David Stockman asks this question, though he knows the answer.
Surprise, Hank Paulson thinks the rabble, now empowered by new media, are counter productive to the great “debate” the country is having. Better to leave it to the Masters of the Universe like him.
Washington made a decision 5 years ago to abandon most Americans and to cozy up with the crony capitalists on Wall Street. They rejected the voice of the American people in the Fall of 2008 when they began the bailout bonanza.
The key is not to bat an eye and to act like everything is cool. Be unapologetic but low key key and the serfs will eventually put away their pitchforks.
And by poorly managed banks we mean pretty much every big bank on the planet. For instance we now know that nearly half a trillion from the United States Federal Reserve was GIVEN to foreign banks. Given to them. Not even loaned at a penalty rate. Just given. How many people lost their homes now? But half a trillion was just handed to banks which aren’t even nominally “American.”
Robert Lenzner at Forbes would like to know about a few things.
(But don’t worry, Cyprus was an exceptional case.)
The article goes on to say that the bailout of Fannie Mae and Freddie Mac was good because it helped buoy the housing markets. It does say that the bailouts were not free of cost however because of the moral hazard the US government has enabled.
One more dose of David Stockman today. Suddenly Fox Business News wakes up (after reading the former OMB chief’s new book) to discover that we’ve been completely jacked by the big banks.
You the tax payer, you do not matter.
The mega-banks are “mega” because the government helped make them that way. Instead of letting the big banks fail in 2008, Hank Paulson swept in and backstopped them, bailed them out, even though the market was trying to correct for years of stupidity both from Wall Street and Washington. The universe wanted to break up the cartel, but the government would not let it.
Looks like the “Pay Czar” is being a little loose with the purse strings. The bailouts were so long ago. How can we expect these executives to get by on less than a million dollars a year?
The Wall Street Journal got this right in an editorial today:
Ron Paul is no fan of Mitt Romney to be sure, but he makes a good point about the way the vote went on Tuesday.
In the attached article John Tamny at Forbes.com explains that there was no need for the bank bailouts.