“Should American bankers be let off the hook because they self-declare, before an investigational panel, that the failure of their newly invented risk swaps and other highly leveraged investment schemes was simply due to “mistakes”?
From The Business Insider
The nausea we feel with respect to Citigroup
Perhaps it’s true that civilization would have ended if we had just allowed Sandy Weill’s colossal junk pile to finish blowing itself up. But at this point that seems a more attractive alternative.
In case you missed it, here’s the latest outrage:
As of yesterday afternoon, the United States taxpayer owned 34% of Citigroup’s common stock, in addition to a massive amout of TARP preferred stock. The US taxpayer did not own 34% of Citigroup’s common stock by choice. We owned it because our government decided to bail Citigroup out not once, not twice, but three times.
In the last of these bailouts, the Treasury Secretary Tim Geithner gave Citigroup the latest in a long series of gifts, by converting some of our preferred stock to Citigroup common stock at $3.25 a share. This conversion price was too high and resulted in an invisible bailout/gift that most people missed. It also left taxpayers with the dubious privilege of holding Citigroup common stock.
Sadly that was not the end of the story today Citi announced a $7.8 Billion 4th quarter loss. I’m not very good at math maybe you can figure out what 34% of $7.8 Billion amounts to as a loss for the middle class taxpayers. Yes I said the Middle Class taxpayers!
These statistics usually get lost in the noise of protecting the wealthy class with their generous tax breaks. But when we examine the data even further we realize that even those with solid incomes of $100,000 to $200,000 per year are feeling the tax burden pinch with changes in the alternative minimum tax (AMT). What we can gather from the data is the small elite, the top 1 percent have managed to setup a structure that manages to use the rest of the population to finance their adventure. First, let us breakdown the numbers you can read about them HERE in full the article completely wipes out any notion that the rich are paying all the taxes with Math and Math doesn’t lie.
Inquiring minds want to know is the American Economy being tanked by mistake or by Intent?
“Should American bankers be let off the hook because they self-declare, before an investigational panel, that the failure of their newly invented risk swaps and other highly leveraged investment schemes was simply due to “mistakes”? Not malfeasance – just every-day mistakes? Bankers just fell asleep at the helm at a critical juncture in American history. Is that what we are being led to believe?”
Or is there more to the story then meets the eye?
Lenses into the future: a planned default?
“Americans cannot see the economy as the elites do. The elites have lenses into the future. They have access to information that foretells the future of our economy. They can see a better picture of when mounting debt will rise beyond the ability to repay.
They certainly can see pension funds, private and public, are under-funded and there is no way, with Baby Boomers now entering their retirement years, these obligations can be met. Medicare expenses are totally out of control with enrollees able to rack up bills in the tens of thousands of dollars beyond what they ever paid into the system.”
They couldn’t possibly be thinking of Bending you over again could they?
“There is a rumor floating around that Obama will seize Americans’ retirement funds, like Argentina and some other countries have done.
As one commenter said this is the means that the underfunded defined benefit plans in the country will be fixed. Mandate that all retirement funds be placed into these “R Bonds”. That way the Feds can control the retirement system not the Cities, Counties and States, or even the private companies. All retirement plans will be rolled into this new Federal Retirement. They will then coordinate this with Social Security payments so that if you are receiving retirement from the Fed plan then your total monthly payment from Social Security will be reduced by as much as 2/3rds. This is what happens with teachers in California already. The plan model is in place already. If you do not believe that this is going to happen you must be living on some other planet. The underfunded government retirement plans need to have this done so that they can survive and so Obama can continue to spend.