Sunday, April 12, 2009
"Geithner's dirty little secret"
I doubt we'll ever know all there is to know about this.
I hope we've learned not to let any corporation get too big, i.e. so big that mismanagement can wreak havoc on an entire industry, or the entire world, for that matter.
Isn't there a warning about putting all your eggs in one basket?...
I hope we've learned not to let any corporation get too big, i.e. so big that mismanagement can wreak havoc on an entire industry, or the entire world, for that matter.
Isn't there a warning about putting all your eggs in one basket?...
In the Asia Times Online, F. William Engdahl writes:
"The government bailout of AIG, at more than $180 billion so far, has primarily gone to pay off AIG's credit default swap obligations to counterparty gamblers Goldman Sachs, Citibank, JP Morgan Chase and Bank of America, the banks who believe they are 'too big to fail'. In effect, these institutions today believe they are so large that they can dictate the policy of the federal government. Some have called it a bankers' coup d'etat. It definitely is not healthy.
Geithner and Wall Street are desperately trying to hide this dirty little secret because it would focus voter attention on real solutions. The federal government has long had laws in place to deal with insolvent banks. The Federal Deposit Insurance Corporation (FDIC) places the bank into receivership, its assets and liabilities are sorted out by independent audit. The irresponsible management is purged, stockholders lose and the purged bank is eventually split into smaller units and when healthy, sold to the public. The power of the five mega banks to blackmail the entire nation would thereby be cut down to size."
