Demons & Dialog

Exposing hidden news, history, & the new world order

Bad bank + toxic debts = moral hazard x10

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February 2, 2009, MarketWatch.com
http://www.marketwatch.com/news/story/Bad-bank-toxic-debt-one/

BusinessWeek says Paulson/Bush & Co. wasted $350 billion in TARP money … the Congressional Budget Office and GOP say Obama & Co. will waste another $800 billion on “non-stimulus” programs … Nobel economist [Joseph Stiglitz] calls [the Bad Bank] plan “cash for trash” … Warning, you are entering a bizarre space-time continuum … where Wall Street makes random quantum leaps between metaphoric realities. In the “Lost” television series we’re transported into a parallel reality, a perfect metaphor for today’s global economic meltdown, which is misunderstood and grossly mismanaged. Wall Street crashed … on the “Lost Island … of Manhattan,” the former center of world banking. The collateral damage has been enormous: Freddie Mac, Fannie Mae, Lehman Brothers, Bear Stearns, global trade, Iceland. [Wall Street’s] clueless leaders … are “Lost” with no bottom, no recovery, no strategy in sight. A new president, a secretive Fed and an old Congress are throwing around taxpayer trillions like free candy … on top of Bush’s “$10 Trillion Hangover” …after a clueless Wall Street wrote off trillions in toxic debt, then wasted $350 billion in TARP bailout money, buying $50 million private jets, attending golf outings at exclusive resorts, spending millions on CEO’s office renovations and paying $18 billion in year-end bonuses. Hope masks denial: Even President Obama’s consultant [Warren] Buffett acknowledges that the proposed stimulus plan “might not work.” The stimulus might not work? What if this last bullet is a blank? Should you prepare for the worst-case scenario?

Note: For many revealing reports on the realities of the Wall Street bailout, click here.

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Written by Michael Cooper

February 6, 2009 at 4:33 pm

Posted in Uncategorized

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