The Stealth Bailouts Continue

The attached piece from Washingtonsblog.com is extremely well done and informative.

As I was reading about how TARP has actually not been paid back completely and is likely  in the end to cost the taxpayer $60 billion at least, I stumbled across another gem.

Below is one of the best explanations and documentations I have seen of how the big banks continue to be bailed out.

What is particularly good is that the author peels things back a bit and exposes how many programs, sold as benefiting the public at large, such as the recent Freddie and Fannie settlement, actually just represent another filling up of the trough.

The author also identifies how fraud on a massive scale is becoming a business model.

He writes:

The government has not only turned the other cheek, but aided and abetted the fraud. In the words of financial crime expert William K. Black, the government “created an intensely criminogenic environment.”

If there is any area where crony capitalism has done and continues to do the most damage it is in the financial sector where there are absolutely no checks on what is going on. The Federal Reserve keeps the cheap (essentially free) money going benefiting a very narrow group of financiers, while the rest of the population must deal with the fallout, including increasing inflation.

Click here for the article.