Thursday, December 1, 2011

A Scandal Too Far

Hank Paulson
I'm going to follow this, the story of the $7.7 trillion in loans to the largest banks in the U.S. to help them through the financial crisis in 2008 (haven't totally sussed the timeline yet). And that's in addition to, or subordinate to, the TARP's $780 billion.

The figures are flabbergasting. I'm speechless because I don't know where to go with this. Wait, yes, I do. It's criminal. I can't immediately point to the laws involved, but, okay, I've had stock in all the banks in question, and, to put it bluntly, MOST OF THAT STOCK IS CURRENTLY WORTHLESS. Some law must have been broken. But I'm not sure the Justice Dept. cares. Wait again. I'm sure they don't care because it was the Treasury Dept. and the Fed that were responsible for the funny paper. Eek. Eric going after Timmeh. I don't think so.

Robert Rubin
Just so you know, the Fed made money available to the biggest banks at the so-called discount window at .01% and then let the banks lend it back to the government at, oh, say, 3%. Rather quickly the banks made at least, so far as we know, $18 billion in profits. From, by the way, us, assuming you agree that the federal government are us.

I'd already thought about writing a post on Hank Paulson, Jon Corzine, Robert Rubin, and Lloyd Blankfein detailing the crime-spree road trip of all time from Goldman Sachs to the federal government and back again, but now I'm wondering if we've shrunk statutory limits on bank fraud to ten minutes if the Treasury or the Fed is involved. New rule: if it's plausible, it's legal, go home, especially if our rich buds are involved. Nobody got hurt, we all continue to be rich, you're poor middle-class schlubs, didn't have a prayer to begin with (see American Dream=????). It's our money, our cronies, and we saved the world. Okay, lots of ordinary people got reamed, but our job is to save the world, not people. Well, okay, our really rich friends. They're the job creators.

No, they're not. They're sodomists with big fat money clips. It gives a whole new meaning to duck and cover.

LLoyd Blankfein

No comments:

Post a Comment