geithner was forced to admit that he was once again going to have to stuff billions of taxpayer dollars into a dying insurance giant called AIG, itself a profound symbol of our national decline — a corporation that got rich insuring the concrete and steel of American industry in the country’s heyday, only to destroy itself chasing phantom fortunes at the Wall Street card tables, like a dissolute nobleman gambling away the family estate in the waning days of the British Empire.
People are pissed off about this financial crisis, and about this bailout, but they’re not pissed off enough. The reality is that the worldwide economic meltdown and the bailout that followed were together a kind of revolution, a coup d’état. They cemented and formalized a political trend that has been snowballing for decades: the gradual takeover of the government by a small class of connected insiders, who used money to control elections, buy influence and systematically weaken financial regulations.
The crisis was the coup de grâce: Given virtually free rein over the economy, these same insiders first wrecked the financial world, then cunningly granted themselves nearly unlimited emergency powers to clean up their own mess. And so the gambling-addict leaders of companies like AIG end up not penniless and in jail, but with an Alien-style death grip on the Treasury and the Federal Reserve — “our partners in the government,” as Liddy put it with a shockingly casual matter-of-factness after the most recent bailout.
The mistake most people make in looking at the financial crisis is thinking of it in terms of money, a habit that might lead you to look at the unfolding mess as a huge bonus-killing downer for the Wall Street class. But if you look at it in purely Machiavellian terms, what you see is a colossal power grab that threatens to turn the federal government into a kind of giant Enron — a huge, impenetrable black box filled with self-dealing insiders whose scheme is the securing of individual profits at the expense of an ocean of unwitting involuntary shareholders, previously known as taxpayers.
There are plenty of people who have noticed, in recent years, that when they lost their homes to foreclosure or were forced into bankruptcy because of crippling credit-card debt, no one in the government was there to rescue them. But when Goldman Sachs — a company whose average employee still made more than $350,000 last year, even in the midst of a depression — was suddenly faced with the possibility of losing money on the unregulated insurance deals it bought for its insane housing bets, the government was there in an instant to patch the hole. That’s the essence of the bailout: rich bankers bailing out rich bankers, using the taxpayers’ credit card.
The people who have spent their lives cloistered in this Wall Street community aren’t much for sharing information with the great unwashed. Because all of this shit is complicated, because most of us mortals don’t know what the hell LIBOR is or how a REIT works or how to use the word “zero coupon bond” in a sentence without sounding stupid — well, then, the people who do speak this idiotic language cannot under any circumstances be bothered to explain it to us and instead spend a lot of time rolling their eyes and asking us to trust them.
That roll of the eyes is a key part of the psychology of Paulsonism. The state is now being asked not just to call off its regulators or give tax breaks or funnel a few contracts to connected companies; it is intervening directly in the economy, for the sole purpose of preserving the influence of the megafirms. In essence, Paulson used the bailout to transform the government into a giant bureaucracy of entitled assholedom, one that would socialize “toxic” risks but keep both the profits and the management of the bailed-out firms in private hands. Moreover, this whole process would be done in secret, away from the prying eyes of NASCAR dads, broke-ass liberals who read translations of French novels, subprime mortgage holders and other such financial losers.
The most likely scenario, should the Geithner plan go through, is a combination of looting, fraud, and a renewed speculation in volatile commodity markets such as oil. Ultimately the losses fall on the public anyway, since deposits are largely insured. There is no chance that the banks will simply resume normal long-term lending. To whom would they lend? For what? Against what collateral? And if banks are recapitalized without changing their management, why should we expect them to change the behavior that caused the insolvency in the first place?
The oddest thing about the Geithner program is its failure to act as though the financial crisis is a true crisis—an integrated, long-term economic threat—rather than merely a couple of related but temporary problems, one in banking and the other in jobs. In banking, the dominant metaphor is of plumbing: there is a blockage to be cleared. Take a plunger to the toxic assets, it is said, and credit conditions will return to normal. This, then, will make the recession essentially normal, validating the stimulus package. Solve these two problems, and the crisis will end. That’s the thinking.
Rome eventually understood that its imperial frontiers exceeded its resources and pulled back. This realization has yet to dawn on Washington.
More budget savings could come from a different approach to the financial crisis. The entire question of bailing out private financial institutions needs rethinking. The probability is that the bailouts are not over. The commercial real estate defaults are yet to present themselves.
Would it be cheaper for government to buy the shares of the banks and AIG at the current low prices than to pour trillions of taxpayers’ dollars into them in an effort to drive up private share prices with public money? The Bush/Paulson bailout plan of approximately $800 billion has been followed a few months later by the Obama/Geithner stimulus-bailout plan of another approximately $800 billion. Together it adds to $1.6 trillion in new Treasury debt, much of which might have to be monetized.
Could this massive debt issue be avoided if the government took over the banks and netted out the losses between the constituent parts? A staid socialized financial sector run by civil servants is preferable to the gambling casino of greed-driven, innovative, unregulated capitalism operated by banksters who have caused crisis throughout the world.
Perhaps the Federal Reserve should be socialized as well. The notion of an independent, privately-owned Federal Reserve system was never more than a ruse to get a national bank into place. Once the central bank is part of the state-owned banking system, the government can create money without having to accumulate a massive public debt that saddles taxpayers’ and future budgets with hundreds of billions of dollars in annual interest payments.