The message here is clear: loan money to financial entities with friends in Washington and no matter how risky the loan, taxpayers will bail you out if it goes bad. However, loan money to a unionized manufacturer, even if prudently secured by real assets, and you have as much chance of getting your money back as finding Jimmy Hoffa's body.Pitchfork, anyone?
As if this wasn't bad enough, testimony on Thursday from former Bank of America CEO Ken Lewis revealed a concerted effort on the part of Fed Chairman Ben Bernanke and former Treasury Secretary Henry Paulson to pressure Lewis into hiding relevant financial information regarding Merrill Lynch losses from Bank off America shareholders. Recently released e-mails make it clear that the government threatened to remove corporate leaders if they failed to go through with the merger and keep quiet about the losses.
Again, the justification for the interference seemed to be the "greater economic good" the merger would serve. The right of B of A shareholders to be informed that their company was about to buy a financial black hole was clearly considered to be an acceptable sacrifice.
Sunday, June 14, 2009
Unequal protection under "law"
It's becoming ever-more obvious we are a nation ruled by men, not by laws. The social contract is breaking down, as 'laws' are perverted to serve whatever purposes those in power choose to use them for. Landowner won't sell? Fine: get your political friends to invoke eminent domain. Worried about risky loans you made? Get the taxpayer to bail you out. It would seem the most profitable investments these days are in politicians...
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