-- Posted Wednesday, 4 November 2009 | Digg This Article
| | Source: GoldSeek.com
The title of the major bailout program clearly shows just how little Wall Street and Washington understand about the free markets. TARP or “Troubled Asset Relief Program”. Sorry, but there is NO SUCH THING. Everything sells in a free market at a price that somebody is willing to pay, stick the mortgages on Ebay and trust me, they will sell, at what price who knows? That is for the free market to decide.
They are only “troubled assets” because the bankers do not like the valuation that the free market is putting on all this junk. Which is why we have had TARP, which is nothing more than socializing the Bankers losses. It is disgrace.
Nobody forced these bozos to lend all this money to people touchingly known as NINJAS or NO INCOME & NO JOB. Personally, I would expect a detective to deduce that the risk profiling of lending a lot of money to somebody with no income and no job is not good. Then leveraging up these loans with a whole host of dubious derivatives was little more than suicidal. However it is the free market, so it was the free choice of the banks to make these suicidal loans and the derivatives they pyramided on top. The flip side of this trade is that when these loans and derivatives inevitably went bad don’t come crying and whining to the Government for bailouts. Take it on the chin, like any other business in America, because:
You messed up, YOU FAILED. Make no mistake the whole of Wall Street was a giant Bear Stearns or Lehmans, and those that survived did so only with handouts.
It would be a very interesting exercise. To work out over the last 20 years, The total tax take from Wall Street against the total bailout amounts? I suspect you would find that Wall Street has been nothing but a very heavy lead weight for America. I would also suggest that it would be a far better use of many highly educated people to actually go and do something productive and beneficial for society, rather than being little more than parasites off the real economy, in a glorified Casino.
Now we are told that this “talent” deserves these huge bonuses, these are the very same people, sorry “talent” that drove their companies without exception into BANKRUPTCY. These same companies and therefore all this “talent” have survived only because of the kindness of Taxpayers via Government Welfare Payments for Wall Street firms. The only rational and sane conclusion that can be drawn is that America would be far better off without this “talent”.
Wall Street has survived this last year on state benefit, and that is an UNDENIABLE FACT. People living on welfare do not get multi million dollar bonuses.
It is very obvious to Wall Street from the S&L crisis, the DOT Com fiasco and the latest housing debacle that it does not matter what they do, what risks they take because they will always be bailed out, because they are too big to fail. Well Done Reagan, Bush Senior, Clinton, Bush Junior and now Obama you have created a gigantic MORAL HAZARD.
If they are too big to fail, they are too big to exist. BREAK THEM UP. No Government and no people deserve this gun to their heads. These people simply do not understand that the ordinary person is sick and tired of Wall Street and sick and tired of their attendant subservient lapdog Politicians.
It is very obvious and it is very clear to see that America is no longer a Democracy in any shape or form. It is a financial Oligarchy of the few, and only for the few.
-- Posted Wednesday, 4 November 2009 | Digg This Article | Source: GoldSeek.com
