January 29, 2009
-- by Dave Johnson
Obama's economic team does not see themselves as working for the PEOPLE of the country, they see themselves as defenders of the Wall Street Elite. In the words of the new Treasury Secretary, "we’d like to do our best to preserve that system."
This is the justification for the new plan to just use government money to buy up all the bad loans made by the big Wall Street firms. They screwed up the economy. WE pay for it. They stay rich. We get ever poorer.
From the referenced post,
Consider this statement from Geithner, who said that Treasury is considering a “range of options” for its financial rescue plan, with the goal of preserving the private banking system. “We have a financial system that is run by private shareholders, managed by private institutions, and we’d like to do our best to preserve that system.”They are trying to avoid "nationallizing" the banks. But what that means is that the government takes them over, reorganizes them, and then privatizes them again -- in the process wiping out the current shareholders and selling the good parts to new shareholders.
This is what we have always done with bad banks. This is what the FDIC does. This is what we did in the S&L crisis. But they don't want to do that this time.
What they are doing instead is using taxpayer dollars to prop up the current shareholders. The ones who currently own insolvent banks will receive an infusion of taxpayer dollars.
But not the people who are losing their homes, jobs, health care. God forbid THEY should get something. All they did was pay their taxes. Unlike the current Treasury Secretary.
Posted by Dave Johnson at January 29, 2009 9:33 AM
How much more concise can this be put? Nicely done.
Posted by: WebHubTel at January 29, 2009 7:04 PM
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