Republican Welfare to the Rescue!
Bear Stearns, the nation’s fifth-largest investment bank, made its fortune dealing in repackaged subprime mortgages — a strategy that backfired amid the worst housing slump in a quarter century. The bank has racked up $2.75 billion in write-downs since last year. Yesterday night, the Bank realized that it might not have enough money to continue operations.
Time for the market system to work its magic, right? Let the market weed out the losers and allow the winners to prosper! Wellll, not so fast. Rather than let the market have its way with Bear, the Federal Reserve, which our tax dollars fund, is tapping a Depression-era law to insure an unspecified amount of loans to allow Bear to continue operations. Just so we’re clear- our government is taking OUR money, and handing it over to bail out the greed of the nations fifth largest investment bank.
It’s the Republican Welfare system at its finest-- if people can’t afford heating oil or a decent education, that’s their problem- but some millionares on Wall Street might have their gravy train cut off if we don’t act now, shit, write ’em a check!!
And just as a little post script, Bear Sterns CEO Jim cayne made $33.9 million in 2006, back when the subprime loans he was buying still looked like a good idea. I wonder how much of that is going towards the bailout.
So whether you support a welfare system or not, realize that with either party, someone’s going to get money handed to them. Since Bernake was appointed chair of the Federal Reserve, the republicans have clearly shown who they favor giving the money to. If you disagree, now might be a good time to think about how to do something about it.
Time for the market system to work its magic, right? Let the market weed out the losers and allow the winners to prosper! Wellll, not so fast. Rather than let the market have its way with Bear, the Federal Reserve, which our tax dollars fund, is tapping a Depression-era law to insure an unspecified amount of loans to allow Bear to continue operations. Just so we’re clear- our government is taking OUR money, and handing it over to bail out the greed of the nations fifth largest investment bank.
It’s the Republican Welfare system at its finest-- if people can’t afford heating oil or a decent education, that’s their problem- but some millionares on Wall Street might have their gravy train cut off if we don’t act now, shit, write ’em a check!!
And just as a little post script, Bear Sterns CEO Jim cayne made $33.9 million in 2006, back when the subprime loans he was buying still looked like a good idea. I wonder how much of that is going towards the bailout.
So whether you support a welfare system or not, realize that with either party, someone’s going to get money handed to them. Since Bernake was appointed chair of the Federal Reserve, the republicans have clearly shown who they favor giving the money to. If you disagree, now might be a good time to think about how to do something about it.
posted by Matt at 9:02 AM
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