Friday, February 06, 2009 8:06 AM
Swede
Financial Perpetrators
The Treasurey overpaid $78 Billion in bailout when it bailed out big banks as part of the Wall Street rescue program. Congress did not apply sufficient internal controls to police and protect taxpayers investment in these institutions. The price we're paying and what we think we are getting is a huge disparity.
Out of touch Politicians, Timid Regulators, and Greedy bosses at the likes of Citigroup, AIG, Merrill Lynch and Lehman Brothers gave us the mortgage-backed bubble that now cost hundreds of billions in government bailouts and hundreds of thousands of Jobs are ripe to continue their abuse.
These seven-figure-salary perpetrators who cooked up a global-sized toxic soup of subprime mortgages, collateralized debt obligations and credit default swaps that have poisoned the financial system have passed out executive bonuses just before they pulled their own golden parachutes makes people extremely angry. Man of those same pertetrators are now playing golf at Pebble Beach rather than at Club Fed Prisons.
These companies where deemed to "BIG" to allow to fail! The public has a right to be outraged over reports of bonuses paid to the brass at failing Merrill Lynch, which was taken over by ailing Bank of America, which also received billions from the government. The big shots at AIG spent a half-million bucks at a spa shortly after the government shored up the ailing insurer with $85 billion capital infusion.
These businesses should have been allowed to fail. Why should taxpayers have to pay the fat cat bosses and the shareholders for incompetent management? The only persons hurt by this is the taxpayer.
When a person buys shares in a company, part of the whole deal is taking on the risk that the company may not do well and many times may not survive. That's what buying and owning shares in companies is all about.
Our country does not need four coffee shops all on the same corner especially when they get together and provide no competition by price fixing the cost of a cup of coffee at $4.00.
None of the shops make money. If three go out of business, one still will remain providing coffee to the consumer, with a much better chance of being on that corner providing coffee for years to come.
The same goes for Financial Institutions, we do not need a bunch of companies that don't compete on providing a less costly service, but fixing prices artifically high. Our gas stations are a simple example of what no price competition creates. High Gas Prices for Everyone!!
We have a bunch of retail stores that sell the same junk, from China, at the same price and want consumers to believe that the competition between them keeps prices in line. Bull!!!
If we allowed these "TO BIG TO FAIL" companys to actually fail, the customers would not lose their services, they would transfer their needs to the remaining more stable companies. Not only would it save billions of taxpayer dollars, it would help shore up the good companies who did not lie, cheat and steal.