Wall Street’s Bailout Hustle
Goldman Sachs and other big banks aren’t just pocketing the trillions we gave them to rescue the economy – they’re re-creating the conditions for another crash
Palm Coast, FL – March 24, 2010 – Thanks to a GoToby.com reader for sending me the following link to a great piece posted February 17 on Rolling Stone.com in which MATT TAIBBI compares Wall Street shenanigans to the classic cons of history. Warning: the article is lengthy and laced with colorful language but it’s definitely worth the read. The link follows this short excerpt.
Matt Taibbi: Rolling Stones.com (Feb 17, 2010)
The only reason such apathy exists, however, is because there’s still a widespread misunderstanding of how exactly Wall Street "earns" its money, with emphasis on the quotation marks around "earns." The question everyone should be asking, as one bailout recipient after another posts massive profits — Goldman reported $13.4 billion in profits last year, after paying out that $16.2 billion in bonuses and compensation — is this: In an economy as horrible as ours, with every factory town between New York and Los Angeles looking like those hollowed-out ghost ships we see on History Channel documentaries like Shipwrecks of the Great Lakes, where in the hell did Wall Street’s eye-popping profits come from, exactly? Did Goldman go from bailout city to $13.4 billion in the black because, as Blankfein suggests, its "performance" was just that awesome? A year and a half after they were minutes away from bankruptcy, how are these assholes not only back on their feet again, but hauling in bonuses at the same rate they were during the bubble?
The answer to that question is basically twofold: They raped the taxpayer, and they raped their clients.
The bottom line is that banks like Goldman have learned absolutely nothing from the global economic meltdown. In fact, they’re back conniving and playing speculative long shots in force — only this time with the full financial support of the U.S. government. In the process, they’re rapidly re-creating the conditions for another crash, with the same actors once again playing the same crazy games of financial chicken with the same toxic assets as before.
Toby’s Commentary: Those of you who, like me, are simply trying to work through this housing mess, hanging on until things get better, are probably wondering if there is really anything we can do. It seems that the credit crisis has less to do with how much money is available to lend and more to do with what’s the next Wall Street scheme to "earn" bonuses.
Fox in charge of the hen house
There was and is no question that white house has appointed former wall street excutives to "straighten out" the situation. That was a big mistake, but who do you think elects the president and all the congress. Money has always ruled this country, the people can only vote for nominated politicians all being backed by special interest.
Romney
Pick up Romney’s new book, read it, and vote for the right guy next time. He would not allow this cast of characters to continue working this way.