Comments on: Fed Continues Wall Street Welfare

By: Executives Again Treating Corporate Treasuries as Their Money at Curious Cat Investing and Economics Blog

Sun, 03 Apr 2011 14:53:37 +0000

[…] we have the senior executives at the too big to fail financial institutions that did fail and were bailed out by taxpayers. We all know the economic calamity caused by these executives, throwing millions of people out of […]

By: Financial Transactions Tax to Pay Off Wall Street Welfare Debt at Curious Cat Investing and Economics Blog

Wed, 11 Nov 2009 16:14:41 +0000

[…] the treasury to those that paid the politicians? More cynical to think the politicians that created huge Wall Street Welfare payments won’t actually do anything except talk about how they think it is bad that those they paid […]

By: The Best Way to Rob a Bank is as An Executive at One at Curious Cat Investing and Economics Blog

Wed, 08 Apr 2009 13:38:34 +0000

The looters are not owners, they are executives that loot from owners, taxpayers, customers… And those looters pay politicians a great deal of money to help them…

By: Credit Crisis Continues at Curious Cat Economics Blog

Credit Crisis Continues at Curious Cat Economics Blog — Mon, 14 Apr 2008 13:29:21 +0000

The world’s biggest banks have suffered losses and write-downs totalling almost $250 billion since the beginning of 2007…

By: Raag Vamdatt

Raag Vamdatt — Thu, 03 Apr 2008 04:20:20 +0000

I agree that people have eluded regulation for personal gain, and should not be bailed out. But when there is a risk to the entire system – globally, not just in US – steps need to be taken to mitigate any crisis.

But we should note that these very same people, who were running away from regulation, would now be regulated tightly. Now that’s a positive side-effect of a bailout!

By: Antony

Antony — Wed, 19 Mar 2008 08:18:42 +0000

I liked your first two paragraphs then got slightly lost.
I think two things need to be separated in what is a taxpayer bail-out for a bank.
Firstly, loans (subprime) were made to people who really might default. And many ordinary, untrained with no banking expertise people thought that the default would occur exactly at the time when those adjustable rate mortgages converted to a different higher rate. It does not seem to have entered the heads of the CEOs (paid literally 1000 times that of ordinary people) of those lending organisation that they were creating a problem for their companies. A condition of bailing out Bear Stearns has to be that every boardmember looses their job without special compensation. Frankly – they were idiots! As this hasn’t even been mentioned it suggests that the Federal Reserve may reek of corruption. My suggestion is not vindictive it is merely good financial governace.
Secondly, mortgages were packaged into bundles. Some of those bundles were sold as only containing prime loans. It has been know for some time that some of those “prime” bundles had had subprime loans slipped in. This is straight criminal fraud. No if and buts. Until there are prosecutions, or at least attempted prosecutions, the Wall Street Welfare should be seen not merely as an act of charity to those who command million dollar bonuses, but also as hush money to cover up the true corruption at the top. Who pays? The usual – you and I.