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By Choosing The Big Banks Over The Little Guy, The Government Is Dooming BOTH

Posted By admin On August 21, 2011 @ 6:07 am In Money Watch | Comments Disabled

Washington’s Blog [1]
Aug 21, 2011

Should Government Help the Little Guy or the Big Banks?

If the government is going to give anyone money, giving it to the little guy is arguably more fair than giving money to Wall Street fatcats.

Moreover, as Steve Keen demonstrated mathematically [2] in 2009, giving money to the debtors is much better for stimulating the economy than giving it to thecreditors.

In addition, because runaway inequality causes depressions [3], helping out the little guy helps to stabilize the economy [4].

Government Has Picked Winners and Losers

The big banks were all insolvent during the 1980s [5].

And they all became insolvent again in 2008. See this [6] and this [7].

The bailouts were certainly rammed down our throats under false pretenses [8].

But here’s the more important point. Paulson and Bernanke falsely stated [9] that the big banks receiving Tarp money were healthy, when they were not. They wereinsolvent.

  • A d v e r t i s e m e n t

Tim Geithner falsely stated [10] that the banks passed some time of an objective stress test but they did not. They were insolvent.

Both the creditors and the debtors were mortally wounded by the 2008 financial crisis. The big banks wouldn’t have survived without trillions in handouts, guarantees, loans, idiot-proof profits [11] courtesy of the government.

The little guy hasn’t been helped since 2008. He has been left to suffer with his life-threatening wounds. See this [12]this [13] and this [14].

So the government chose sides. The creditors were wiped out, just like a lot of Main Street was wiped out. In one sense, the government chose who would live (the giant banks and other bailed out and favored companies) and who would die (the other 99%).

But in fact, the big banks were no longer creditors after the 2008 crash. Specifically, the big banks which held the mortgages and the loans were wiped out.

The government moved the arms and legs of the big banks to pretend they were still alive [15] … and have been doing so ever since. But they were no longer going concerns after they went bust.

The government pumped blood back in these dead banks and turned them into zombies. They will never come back to life in a real sense … they are still zombies, 3 years later [16].

By Choosing Wall Street Over Main Street, the Government Has Doomed the Economy

Many of the world’s leading economists and financial experts say that by choosing creditors over debtors, the government is dooming the economy. See this [17] and this [18].

The big zombie banks can never come back to life, and – by trying to save them – the government is bleeding out the little guy.

By choosing the big banks over the little guy, the government is dooming both.

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URLs in this post:

[1] Washington’s Blog: http://www.washingtonsblog.com/2011/08/government-didnt-temporarily-help-banks.html

[2] demonstrated mathematically: http://www.washingtonsblog.com/2009/09/steve-keen-out-thinks-larry-summers.html

[3] runaway inequality causes depressions: http://www.google.com/url?sa=t&source=web&cd=2&sqi=2&ved=0CCIQFjAB&url=http%3A%2F%2Fgeorgewashington2.blogspot.com%2F2011%2F07%2Feconomy-cannot-recover-as-long-as.html&rct=j&q=site%3Ahttp%3A%2F%2Fgeorgewashington2.blogspot.com%2F%20%20taxes%20inequality%20-&ei=LZpQTv3MN5SosALR66XfBg&usg=AFQjCNGDoG7TRyvEEHBmELdoI0jpTjekRg&sig2=ILdUPrEdr_6Tugraq-7BnA&cad=rja

[4] helps to stabilize the economy: http://www.washingtonsblog.com/2011/07/its-simple-tax-cuts-for-middle-class.html

[5] insolvent during the 1980s: http://www.washingtonsblog.com/2009/10/fed-economist-american-banks-went.html

[6] this: http://www.washingtonsblog.com/2008/10/problem-was-never-liquidity-but.html

[7] this: http://www.washingtonsblog.com/2010/12/economy-cannot-recover-until-big-banks.html

[8] rammed down our throats under false pretenses: http://www.washingtonsblog.com/2010/12/why-isnt-hank-paulson-in-jail.html

[9] falsely stated: http://www.washingtontimes.com/news/2009/oct/05/report-bernanke-paulson-misled-on-bailouts/

[10] falsely stated: http://www.washingtonsblog.com/2009/05/time-calls-geithner-and-con-man-and.html

[11] trillions in handouts, guarantees, loans, idiot-proof profits: http://www.washingtonsblog.com/2011/01/government-says-no-to-helping-states.html

[12] this: http://www.washingtonsblog.com/2011/08/obama-fake-jobs-populist.html

[13] this: http://www.washingtonsblog.com/2011/07/economy-cannot-recover-as-long-as.html

[14] this: http://www.washingtonsblog.com/2011/08/worlds-money-is-draining-away-wheres-it.html

[15] moved the arms and legs of the big banks to pretend they were still alive: http://georgewashington2.blogspot.com/2008/09/feds-weekend-at-bernies.html

[16] still zombies, 3 years later: http://www.guardian.co.uk/business/2011/aug/19/global-markets-take-fright-banks

[17] this: http://www.washingtonsblog.com/2011/08/never-ending-depression-and-scalping-of.html

[18] this: http://www.washingtonsblog.com/2011/07/if-we-dont-break-up-giant-banks-now.html

[19] Virtually ALL of the Big Banks’ Profits Come from Taxpayer Bailouts and Subsidies: http://www.prisonplanet.com/virtually-all-of-the-big-banks%e2%80%99-profits-come-from-taxpayer-bailouts-and-subsidies.html

[20] The Government Lied When It Said It Only Bailed Out Healthy Banks … 12 of the 13 Big Banks Were Going Bust: http://www.prisonplanet.com/the-government-lied-when-it-said-it-only-bailed-out-healthy-banks-%e2%80%a6-12-of-the-13-big-banks-were-going-bust.html

[21] Detroit: Government Chooses Big Banks Over the American People Once Again: http://www.prisonplanet.com/detroit-government-chooses-big-banks-over-the-american-people-once-again.html

[22] Government of the Banks, By the Banks and For the Banks: http://www.prisonplanet.com/government-of-the-banks-by-the-banks-and-for-the-banks.html

[23] As An Encore to Bailing Out the Big Banks, Government to Backstop Derivativees Clearinghouses … In the U.S. and Abroad: http://www.prisonplanet.com/as-an-encore-to-bailing-out-the-big-banks-government-to-backstop-derivativees-clearinghouses-%e2%80%a6-in-the-u-s-and-abroad.html

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