Banks 1, America 0

[Orwellian_Ghost]

Banks 1, America 0
by Dean Baker

Last Friday's job report showed that most of the US is experiencing enormous economic pain, even if America's economy is now in a recovery. Overall unemployment rose to 9.8%, with the unemployment rate for men hitting a new post-depression high. The economy shed another 260,000 jobs in September and the previous figure for jobs lost in the recession was revised up by more than 800,000. The average workweek continues to shorten. With real wages falling, this ensures that most workers will be taking home shrinking wages.

For the vast majority of people in the country, who derive the vast majority of their income from working, the economy looks really awful. But the economy is not looking bad for everyone.

As we are constantly reminded, the financial crisis is behind us and the banks are back in their feet. In fact, they are more than just back on their feet. In many ways they are doing better than ever. The most recent data from the commerce department shows that the financial industry profits now account for more than 31.5% of all corporate profits. This is a higher share than at any point during the housing bubble years.

Of course, it is not that hard to make profits when you get to borrow money from the Fed at almost no interest and then lend it back to the government at 3.5% interest. Suppose the state of California was given the privilege of not only borrowing $1 trillion from the Fed at near zero interest but also using the money to buy Treasury bonds paying 3.5% interest. The $35bn in annual interest rate subsidies would take care of California's huge budget deficit pretty quickly.

...

http://www.guardian.co.uk/commentisfree/cifamerica/2009/oct/05/us-economy-recession-unemployment

[MannyGoldstein]

1. Banks $13,000,000,000,000, American People: Meh

The taxpayer now has more than $13 trillion at risk, guaranteeing toxic bank assets.

[Octafish]

14. C'mon MannyGoldstein! You know a big chunk of that money's being put to good use...

...in Switzerland. The Wall Street bonus portion, f'r instance, was more than loaned to Detroit's GM and Chrysler.

[inna]

2. KR+3. This needs to get to the Greatest Page, more people should read this.

:kick:


WHAT_AN_OUTRAGE.


wake up, people.

[Orwellian_Ghost]

4. Sooner or later

we are going to have to take it to the streets. Noone in DC is listening.

[Name removed]

9. Deleted message

Message removed by moderator. Click here to review the message board rules.

[inna]

10. and it's cruelly ironic that they are waiting for us. Seriously, they are ready and

waiting. Think Pittsburgh, nighmarish crowd control devices, etc.

These guys are fully prepared for "civil unrest", and they've been ready for a while.

See this, http://www.salon.com/opinion/greenwald/2008/09/24/army/print.html for a "fun" read, for example.


:banghead:

[redqueen]

3. Does Andrea Mitchell have anything to say about this?

You know, while she's talking about what a mess we're in and all.

:sarcasm:

K&R

[walldude]

5. Read Matt Tiabbi's new piece in Rolling Stone...

He fills in all the details on how Wall Street is fucking us over, and when we ran out of money for them to steal they went to work on each other ie: Bear Sterns and Lehman..

It's not online yet but the new issue is on newsstands. It's got U2 on the cover and I have to tell you, be prepared to be furious when you finish reading.

[AllentownJake]

6. HOPE.....CHANGE...

Oh fuck it is the same old shit with a nicer looking younger guy selling it.

[Joe Fields]

7. THAT'S 260,000 PEOPLE WHO HAVE LOST THEIR MEANS OF SURVIVAL.

Yeah, I posted it in caps, because these are REAL LIVE HUMAN BEINGS, WITH MORTGAGES, CAR PAYMENTS, MEDICAL BILLS, UTILITY PAYMENTS, AND THE FUCKING BILLS DON'T STOP COMING!!!!!!

AND THAT WAS JUST FOR LAST MONTH.

It's a human catastrophe, and not enough is being done to reverse the trend, but everything is A-OK, because Wall Street is bouncing back.

[inna]

8. this is a nearly UNPRECEDENTED *assault* on the American people,

MASSIVE transfer of wealth to the financial elites, Shock Doctrine in action.


How we put up with this outrage is simply beyond me, this makes me want to bang my head on the wall.

:banghead:

[TBF]

11. Business as usual.

n/t & rec

[Orwellian_Ghost]

12. Yep

[blindpig]

13. People keep sayin', " It's got to get better."

When they stop sayin' that, look out.