Regulators Reload

The current financial reform legislation “Authorizes regulators to impose restrictions on large, troubled financial companies. It creates a process for the government to liquidate failing companies at no cost to taxpayers, which is similar to the F.D.I.C. process for liquidating failed banks.”

Which is not reassuring considering the FDIC liquidated the failed California bank IndyMac by selling it to a hedge fund. A hedge fund is a group of venture capitalists who pool their money to take huge risks at taxpayers expense, while reaping gargantuan returns. And these risk takers are going to own banks and be in control of depositors money?

The billionaire bankers took sub prime lending, that is, lending to lower middle class Americans, and turned it into a multi trillion dollar betting scheme, while undermining our economy by turning debt into profit, all the while betting on the market that it would fail. According to an editorial in the Nation magazine “six banks control assets equivalent to 63 percent of GDP…”. That’s staggering and a direct result of the repeal of the Glass Steagal Act, which kept the few from controlling the many, like hedge funds owning banks.

Supposedly, our government is in the process of passing some of the most sweeping reforms since the Depression.

Wall Street is all about creating value out of nothing, which is exactly how they brought about this financial meltdown via the housing bubble. Without the restoration of the Glass Steagall Act the same thing is going to happen again and instead of sweeping reforms, they’ve swept the problem of “too big to fail” under the rug.

It’s only a matter of time before we’re threatened with financial collapse again and have to clean up the mess left behind by billionaires, whose “troubled financial institutions” create value out of some other trick bet. What are the odds we loose again? 　

They don’t care about the odds, people who created these large troubled financial institutions walk away with billions while we’re left with no jobs, no money and trillions in debt.

Thomas Jefferson was right, banks are more dangerous than standing armies. These crooks hijacked our economy, all without firing a single shot. And what is our government doing? Reloading the muskets and beefing up the corporate arsenal.