NEVER FORGET THAT THIS FINANCIAL CRISIS
Posted by PrestoPundit on 09/15/2008
was created by the interest rate policies of the Federal Reserve, and a set of left wing laws and institutions built by socialist leaning Democrats and big government Republicans, stretching from the New Deal and the Great Society to the Bush years. And make no mistake, Wall Street has been a partner in crime with these politicians and Fed board members, creating institutions and policies which funnel money to the super rich on Wall Street, and out of your back pocket.
Keep that in mind when you read what happened on Wall Street yesterday, and the latest attempt of the Federal Reserve to put a temporary fix on a failed and corrupt system — a system the Fed itself sent into an ruinous boom and inevitable bust cycle with insane interest rates set catastrophically below the natural rate.
Don’t think the system is corrupt? Sample the latest news coverage bubbling up out of Fannie and Freddie debacle. The folks in Washington are bought people, and few players have bought them with such a grip as have Wall Street and the financial industry.
The big mystery yesterday — why did BofA pay $44 billion for a company worth half that?
UPDATE: Bill Gross takes $1.7 billion of the Freddie / Fannie bailout loot. And the head of WaMu takes a $7.5 million signing bonus for a job well botched, a job he likely won’t still hold even before the year is out. But that’s nothing. Last year Lehman — now worthless — handed out $5.7 billion in bonuses, with the CEO taking home $22 million of that.
I’ve always argued that “To Big To Fail” + the murder of anti-trust law = the libertarian road to socialism. Here’s one more set of data points suggesting this other road to serfdom is morphing into the super highway to clepto-socialism in the financial sector. Imagine the BofA taking the place of Fannie and Freddie as a quasi-governmental organization with massive privatized profits and equally massive socialized costs and losses.