By Greg Hunter’s USAWatchdog.com
“Eat the Bankers” was written on a sign I saw in the background of the media coverage of the G20 meeting in London. To me the sign embodies the outrage working people have with the bankers. Not because there is an economic downturn but because the bankers are being put on a pedestal while the working stiff is being thrown under the bus. Nothing gets the attention of working people more than their jobs, income, pensions and savings being destroyed. It’s been reported that global financial assets lost 50 trillion dollars last year. Meanwhile, the bankers get unlimited bailouts and backdoor payouts for removing toxic assets from their balance sheets. For the most part, these are worthless or near worthless securities they themselves created and profited from. Bill Gross of PIMCO recently said that the Federal Reserve would have to expand its balance sheet to “5 or 6 trillion dollars.” The Fed currently has 2.2 trillion in these toxic assets bought from the banks to clear their balance sheets of bad debt. In total, the U.S. has already spent or committed in the neighborhood of 10 trillion dollars to “fix” the financial crisis. That’s enough money to just about pay off every mortgage in America!! Even with this massive amount of money spent or committed, the “powers” still say the credit markets are “clogged.” Is that like a giant log jam of money that needs to be blown up to get credit flowing again? My question is simple: How many more trillions will it take before the greedy incompetent bankers, who wrecked the world economy, will loan us our own money back? The answer is– no one really knows and even if they did know, they would not tell you because the number is just way, way too scary.
Tuesday President Obama said this, “We can not continue to excuse poor decisions. We can not make the survival of our auto industry dependent on an unending flow of tax payer dollars.” The White House asked GM CEO Rick Wagoner to step down. (Don’t feel bad for Mr. Wagoner, he will get more that 20 million in accrued compensation.) On top of that, President Obama even threatened bankruptcy for GM and Chrysler. Some speculate that was a ploy to get the bondholders and the UAW to take a haircut and keep GM from the taint of filing Chapter 11. Right on Mr. President! Now apply that kind of tough love to the financial institutions. But that is not what is happening to the folks who caused this mess. Instead of taking insolvent financial institutions into receivership, the banks, insurance companies and brokerage firms are getting TARP money from Treasury and toxic assets taken in trade for Treasury Bills from the Fed. No tough love there, just an… “industry dependent on an unending flow of taxpayer dollars.”
Meanwhile, back in the streets of London a protester holds a sign that says, “Capitalism isn’t Working.” Philip Jennings, UNI Global Union General Secretary, whose group represents 20 million workers, told CNBC that, “It isn’t working people that got us into this mess but it is working people paying the price.” Jennings predicts 50 million new unemployed and 200 million more will go into poverty. If that happens, civil unrest could breakout on a global scale and the financial crisis will morph into a catastrophe where no one, especially the bankers, will be safe.