Posted by: Rob | February 3, 2010

The Big TARP Lie

Up here in Canada, we don’t much like our big banks either.  Especially when they report growing profits year after year that now run into the billions of dollars, all the while running up fees and service charges on their customers.  But, at least, they’ve been harnessed by regulations and are not allowed to do things in the pursuit of “profit”, i.e. something for nothing, that would bankrupt the nation or threaten to cause the collapse of our economy, such as it is.

Found this compelling editorial comment by Dylan Ratigan on Zero Hedge.  Even though this was on main stream media, I’m betting that a lot of people didn’t see it and probably most of those wouldn’t understand it (or believe it) anyway.  Unregulated free financial markets with little to no oversight are simply breeding grounds for fraud and theft.  How much longer will Americans stand for it?

Transcript of Ratigan’s editorial, courtesy of Zero Hedge:

The president continues to say in public that banks have almost paid Americans back. That is a lie. The fact is the TARP which congress approved is only 2% of trillions of dollars in free money being provided to our banks by the Federal Reserve and our Treasury. The American people know this. They know that they are subsidizing our banking sector. And yet the TARP lie continues to be spread by our politicians. Our problem, Mr. President, is either you don’t understand it, which I doubt, I’m sure you do. You don’t want the American people to understand it, which would be understandable, although I also doubt that. Or perhaps you are doubting no one will notice all the other support and the big spending from the Fed will make the whole thing go away, which I think is what is really going on. But I am here to tell you the problem will not go away until you actually fix it. You see, we know, the American people know, that the CEOs of the banks turned into casinos, like Goldman Sachs, JP Morgan, Citi and AIG have paid themselves hundreds of billions of dollars building the debt bombs I was just talking about and exploiting the zero percent money from the Fed and the free money they get from the Treasury. The rewards for this go to bankers in the form of compensation, particularly the CEOs who decide how much risk the banks can take. Meanwhile the risks those banks take, ultimately the losses on all their gambling, go to us, the people and are harvested from our labor in the form of taxes. And worse the extraordinary returns offered by the bankers’ fraudulent practices are like a black hole for America sucking money that would otherwise be getting invested in our country, but why would I go to the trouble of dealing with the investment when I have a funny money machine legalized by the government that’s done in secret at the bank. Adding insult to injury the same giant banks are using the free money access granted to them by the political body to lend to foreign countries that seek to compete with us. The banks do this because it’s more profitable for the bank CEOs to lend to them than to go to the trouble to lending to America even if it’s coming at America’s expense. Why would we, the people, vote for you, the politicians, to do that to us. It’s beyond my comprehension and I suspect almost every other American who understands it.

By the way, I made a quick visit to http://thedepressioniscoming.blogspot.com (which is text embedded in the above video) and found it to be a conflagration of depressing main stream news story.  And for me to call it a depressing site, let’s just say that that is saying something.

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Responses

  1. credit unions are a gentle step in the right direction… almost all of my banking is done via credit union. profit is redistributed annually to the members… and no thanks momentarily about the depression-is-coming site. i’m already draggin’ the ground for other reasons… will possibly get there the next time i am in need of a slap from the reality police…

  2. I go back and forth on “the depression is coming” b/c I know it is and I still naively think that it will confine itself to the U.S. and that they won’t become hostile and threatening when it arrives.


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