Posts filed under “Bailout Nation”
Is there a single doubt left in your mind?
Are you still a believer in
Rufus T. Firefly Jamie Dimon as the world’s smartest banker?
Is there a scintilla of wonder left in your mind that the giant banks are legitimate?
Have you come around to understanding — finally — what some of us have long understood about banks?
Are you willing to accept the truth about these corporate behemoths — that they are a horrific combination of economically dangerous, criminally inept, led by pathologically lying CEOs?
Do you harbor any doubts that the giant banks are anything less than ruthlessly efficient criminal enterprises?
Can you — finally — admit that our bank-created financial crisis of 2008-09 has led us to where we are today?
Do you understand the only options presented as a result of that — either corporate bankruptcy and nationalization or a completely artificial Fed driven recovery? (The third option was a Japan-like multi decade recession). Do you realize that the feeble recovery, the slow, deleveraging-driven process of gradual economic healing was the result of how our policy makers chose?
Do you recognize that the world of banking is divided into two camps?
On one side, there are those who understand that the giant banks must be broken up. They are dismayed at the large banks under-capitalization, over-leverage and opacity. These folks have figured out that these banks are not only too big to fail, but are so large that they are too big to succeed, and that the best route is to let insolvent banks fail. They are unhappy that our finance sector is a trillion dollar black box. They know that the majority of giant banks’ profits come from bailouts, and subsidies. This group is dismayed at the corruption of our political system by financiers. They understands huge banks are anti-competitive, a blaspheme against capitalism. They are shocked about corruption of even the most fundamental measures of interest rates such as LIBOR. They are stunned that bankers have overturned a bedrock, fundamental principle of our society — the rule of law rule — with the threat of disrupting the world’s economy if prosecuted for their crimes.
On the other side lay the bank apologists, corrupted politicians, and crony capitalists. They advocate the Big Lie of the financial crisis. They choose to ignore the facts and data that disprove their narrative. They continue to push the lies that the bailouts were a good investment. (They weren’t). They work against the Bipartisan consensus that the giant banks should be broken up. They ignore the many former bank CEOs who call for the break up of “Too Big to Fail” banks. They mandated that GSEs were banned from Lobbying, but they made sure that the big banks retained their influence peddling and hold on Washington DC.
They no longer represent the voters of their districts, but instead are the elected representatives of Bankistan.
And unless we do something — and soon — they will vanquish America.
Source: CNN Money It is the silly political season, and while each side levels accusations at each other, neither wants to admit the simple truth: Both political parties helped to create the credit crisis (In Bailout Nation, I put it about 55/45). The Obama administration underestimated the depth of the recession, and failed to…Read More
Now that its been announced, I can share some details with you about Aaron Task, Yahoo Finance‘s new and first Editor-in-Chief. I have known and worked with Aaron for over a decade, beginning with my early days as a contributor to TheStreet.com. Aaron was the Managing Editor — and one of those rare birds who…Read More
I am please to report that calling out the Big Lie has now gone fully mainstream. Recall last month, I had two Big Lie columns in the Washington Post: • What caused the financial crisis? The Big Lie goes viral. • Examining the big lie: How the facts of the economic crisis stack up The…Read More
Well, at least about this one thing: She and I are quite sympatico — at least when it comes to criticizing the Bush troika (Bush/Paulson/Bernanke) for the absurd bailouts of failed banks: “The Bush administration … was embracing a kind of ‘bailout socialism,’ ” wrote the Minnesota congresswoman, who is running for the GOP presidential…Read More
Reason has a critique of The Big Lie column. It was so disingenuous, I did something I rarely do: I sent an email to the author and editors at Reason. It went something like this: I was disappointed to read your comments about my “Big Lie” column. You seem to have completely misread who I…Read More
The WSJ called out Mitt Romney for repeating the Big Lie in the CNBC Presidential debate: “Markets work. When you have government play its heavy hand, markets blow up and people get hurt,” Mr. Romney said, blaming Democrats for rules that he said force banks to make ill-advised loans. Some conservative academics have said that…Read More
Morgan Stanley in a free fall. Goldman Sachs at multi-year lows. Citigroup looking Ugly. Bank of America off 50% from recent highs. You may be wondering what is going on with the major firms in the financial sector. While each of these firms have different problems — vampire squids to Countrywide acquisitions — they all…Read More
> I continue to be of the mind that the Wall Street Bailouts were misguided, and that a massive Swedish style reorg would have been the best thing for the nation and the economy in the long run. Both Uncle Sam and the Fed would have provided the broad based debtor in possession financing required,…Read More