Fed: Responsibility Still For Little People
Posted in Main Blog (All Posts) on July 9th, 2008 4:40 am by HL
Fed: Responsibility Still For Little People
It’s a hard job. But someone has to keep the money spigots open and ensure executives and hedge fund operators keep raking in huge bonuses for driving their companies into insolvency and crashing the economy.
Seems the Fed may not be ending those temporary loan facilities yet.
Translated Fed:
What, you were stupid enough to think there was even the smallest chance that we wouldn’t extend the lending facility where we take in securities so worthless that no one in the private sector would buy them, and lend back grade-A securities worth 99 cents of the face value Wall Street can’t get from anyone else?
We here at the Fed exist to make sure that when Wall Street and the Banks are given as much money as they need. In good times they get all the profits from the free money. In bad times, when the stupid loans they’ve made, the lousy securities they’ve issued and the bad trades they’ve engaged in come back to haunt them, you can count on us to make sure that bonuses keep flowing and as few rich people get hurt as possible.
The truest principle of capitalism is that the rich should make the profits in the good times, and in the bad times, ordinary people should pay for their losses. Heads Wall Street wins, tails taxpayers lose.
It’s a hard job. But someone has to keep the money spigots open and ensure executives and hedge fund operators keep raking in huge bonuses for driving their companies into insolvency and crashing the economy.
Responsibility, just like bankruptcy, is for little people.
Big people have personal bankers like Helicopter Ben Bernanke and Alan “Bubbles” Greenspan to make sure that the buck never, ever, stops at the top.
