Wall Street is awarding itself $150 billion in bonus money…..and it comes from us!
That’s $500 for every man, women and child in the country — $2,000 for a family of four. (Maybe we should try deducting it from our income taxes as a charitable donation.)
Had we not bailed out the financial sector, there would be no bonus pool this year. Zip, zero, ziltch.
Wall Street, and no one else, crashed the economy through its fantasy finance extravaganza. Wall Street went begging for subprime debt in order to create and market their new financial securities, the most profitable activity in their history. As a result of their securitization casino, which leveraged bet upon bet, the housing market turned into a bubble and finally burst. Wall Street had miscalculated, big time.
We gave the Wall Street banks gigantic loans and enormous guarantees on their toxic assets. We gave them TARP. It all totaled to more than $12 trillion, with most of it still in play, even after the TARP repayments. (See Nomi Prins’s excellent accounting..)
Wall Street was saved from bankruptcy, including Goldman Sachs which now cavalierly insists that it didn’t really need the bailout money (yet it took $12.9 billion of taxpayer support via AIG, and tossed it into its bonus pool.) Wall Streeters actually think they’ve earned the $150 billion in bonuses through their own cleverness. Think again. It’s nothing more than taxpayer welfare.
Les Leopold is the author of The Looting of America: How Wall Street’s Game of Fantasy Finance destroyed our Jobs, Pensions and Prosperity, and What We Can Do About It Chelsea Green Publishing, June 2009.
Because I Said So: Henry Paulson justifies the Wall Street bailouts by explaining that letting Goldman Sachs AIG fail would have caused “complete collapse of our financial system, and unemployment easily could have risen to the 25% level.” Instead of just 17.3% and rising. His proof – he thought so. He believed. Has anybody ever challenged these hysterical fears, or do the peasantry just gather up $2,000 per family, send it to the Banksters and say thanks? (Source)
lightningbolt: We aren’t donating anything. The American people were overwhelmingly against the bailout. The money is being STOLEN!!! Our government is aiding these criminals in this theft! Both Bush and Obama are complicit and guilty in this crime.
So Much for the Sovereignty of Our Nation: Sorry, but Joe Taxpayer is not responsible for the inability of AIG to write insurance that it could not cover losses on. Fact is, the United States of America had no one in power to stop the Fed. The Fed did what it wanted to do. No one was a there to protect the taxpayer. America abdicated sovereignty. The country was actually too weak to fight the banks.