Was the Bailout Itself a Scam?

[Orwellian_Ghost]

Americans are angry that AIG executives are paying themselves millions of dollars in bonuses after having cost the taxpayers an exorbitant sum. Senator Charles Grassley put a proper face on the anger when he suggested that the AIG executives “follow the Japanese example and resign or go commit suicide.”

Yet, Obama’s White House economist, Larry Summers, on whose watch as Treasury Secretary in the Clinton administration financial deregulation got out of control, invoked the “sanctity of contracts” in defense of the AIG bonuses.

But the Obama administration does not regard other contracts as sacred. Specifically: labor unions had to agree to give-backs in order for the auto companies to obtain federal help; CNN reports that “Veterans Affairs Secretary Eric Shinseki confirmed Tuesday that the Obama administration is considering a controversial plan to make veterans pay for treatment of service-related injuries with private insurance” < click here >; the Washington Post reports that the Obama team has set its sights on downsizing Social Security and Medicare.

<snip>

The US government breaks its contracts with US citizens on a daily basis, but AIG’s bonus contracts are sacrosanct. The Social Security contract was broken when the government decided to tax 85% of the benefits. It was broken again when the Clinton administration rigged the inflation measure in order to beat retirees out of their cost-of-living adjustments. To have any real Medicare coverage, a person has to give up part of his Social Security check to pay Medicare Part B premium and then take out a private supplemental policy. The true cost of Medicare to beneficiaries is about $6,000 annually in premiums, plus deductibles and the Medicare tax if the person is still earning.

<snip>

Eliot Spitzer, the former New York Governor who was set-up in a sex scandal to prevent him investigating Wall Street’s financial gangsterism, pointed out on March 17 that the real scandal is the billions of taxpayer dollars paid to the counter-parties of AIG’s financial deals. These payments, Spitzer writes, < http://www.slate.com/id/2213942/ > are “a way to hide an enormous second round of cash to the same group that had received TARP money already.”

<snip>

http://www.opednews.com/articles/Was-the-Bailout-Itself-a-S-by-Paul-Craig-Roberts-090319-674.html

[daninthemoon]

1. if there is one group that the last admin liked more than oil men,

it was wall street bankers. they took care of their oil and energy friends first, then at the last moment, they asked for and were handed this bailout blank check to the wall street bankers. remember where the bush fortune came from. they were connecticut living wall street bankers. yes, it was a scam, or rather, it was emptying the last few coins from the back of the vault at the end of the robbery. it's very simple to me: uncle sam had a fistful of money in his right hand 8 years ago. that was the hand with our money. now that hand is empty and the other is spilling over with cash. that is the hand of the super rich bank and oil owners. not the 401k owners who thought they had a piece of the fatcat's game, but the real ruling class of america. the people who don't uinderstand that they are not simply entitled to all the money that can be printed.

[SmileyRose]

2. Yes

and from the looks of things, Obama is in on it. I wish I was wrong. If he wasn't he'd probably have been dead already. The predator class plays for keeps.

My only hope is that when they are all done enriching the rich people they'll remember us peons and throw us a few scraps. It's too soon to know.

[dkofos]

3. YES

[seemslikeadream]

4. The real terrorists

[notesdev]

5. Gee, what tipped you off?

Was it Hank Paulson's 3-page offer to assume control of an economic dictatorship? The threat of imminent martial law? The contrived panic atmosphere? The endless parade of crooks demanding "we must act quickly"? The blatant pattern of baldfaced lies from everyone involved in the mess?

[rhett o rick]

28. Maybe the timing. Just prior to bush giving up control. nm

[Octafish]

6. That was the first thought to enter my mind.

It's their M.O.

Know your BFEE: Goldmine Sacked or The Best Way to Rob a Bank Is to Own One

Know your BFEE: Phil Gramm, the Meyer Lansky of the War Party, Set-Up the Biggest Bank Heist Ever.

My wife really hates it when I say four little words in a certain order. I'm cursed with a long memory as an amateur historian:

Know your BFEE: Scions of the Military Industrial Complex

Know your BFEE: Spawn of Wall Street and the Third Reich

Know your BFEE: They Looted Your Nation’s S&Ls for Power and Profit

Thank you for a most important OP, Orwellian_Ghost.

[formercia]

10. The Savings and Loan Scandal

http://en.wikipedia.org/wiki/Savings_and_loan_crisis

Silverado Savings and Loan

Silverado Savings and Loan collapsed in 1988, costing taxpayers $1.3 billion. Neil Bush, son of then Vice President of the United States George H. W. Bush, was Director of Silverado at the time. Neil Bush was accused of giving himself a loan from Silverado, but he denied all wrongdoing.<2>

The US Office of Thrift Supervision investigated Silverado's failure and determined that Neil Bush had engaged in numerous "breaches of his fiduciary duties involving multiple conflicts of interest." Although Bush was not indicted on criminal charges, a civil action was brought against him and the other Silverado directors by the Federal Deposit Insurance Corporation; it was eventually settled out of court, with Bush paying $50,000 as part of the settlement, the Washington Post reported.<12>

As a director of a failing thrift, Bush voted to approve $100 million in what were ultimately bad loans to two of his business partners. And in voting for the loans, he failed to inform fellow board members at Silverado Savings & Loan that the loan applicants were his business partners.

Neil Bush paid a $50,000 fine and was banned from banking activities for his role in taking down Silverado, which cost taxpayers $1.3 billion. A Resolution Trust Corporation Suit against Bush and other officers of Silverado was settled in 1991 for $26.5 million.

[acmavm]

7. Of course it was. It was the bush** admins last ditch effort to give away

every last dime to his 'constituency' while trying to drum up some 'legacy' from the plebs.

He was playing the public and paying his buddies. And it succeeded because of Obama's support. I don't know why he supported it. I just know damn good and well he did.

I told my reps not to vote for it. Of course Hagel didn't. Nelson tried to play Kingmaker and was put in his place.

And when people whine 'he's only had 4 months' tell him he fucked up before he even started.

NOTE: I do not say Obama has done NOTHING GOOD. Because he has. But this, this far outweighs anything he's done so far.

And he has taken sides against us in telecom spying and prosecutions for the lies and treasons that led up to Shock and Awe.

[blindpig]

8. Small change for us

I guess that's what he really meant.

[formercia]

9. Absolutely

Bush Gang even had laws passed to guarantee they got their money, no matter what.

[burythehatchet]

11. Not a scam. Extortion.

The telecom immunity was bad, but when Obama jumped right on in support of the extortion, we all know something was up. Now we are beginning to understand what that was.

[SammyWinstonJack]

12. I don't know but.....THANK GOD IT PASSED!

:evilgrin:

[Ichingcarpenter]

13. Rome was sacked by the Vandals but this time

The inhabitants of Rome didn't realized that it was being held for Ransom,
Raped and plundered all at the same time.

The populous were too busy watching the bread and circuses
provided by the barbarians at the gate as they came in through a back door.

This was the first sacking of Rome make no mistake about that.

[bvar22]

14. All you need to know to make an informed judgement.

Compare/Contrast:

1) how the auto workers were treated

to

2) how the Wall Street Execs were treated

[TBF]

15. In "bad" neighborhoods they call it "looting". When done by politicians

on either side of the aisle it is known as "bail-out".

[kentuck]

16. A very important question.

We cannot help but realize that it was started under the George W Bush Administration. They are known for scams of massive proportion. It is a fair question. The day that George W Bush and Henry Paulson stood before the cameras and told us that the entire banking system was near total collapse changed the entire world.

[ljm2002]

17. Yes.

Unfortunately, it continues on, aided and abetted by an administration that some of us hoped would bring change.

They are desperately trying to preserve the current world order, in which the United States reigns pre-eminent, with our dollars as the international reserve currency -- based on our position as the world's only superpower, and on our transparent financial systems, and our strong social and political system that is based on the rule of law. If you found yourself laughing out loud, or shaking your head, during the second part of that statement, then you will realize that it is too late already. We've already lost the unassailable position that we held for the last half of the 20th century. So it goes in this world -- sic transit gloria mundi.

[kentuck]

18. They are ready for change.

Just not the radical change that is needed to survive this economic disaster.

[libodem]

19. Anything started under Bushitler

should be sniffed to see if it smells like tax dollars be siphoned off for rich corporations. We been used and abused by that man and we still don't know how badly, yet. When Poppy was president and BuNiel profited from dooming the savings and loans they were infected with teh greed, then, we should have been alerted to Bush capabilites. And then he fucked Florida. Or was that another one? And they all profit off of pre-packaged 'No Child Left Behind' study for the tests lesson plans, they designed and sell. Infected Education with his greed virus. The scope of this absolute ringing of the wealth out of America, might never be exposed.

[960]

20. Yes. Yes. Yes.

[varelse]

21. Say it isn't so!

:cry:

[chill_wind]

22. Follow the money, I always say.

Not just Bush's, but Wall Street and Dems, who got that blank taxpayer check job done big time. Wall Street giant GS, for example has been giving way more to Dems than Pubs for 20 years, now. AIG has given twice as much $$ to Democrats since 2006. People don't think that doesn't come with an eventual price tag?

Lots of money to follow:

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=114&topic_id=61119&mesg_id=61119

If Bush Paulson robbed America blind in the biggest heist of all time, smooth key Dems skillfully drove the getaway car.

As for Paulson--


"Senators confirmed him on a unanimous voice vote in the Senate Finance Committee, and again by voice vote on the Senate floor, meaning not one U.S. Senator was even willing to call for a recorded vote -- true proof of Big Money's hostile takeover of our government."

- David Sirota

The Paulson Payoff at the Bush Treasury Department
July 4, 2006 | 07:14 PM (EST)
http://www.huffingtonpost.com/david-sirota/the-paulson-payoff-at-the_b_24379.html



Schumer: "Simply no equal to Hank!"

"In the world of finance and international markets there's simply no equal to Hank," said Sen. Charles Schumer, D-N.Y., who praised Paulson's experience in international finance and relationships with Chinese business leaders and government officials.

"We need someone who is seasoned. We need someone who knows markets," Schumer said.
Bush praised the Senate for its quick action.

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=google&guid={5801D6FE-295A-4326-894B-ACB0454619C5}&keyword=

[scarletwoman]

23. Duh. Does the Pope shit in Africa? k&r (nt)

[sendero]

24. Of course they were..

.. and all but a vocal handful here got that from the get go.

The end result of this mess is going to be the same. The taxpayers are going to pay for the gambles of the bankers.

The difference is, because of the way we are doing it the final bill is going to be much higher than it needs to be, and the greedy morons who perpetrated this mess are getting off scot free.

And that is BULLSHIT.

[scarletwoman]

25. kick (nt)

[Gin]

26. Yes...S&L debacle was practice.....this was bush's last chance to loot the

treasury...and he succeeded.

[rhett o rick]

29. Yes, that explains the timing of the crash. Just prior to bush leaving office. One last chance for

the bush crime family to loot. But keep your eyes on Jeb. He will be running a shadow government.

[Orwellian_Ghost]

27. Kick

[McCamy Taylor]

30. Yes. It has been used for a political slush fund. Bonuses are so employees can donate

to politicians who favor the banks over us.