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The alleged purpose of the various bailouts was to stabilize the economy and to set the groundwork for a recovery. However, the reality seems to be that the bailouts are enriching the financial companies at the expense of the taxpayers.
While the massive gifts of cash to these companies are a thing of the past (for now), they are now able to exploit incredibly low interest rates to generate significant profits. The banks are also apparently still able to profit from their toxic assets, including entire banks, by getting taxpayers to continue to take care of their problems.
This is hardly surprising. Despite all the talk about the Democrats being socialist and Obama being anti-business, the fact seems to be that things are just as they have always been. The folks in power, in general, see to it that the financial companies are well taken care of and that taxpayer money gets funneled to the right places.
This transference of money from the taxpayers to the financial folks seems to be rather unfair. After all, the financial folks were largely to blame for the financial mess. They also seem to be doing nothing to really earn this money, but rather are simply being handed profits at the expense of everyone else. Given the large number of unemployed Americans, it would seem a better choice to use the money to help them, rather than to pile even more profits into the corporate coffers.
As a final point, given the rather large federal deficit, it would seem to make sense to curb the channeling of money into these financial institutions. After all, why should the nation go into debt so that these few might profit even more?
Mike, you’ve achieved satori. Welcome to the Tea Party 🙂
He is not anti business. Only anti business that does not support his campaign. After that he is an economic idiot or just doesn’t care. I have been saying this all along and you believe it now why? Because some Left pundit finally said it?
In that he is a standard politician. I don’t think he is an idiot or uncaring.
Actually, I have been consistently critical of the bailout process. While I do agree that the state needed to take action, the actions taken have been sub-optimal, wasteful, and essentially a huge money dump from us to the relevant corporations.
Obama is no wild socialist-Muslim-Communist-whatever. He is pretty much a Mark I standard politician now, only with a high charisma.
He is no capitalist. What does that make him? Mark I politician is not an option unless picking from the left. If he isn’t a socialist then what is he. Making up definitions isn’t working here.
Standard politicians do not purchase the controlling share of a major automotive company. Sounds non-capitalist to me. Then that company ony gives political money to one party. Sounds closer to socialism or fascism. Take your pick or stay in denial.
It will sacre you when you start actually looking and find out how much money is lost and un-accounted for. $4+ billion of the $5 + billion that went to Goldman Sachs went to overseas banks. Padding personal accounts anyone? How rich are these politicians really?
Sorry, I need to correct myself. I think it was through AIG and it was much more than I recently thought.
http://www.uncoverage.net/2010/08/report-billions-of-tarp-bailout-went-to-foreign-banks/
We need a little more accountability because my gut is telling me that some of this money padded peoples’ accounts and not the actual banks themselves.
You don’t your gut to tell you that-just look at the data about executive compensation.
No, I was told not to worry about what other people have but just worry about myself. How much do professors make? Hmmm? I don’t remember a professor hiring me for anything. Questioning is all fine and dandy until it comes your way. I don’t care what anyone makes as long as I feel as I am being compensated fairly. I still feel as though the political class is our aristocracy. They don’t seem to do much except take and give nothing in return. I can choose not to buy a corporations product but I cannot choose to bypass or politicians product. Seems like I am forced to buy sliced up air cut this way and that.