Yes, it will be another windfall for them -- if they manage to get bailed out again
by the US government, using the magic money created out of thin air by the US
Federal Reserve.
But how many
times can the Fed bail out the banksters (who are getting ever more obscenely rich
off this scam), as they continue to collect trillions in magic money from the
Fed, . . before this racket cripples our economic system and flattens most of
us financially? In other words, for how
much longer are the majority of Americans going to remain deaf, dumb and blind as
regards this larcenous scheme that is slowly driving most of them out of the
middle class and into poverty? And as
America becomes ever more debilitated as a result of this parasitical "crippling'
and decimation of its middle class, at what point are the world's investors
going to refuse to fund this larcenous scam any longer, by refusing to
purchase the US Treasury bonds whose continuing sales make it all possible?
As Richard Escow
recently pointed out at the
Huffington Post, we've spent hundreds of billions of dollars -- likely
trillions -- to rescue big banks. But
instead of dialing back on the risky behavior that shattered the economy in
2008, they are instead doubling down on it. And when that bill comes due, we won't just be
asked to pay it again. We'll be asked to
take the blame for it again, too.
So who are
the real deadbeats in this country? Banks
acted recklessly in the years leading up to the financial crisis -- and ran up
a bill that the rest of us have been paying since 2008. And guess what? They're doing it again.
Take student
loans. Americans now owe more
than a trillion dollars on their student loans, a figure that's growing by
$50 to $60 billion every month! And now
we've learned that as many as 27% of these loans are
delinquent, meaning they're more than thirty days past due. That amounts to roughly $270 billion in
troubled loans -- most of which have been guaranteed by the US taxpayer. So who do you think is ultimately going to
pay for this? Three guesses.
We've
already rescued American banks with hundreds of billions in public money,
saving them from the consequences of their incompetent underwriting of mortgage loans. Now we're about to do the same thing with student loans, which were part and
parcel of a risk-free money-making scheme gifted to those same banks by our
bought-and-paid-for Congress, which the banks and Wall Street essentially own.
Politicians
"privatized" Sallie Mae, the government-sponsored enterprise (GSE) created to help students borrow for their
education. Sallie's greed-crazed
executives promptly went on a spending spree, using their lavish government
backing to pay themselves inflated salaries and buy corporate jets so they
could travel in luxury. Yet, without
irony, their backers and shills shrieked "socialism!" when wiser
heads wanted to stop private-sector skimming at the expense of our nation's
students. (See " Sallie Mae's jets .")
And now that
a shortage of decently paid jobs for most new grads are forcing most of these student
loans to go bad, who do you think will pick up the tab? Well, it won't be those high-flying executives. And Wall Street certainly won't be held
accountable for the fact that today's graduates face the worst employment
situation in recent memory (even though that's a direct result of bank
malfeasance). Instead the public will
pay this new cost of the banks' behavior, just as it has paid for so many
others.
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