Monday, December 06, 2010

Banking System Rigged to Blow if We Do Not Continue Bailing Out the Wealthy.


If you took the $1.4 trillion that was initially spent to bail out the banks and distributed it amongst financially troubled Americans, each person would receive close to $400,000.  Even better, if you took the $3.3 trillion recently reported by the Federal Reserve to bail out international as well as national banks and corporations, and distributed amongst financially troubled Americans, each person would receive close to $1 million!

Keep in mind that most of this money would be spent immediately, thus returning it to the stream of purchasing power so crucial to the economic flow.  Without a doubt, new jobs would be created as aggregate demand would increase.   Obviously, it's not that simple, however it demonstrates how rigged our financial system is to favor the wealthiest Americans.

We live in a country that has enjoyed more wealth than any other country in human history, yet we live amidst rampant unemployment, with one in six people living in poverty, and millions of people living without health insurance. We, the ordinary Americans are left to fend for ourselves while the wealthy get bailed out for "being evil".  Why? Because our banking system is rigged to blow up the global economy if we do not continue to bail the rich bastards out. Wait, isn't that what terrorists do?

Consider the following excerpt from  Marketplace:
Kai Ryssdal from Marketplace: "...the news this week that the Federal Reserve released all of those documents on Wednesday...we now know who borrowed how much and at what times.  Here's the thing though, John, as much as the WikiLeaks cables at the State Department show that our diplomats say nasty things about other countries, does it matter that we know Goldman Sachs went to the Fed 84 times?"

John Carney from CNBC: "I think it matters in that it shows how severe the financial crisis really got. That even relatively healthy banks had to depend on the Fed for funding in late 2008.  I think that is a good reminder that things were really, really, really were awful, and measures that the Fed took allowed a lot of these banks to actually stay alive.  It's very clear from the numbers that Morgan Stanley was dead. They borrowed so heavily from the Fed's facilities because there was no other way for them to continue to operate. 

Kai Ryssdal from Marketplace: What about that?

Lee Gallagher of Fortune magazine: What also was really interesting about that dump that it really drove home that it was not just the banks. It was companies like Verizon and Harley Davidson and GE and we knew back then that the commercial paper market had frozen up but most people really don't know what that means. What we see now is that companies like Harley Davidson couldn't make their payroll and needed to have those facilities."
"Need to have those facilities?"  Need??  Well, what about our needs? I thought this country belonged to us.  What about when things get really, really, really awful for us  ordinary Americans? What about when we the people can no longer operate, or survive because terrorist bankers stole our money, our jobs, our quality of life? Where is our "facility" that disperses money at 0%, so that we can loan it out at three-four times that amount?  Well?

1 comments:

Anonymous,  16:27  

I love that picture because the banksters are the true terrorists. They effect our lives much more than the so-called international terrorists that our government must molest us for.

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