Federal Reserve & Corporate Welfare
Sunday, March 16, 2008
Just last week the Federal Reserve gave Bear Stearns a huge bailout to keep the large investment bank afloat with hopes that Wall Street wouldn't take another hit. Along with the Fed, JP Morgan said they would assist Bear Stearns as well but come Sunday nite, Drudge reports that JP will buy Bear Stearns for $2 a share or $236 million. Mind you, Bear Stearns was worth over $3.45 billion just a month ago but due to the toxic subprime mess their shares have dropped. This sounds like a bunch of Wall Street blather than doesn't mean much to the average person but when you look deeper you see how we have been duped by the White House and Wall Street.
JP Morgan will purchase a competitor of theirs for pennies on the dollar and will have the luxury of the Federal Govt taking care of the debt and mess that put the bank in trouble in the first place. So JP scored an amazing deal and all of us are stuck paying for it. I used to think that Republicans believed in free markets and govt intervention was frowned upon. I guess when it comes to making a backroom deal and having the govt foot the bill, Republicans love a good bailout.
If you take a look at this whole credit crisis from the beginning, the White House was hands off when it were only poor folks in the subprime market losing their homes. No intervention was needed because the market would take care of it. When the foreclosures escalated upwards to the idiots who purchased the $500,000+ homes and started to default, the WH decided it was time to act. Now banks are failing and the WH is all over it, time to save them and forget about free market capitalism. You can see parallels here to many decisions made by this WH over the years, they ignore the poor folks of the country but are willing to spend our tax dollars on helping out their own friends and supporters. Its not enough to help the poor folks, it was their fault, but when rich folks overextend themselves we better act because they may have been taken advantage of.
Bear Stearns won't be the only bank to default, there will be others and the Fed will be there to bail them out. What really kills me is how the Republicans and Bush refused to fund SCHIP, health care for children but they believe its alright to help out a fellow Wall Street tycoon. These are where the priorities of the Republican party are, help a buddy score a sweet ass deal at the expense of the tax payers while screwing over little children. I would like to see those who opposed the expanded funding of SCHIP defend this bailout. Lets hope Obama and other Dems pick up on this and expose the Republican party for the frauds that they are.
Posted by mardenhill 3/16/2008 08:37:00 PM
Labels: Politics
1 Comment:
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1:24 PM
There are lot of people in the Mid-west deeply believed in Republican propagandas about the wonderful Capitalism, free market system. They chant the mantra that private industry with market competition will solve all the problems in the world. They are just too stupid to realize that the so called Capitalism in the US is just a form of corporated socialism or corporation welfare. Instead of helping the poor and the helpless people, the government scorns them and give BIG money to the wealthy people. Subsidies, tax cuts, and genereous tax deduction are just a few other methods of giving money to the tycoons. In return they contribute big money for their political campaign. All the so called political think tanks which propagate those phrases such as "small, conservative, pro-business government is the best", or "giving corporation tax cut to create job", ...blah blah blah are paid by special interest groups. The media which also owns by big corporation helps spreading those myths/propagandas. Majority of people are too dumb to see through smoke and mirror, thus quote and repeat the quotation like parrots.
