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GreenScam: How Tax Favored Foundations Get Taxpayers to Bend Over
They abandoned previous public announcements re homeowner loan modifications, buying up toxic mortgages from banks and auctioning them to private investors.
They bailed out banks and bank creditors with like AIG, using Taxpayer Cash to buy non-voting Senior Preferred stocks and warrants from toxic big banks to preserve the financial system.
Was a dysfunctional financial system really worth saving, and standing by not an option as claimed by the Financial Troika, or was Schumpeter’s creative destruction to grow the economy with more prudent financial institutions the correct call?
http://en.wikipedia.org/wiki/Joseph_Schumpeter
What about the long-term consequences of subsidizing failure?
What about the businesses and citizens who paid their bills on time, did not gamble away the rent, and worked hard for their money?
What about future generations?
TARP essentially nationalized big corporations, gave Swine Flu to more than 8500 banks and businesses with government moral hazard and saddled taxpayers with the unlimited unreasonable burden of politicized financial guarantees.
Will Taxpayers get their money back as claimed?
TARP may eventually prove the Fed Bankrupt and the Treasury insolvent, particularly if Stimulus II adds on even more debts that cannot be serviced, let alone repaid.
Reportedly, the MBA President and Goldman Treasury Secretary changed their TARP priorities after meeting with UK Prime Minister Gordon Brown.
The PM advocated the Swedish Bank Bailout model used in Britain, which basically nationalized financial organizations too big to fail or succeed, what we call dinosaurs.
The result was Big Government temporarily shored up Big Bank balance sheets with Preferred Stock at taxpayer expense, rather than buying up toxic assets and auctioning them to private speculators as originally planned and publicized.
May 26th, 2010 at 2:40 pm
A theory like this one seems impossible to fathom. Is the government doing whatever is necessary to maintain calm among the population after these speculations aboutthe end of the world? If this theory is accurate, we wonder who the people who are on the list will be.