Geithner's Banking Plan - Crony Capitalism Takes From Society Coming And Going
This is a topic that simply needs to get into the mainstream press. For whatever reason it hasn't. I've brought this up before but now I want to dedicate a post to it. Were the press reporting this, any Geithner plan involving public-private partnerships would be dead on arrival. If changing this country's future means anything to you, discuss this topic with an associate, blog about it, write your Congressperson or if you are a journalist, write about this topic on the front page of your publication. This madness must end.
This idea of a public-private partnership is another example of stealing from society. Americans have never been presented an option at the voting booth to sell off public assets. These public-private partnerships are a method for major corporations and large concentrations of capital to acquire publicly owned assets. Almost always in distress. Almost always at prices equating to extortion. Why else would government sell off a toll road or a bridge or any other asset? Because they were one, fiscally unable to manage that asset or two, were lobbied by special interests with a desire to acquire assets beneficial to these special interests. ie, The two scenarios are most likely distress or seamy dealings. Now we see concentrations of private capital in the financial industry are on the verge of the greatest heist in history. And, the American people are about to be the victim.
Warren Buffet recently remarked that the best investment returns on a go forward basis could very well be many of the distressed assets sitting on the banks books. The very fact that Geithner's plan involves government buying these assets and reselling them to private financial corporations and financial firms is a red flag. The recipients of this scheme are the same general group of financial firms complicit in creating this mess be it private equity or hedge funds or other financial entity. And, Geithner's plan uses taxpayer backing to ensure these assets provide a substantial return to these firms. In other words, society is again taking the burden of risk and the same system that destroyed the American economy is going to be positioned with assets that Buffet believes are likely to be substantially lucrative investments. How does this benefit society? Once again Americans are getting the shaft. Not only did we get to bail out this crooked scheme in the first place, but to clean up the mess the taxpayers are again going to get the shaft while we sell these assets back to the same financial system at a significant loss to society? You have got to be kidding me. This can be characterized by no other analysis than stealing from society. This scheme rewards the very few "connected" firms under the same crony schemes that created this mess.
If the government feels compelled to run the world, why should they sell off anything to create profit for a select few? As the expense of society? What ever happened to the original HOLC program we first wrote about when this crisis started? Something Alan Blinder proposed a year ago. This solution isn't palatable to the "connected" firms that are attempting to pull the strings of our government. Why do we need to sell off anything at distressed prices? To a chosen few? If the government feels compelled to buy distressed assets, why aren't the assets held in a public trust? For all of society to benefit from or to be burdened with? If society is told it is a necessity to bail out bankers to save our economic system from collapse, then why aren't policies for the benefit of society? There are surely thousands of better ideas put forth by competent minds.
This is exactly what happened in the last real estate fiasco around 1990. The financial industry created a real estate crisis. Then as the system shuddered and went bust, the distressed assets created by the crisis were sold back to the same financial industry at fire sale prices while the taxpayer was stuck with the bill. The end result? That was so fun the financial industry did it again! And here we are at the same crossroads. Society is being bilked for the benefit of a chosen few. And, how are those "chosen few" chosen? I would surmise there is an interesting trail to the origination of these ideas. Might it be from those who have the loudest voice in government? Might that be lobbyists? The same lobbyists that bilked government of taxpayer money for Wall Street in the original bailout? The same lobbyists that deregulated our financial system to create this crisis? The same lobbyists who convinced government that bonuses should be part of any bailout? The same lobbyists that were paid billions by financial firms. Financial firms that used our money to pay them? Any plan that involves a public-private partnership is not in the best interests of America.
This is more of the same scheming that created this mess - steal from society and give to a very few. Geithner's public-private plan should be dead on arrival. This scheme needs to be exposed to the American people by a press attempting to educate and inform the sovereign. Legitimate public discourse and discovery is the only answer to the problems that face this country. Not more of the back room dealings of politicians and the finance industry.
This has got to end. Our corrupt financial system continues to destroying society.
This idea of a public-private partnership is another example of stealing from society. Americans have never been presented an option at the voting booth to sell off public assets. These public-private partnerships are a method for major corporations and large concentrations of capital to acquire publicly owned assets. Almost always in distress. Almost always at prices equating to extortion. Why else would government sell off a toll road or a bridge or any other asset? Because they were one, fiscally unable to manage that asset or two, were lobbied by special interests with a desire to acquire assets beneficial to these special interests. ie, The two scenarios are most likely distress or seamy dealings. Now we see concentrations of private capital in the financial industry are on the verge of the greatest heist in history. And, the American people are about to be the victim.
Warren Buffet recently remarked that the best investment returns on a go forward basis could very well be many of the distressed assets sitting on the banks books. The very fact that Geithner's plan involves government buying these assets and reselling them to private financial corporations and financial firms is a red flag. The recipients of this scheme are the same general group of financial firms complicit in creating this mess be it private equity or hedge funds or other financial entity. And, Geithner's plan uses taxpayer backing to ensure these assets provide a substantial return to these firms. In other words, society is again taking the burden of risk and the same system that destroyed the American economy is going to be positioned with assets that Buffet believes are likely to be substantially lucrative investments. How does this benefit society? Once again Americans are getting the shaft. Not only did we get to bail out this crooked scheme in the first place, but to clean up the mess the taxpayers are again going to get the shaft while we sell these assets back to the same financial system at a significant loss to society? You have got to be kidding me. This can be characterized by no other analysis than stealing from society. This scheme rewards the very few "connected" firms under the same crony schemes that created this mess.
If the government feels compelled to run the world, why should they sell off anything to create profit for a select few? As the expense of society? What ever happened to the original HOLC program we first wrote about when this crisis started? Something Alan Blinder proposed a year ago. This solution isn't palatable to the "connected" firms that are attempting to pull the strings of our government. Why do we need to sell off anything at distressed prices? To a chosen few? If the government feels compelled to buy distressed assets, why aren't the assets held in a public trust? For all of society to benefit from or to be burdened with? If society is told it is a necessity to bail out bankers to save our economic system from collapse, then why aren't policies for the benefit of society? There are surely thousands of better ideas put forth by competent minds.
This is exactly what happened in the last real estate fiasco around 1990. The financial industry created a real estate crisis. Then as the system shuddered and went bust, the distressed assets created by the crisis were sold back to the same financial industry at fire sale prices while the taxpayer was stuck with the bill. The end result? That was so fun the financial industry did it again! And here we are at the same crossroads. Society is being bilked for the benefit of a chosen few. And, how are those "chosen few" chosen? I would surmise there is an interesting trail to the origination of these ideas. Might it be from those who have the loudest voice in government? Might that be lobbyists? The same lobbyists that bilked government of taxpayer money for Wall Street in the original bailout? The same lobbyists that deregulated our financial system to create this crisis? The same lobbyists who convinced government that bonuses should be part of any bailout? The same lobbyists that were paid billions by financial firms. Financial firms that used our money to pay them? Any plan that involves a public-private partnership is not in the best interests of America.
This is more of the same scheming that created this mess - steal from society and give to a very few. Geithner's public-private plan should be dead on arrival. This scheme needs to be exposed to the American people by a press attempting to educate and inform the sovereign. Legitimate public discourse and discovery is the only answer to the problems that face this country. Not more of the back room dealings of politicians and the finance industry.
This has got to end. Our corrupt financial system continues to destroying society.
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