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View Diary: Taibbi, Naked Capitalism Re: Our Bipartisan "Fraudemocracy" (261 comments)

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  •  That's why I have to say it again (3+ / 0-)
    Recommended by:
    gmb, bobswern, elwior


    Every single dollar. Tarp was a small fraction of what they took.


    •  Then here is what we must do... (5+ / 0-)

      You need to support the efforts making their way through Congress to audit the federal reserve.   That's where the serious, serious theft is taking place.  Here's an example:

      the fed lends to banks at about 0.1%

      the banks buy treasury debt paying about 4%

      banks keep the spread.  In other words:  the fed lends to the banks at  0.1%.  Banks lend to the government at 4%.  We pay the interest.  That's the real scam.  So let's get all the TARP money back, and then let's audit the Fed.

      •  I know this. (3+ / 0-)
        Recommended by:
        ilex, elwior, James Kresnik

        I also know that they handed over all their toxic MBS to us, the taxpayer.

        I also know that they took the bailout money and kept it to recapitalize themselves and for their own bonuses and not to lend.

        I also know that their quant trading is a insiders' game.

        I also know that they are nothing but legalized gambling houses not banks in any sense of the word.

        But do most Americans know this?

        •  One teeny correction... (5+ / 0-)

          The toxic MBS are on the Fed's balance sheet.  They are not yet the Treasury's problem.  Fed officials have floated this as a reset; that's outright theft at that point.

          When they sit on the fed's balance sheet, they are assets.  They must be matched to liabilities, which are (a) dollars and (b) excess bank reserves.  This is why excess reserves are so high.  

          The fed preposterously carries these assets at face value.  One of the assets the fed assumed in the wake of bear stearns' collapse was a loan to the red roof inn.

          There is no mechanism in place to get these assets off the fed's balance sheet.  Obviously, they could sell them, but that won't work because there are no buyers at anything near face value.  Or they could hold them to maturity, at which point they would be paid off.  Many of these assets, which are loans, will never be repaid.  So holding to maturity is laughable.

          The point is, we the people need to know immediately what the federal reserve has on its balance sheet.  The argument against this is the same one the fed always uses: it could spark a run on the dollar and collapse the system.

          Just like with TARP, they're holding us hostage.  It's time to call their bluff.

    •  the onion did a very well thought out piece (2+ / 0-)
      Recommended by:
      elwior, James Kresnik

      about the trillions dumped into the national money hole.  It is quite funny in light of the whole tragedy of human suffering because of the monetary fiatsco due to greed and avarice:

      "Let me issue and control a nation's money and I care not who writes the laws." Mayer Amschel Rothschild, 1790

      by FreeTradeIsYourEpitaph on Sun May 02, 2010 at 10:40:13 AM PDT

      [ Parent ]

      •  Ever seen (0+ / 0-)

        what a gold miners quality of life is like in the third world?

        There's your human tragedy.

        •  ever seen (2+ / 0-)
          Recommended by:
          ilex, James Kresnik

          the life of the seamstresses in India that make the clothing that sit on the shelves at walmart, kmart, target, old navy, et al? There is another tragedy working 12 to 20 hours a day, 7 days a week.  Pay less, live better they say. I guess you didn't see the video on Free Speech TV.  I'm sorry I can't find the link, it was done all with hidden camera's so the sweat shop owners wouldn't kick out the reporters.

          Maybe you can't smell the suffering and exploitation in the clothes you buy but I do and hate it. The 'Made in India' or 'Made in China' is the clue.

          "Let me issue and control a nation's money and I care not who writes the laws." Mayer Amschel Rothschild, 1790

          by FreeTradeIsYourEpitaph on Sun May 02, 2010 at 03:06:00 PM PDT

          [ Parent ]

        •  I'm sure it is better (0+ / 0-)

          than the typical resident of East St. Louis, Brownsville or Queensbridge?

          Practically speaking, Augustus Caesar was much better than Julius Caesar. Morally? Not so much. -neroden

          by James Kresnik on Sun May 02, 2010 at 06:24:52 PM PDT

          [ Parent ]

          •  Unlikely. (1+ / 0-)
            Recommended by:

            I caught a BBC reality series on clothing manufacture in India.  The best aren't so terrible, though still poor by U.S. standards.  

            The worst I don't think any of us would want to trade with.  Most homeless in the U.S. at least have access to some modern plumbing (public facilities) and if they get a hot and a cot at a shelter then they are ahead of the worst off sweat shop workers.  Sweatshops are usually piece work and if a worker can't complete enough acceptable pieces in a day to pay for rent and food that is just too bad.

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