Rolling Stone’s Matt Taibbi: Secret and Lies of the Bailout

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Secret and Lies of the Bailout

The federal rescue of Wall Street didn’t fix the economy – it created a permanent bailout state based on a Ponzi-like confidence scheme. And the worst may be yet to come

It has been four long winters since the federal government, in the hulking, shaven-skulled, Alien Nation-esque form of then-Treasury Secretary Hank Paulson, committed $700 billion in taxpayer money to rescue Wall Street from its own chicanery and greed. To listen to the bankers and their allies in Washington tell it, you’d think the bailout was the best thing to hit the American economy since the invention of the assembly line. Not only did it prevent another Great Depression, we’ve been told, but the money has all been paid back, and the government even made a profit. No harm, no foul – right?

Wrong.

It was all a lie – one of the biggest and most elaborate falsehoods ever sold to the American people. We were told that the taxpayer was stepping in – only temporarily, mind you – to prop up the economy and save the world from financial catastrophe. What we actually ended up doing was the exact opposite: committing American taxpayers to permanent, blind support of an ungovernable, unregulatable, hyperconcentrated new financial system that exacerbates the greed and inequality that caused the crash, and forces Wall Street banks like Goldman Sachs and Citigroup to increase risk rather than reduce it. The result is one of those deals where one wrong decision early on blossoms into a lush nightmare of unintended consequences. We thought we were just letting a friend crash at the house for a few days; we ended up with a family of hillbillies who moved in forever, sleeping nine to a bed and building a meth lab on the front lawn.

Rest here…

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4closureFraud.org

Comments
4 Responses to “Rolling Stone’s Matt Taibbi: Secret and Lies of the Bailout”
  1. c.l.p.a.g. Chris says:

    No Surprise; With The Thief in Chief don of the Chicago MOB His Archon Shill Shyster Liar Lawyer Attorney Mouthpiece as: U.S. Attorney General, Fixer Extraordinaire Cover UP artiste:

    Banks NO problem; Vote Fraud No problem; Fixing Elections NO problem; FAST and FURIOUS Drug Running to Mexican Revolutionary Narco Terrorist InfilTraitor Drug Gang Racketeering CoCON-Spiritors, No Problem; BengHAzie Murder Death Kults, NO Problem; Take Over America No Problem; Talmudic One World Communist Slave New World Order, No Problem? Pray for DEVINE Intercession, No Problem?

  2. indio007 says:

    I don’t think may really understand the gravity of what Matt is saying.

    I’ll break it down.
    The economy was 4 Trillion dollars in 2008
    The banks borrowed money at 5%
    That $1.4 trillion is parked at the FED at .25% interest. (according to Matt “before the bailout began, there were just $2 billion in excess reserves at the Fed”)

    This is a money losing proposition no?

    Why take 30% of the US economy and simply sideline it ESPECIALLY if you are losing money by doing it?

    Banks make money via interest rate arbitrage so this is no accident.
    There can only be one of 2 purposes.
    1. intentionally lose money.
    2. Take money out of the economy (creating an artificial shortage).

    It must be #2.

    From 2 billion in sidelined money to 1.4 trillion 4 years…. WHY?

  3. Sarah says:

    As descriptive and graphically entertaining as Taibbi is, it’s much worse. Better to just laugh at the appalling level of aggression : “none of the bailout’s architects gave a shit about homeowners” Wall Street had two or more wars going on at once, it would taboo to suggest our representatives took orders directly from the owners, but not many people wanted this bailout and it isn’t accurate to say anyone was tricked other then the American people.Santelli’s rant was not “spontaneous” as the groups responsible were FIRE sector fronts who saw an immediate threat, and God forbid, some kind of possible recourse towards their criminal behavior and have blamed the victims for years. They continue to do so.
    Taibbi should know, or at least write, that this is what they do when they bomb civilians. Banks didn’t need the TARP money just to “survive” Capital One for example helped itself to Chevy Chase, a thrift driven into failure. BOA allegedly was forced to take on another mafia lender “Countrywide”. (etc, etc) What you have is an ineffective bought off Justice and Political system that at the highest level of power simply threw the fallout in people’s faces. A leadership of fools who have sold any hope of Democracy to the highest bidders.

  4. Herman Vergara says:

    I think: It’s an outrage HSBC Bank USA hasn’t had its U.S. banking licenses revoked for “MONEY LAUNDERING” around the world. Bank crime shouldn’t pay.

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