Posts Tagged ‘Bailout’

Sen. Elizabeth Warren, D-Massachusetts, and Sen. David Vitter, R-Louisiana, filed an amendment that would strip a provision from the $1.1 trillion government spending bill that will allow Wall Street banks to gamble with taxpayer money on derivative investments and receive government bailouts when the gamble fails.

Wall Street’s Senate Majority Leader Harry Reid made a procedural move to kill the Warren/Vitter amendment.

Bipartisan support for the Wall Street giveaway at taxpayer expense, which will redistribute income from the 99 to the 1 percent, passed through the US Senate in the midst of a $1.1 trillion spending bill that will keep the government up and running. Whoever put the provision in the bill refuses to take credit for it.

Now President Obama, a complete Wall Street president, needs to sign the bill, which he will likely on Monday.

The political and economic game is now rigged against the 99 percent more than ever before.

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A flutter of fear ran through Congress yesterday, desperately searching for a Democratic spine to run up. The flutter of fear found its target as President Obama sided with Wall Street and the Republican Party against his own Democratic Party, the Democratic base, and the American public.

When this Congress works together to get something done, it’s almost always on behalf of the 0.01 percent, and it’s almost always a profoundly bad one for the 99 percent. The omnibus spending bill that the House passed last night is just about the most corrupt and dangerous piece of legislation to come out of Washington in a long time. A few spineless Wall Street Democrats caved in to Republican hostage demands to avoid a government shutdown. So did Obama, the ultimate Wall Street Democrat. He could have sent a strong message with his veto pen to the 114th Congress since any deal this bad shouldn’t have gotten his signature, regardless of a shutdown threat from Republicans.

So what’s so bad about this deal that a government shutdown is preferable besides the fact that it was written in large measure by Citicorp lobbyists? A lot of things, but one stands out more than the rest.

The Republicans have stuck a little piece of legislation in the funding bill that will force taxpayers to bail out much of Wall Street derivative losses.

Financial derivatives are bonds backed by a real assets, such as home mortgages and student loans. Currently, there are $700 trillion in outstanding derivatives in the world, while the yearly world economy produces only about $70 trillion a year. The US derivative markets has about $230 trillion outstanding, compared to an economy that produces about $16 trillion in goods and services a year.

JP Morgan and Chase Bank hold about $150 trillion of this toxic financial wasteland called the derivatives market.

Should the derivative markets take a nose dive, under the Republican proposal, US taxpayers could owe the big banks a large portion of that $230 trillion. It’s going to be bailout time when the next recession hits. Massively rich, but remarkably stupid, investors know they don’t have make smart investment decisions since the taxpayers are going to be forced to bail them out. In other words, Republicans have decided to redistribute massive amounts of cash from the American middle class for years to come to the 1 percent should their gamble on these derivatives fail. President Obama also said yes to bailing out Wall Street in the future.

President Obama has always been a servant of Wall Street. Quite naturally, he was never likely to veto this budget bill, but one can always hope the president developed a spine and became an FDR or Elizabeth Warren type of Democrat for the American people.

This is bad policy for the nation, for the world, for the middle class, and basically for just about everybody except a few rich Wall Street fat cats. No doubt, some Democrats such as Wall Street Senator Ron Wyden will fight for this bill. Others, however, such as Sherrod Brown, Elizabeth Warren and Jeff Merkley will not do as Wall Street commands.

What else did Obama and his Republican Party agree to do in this budget?

The Republican Party and President Obama and a massive portion of the Democratic Party are all about redistributing income and wealth from the 99 to the 1 percent. Now the battle will go to the senate. There is some hope there to stop this madness.

Click below for the rest of the story.

Why President Obama Should Veto This Budget and Shut Down the Government–Readersupportednews.com

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Check out the link below for what really happened during the $26 trillion bank bailout of Presidents George W. Bush and Barack Obama. The comic above and the story below are examples of why the political and economic systems of the United States are nothing but games rigged against the 99 percent. The political systems, especially on the federal level, are totally corrupt.

The real bank bailout, believe it or not–Breakdown-of-the-26-trillion-the-federal-reserve-handed-out-to-save-rich-incompetent-investors-but-who-purchase-political-power–Johnhively.wordpress.com

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“As Ben S. Bernanke walks away from the Federal Reserve’s marble headquarters on the Mall here after presiding over his last policy meeting on Wednesday, he will leave behind a bittersweet legacy.

On one hand, his unprecedented efforts to drive down interest rates and stimulate the economy are widely credited by his peers with saving the nation from a second Great Depression, strengthening the economic recovery and leaving the nation’s financial condition poised to take off this year.

Yet those same policies have added momentum to one of the greatest surges in economic inequality in US history, helping the wealthiest Americans add to their enormous riches while the incomes of almost everyone else stagnated.”

What isn’t mentioned in Bernanke’s legacy is the probable wholesale corruption going on at the Federal Reserve. The primary purpose of the Fed appears to be to shield rich investors from any market forces they encounter that lessons their wealth. In other words, the Feds primary responsibility appears to be to rescue the rich from their own foolish decisions. This has opened the door to what appears to be a massive amount of corruption, both in the Fed and in the US government. See Breakdown of the $26 Trillion the Federal Reserve Handed Out to Save Incompetent, but Rich Investors–Johnhively.wordpress.com

As for the rest of Bernanke’s dubious legacy, click on the link below.

Ben Bernanke Leaves Legacy of Stimulus and Stagnation–The Sydney Morning Herald

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On the Backs of Whom?

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A deal has been reached between the Greek government and the rest of the Eurozone. Greece will get a series of loans that should save it temporarily from defaulting on government bonds; the deal will also ensure Greece will move deeper into misery and that the current recession that began five years ago will get worse.

Unemployment is already at 20 percent. It will grow because the new austerity measures include slashing pensions and lowering the minimum wage from 751 to 580 Euros per month. That’s called slashing the demand for goods and services. That’s called increasing misery. The Greek government is facing insolvency, dissolution and probably revolution in the coming months.

The Euro is good for the European banksters, but bad for the people of Greece. The Greek politicians know this.

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Greek Bailout Deal Edges Nearer as Greece Disolves Like Alka-Seltzer in Water

European governments are giving Greece a bailout. However, the best thing for Greece is to leave the Eurozone and reestablish its old currency. That way the Greek government will be in charge of stimulating its economy. The government is selling off islands and ports in order to stay afloat. That won’t work, except perhaps in the short run. Greece’s problem is simple. It can’t stimulate its economy using fiscal policy. At some point, Greece may need to leave the Eurozone, along with most of the zones other nations.

click here for the complete story

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