
'Oi Paulson, more billions over here'...
Sub heading: Why global capitalism takes the piss!
Picture the scene, friendly philanthropist handing out bits of blank paper to paupers who, literally are cap in hand, desperate for a bailout and being asked to fill out on a piece of paper the amount of cash they need. Once amounts are duly filled out and noted by friendly philanthropist…and faster than you can say ‘TARP rescue’ those ickle paupers are poor no more..
They can now spend the dosh on buying out other banks, fancy schmanchy junkets for their top people, just sit on the hot billions. But not used, it seems, for what the Treasury intended the cash for.
Well, the scenario above is pretty much how the US bailout worked. October’s edition of Vanity Fair remembers the one year anniversary of the bailout, and possibly has done more of a forensic examination of where the cash went than the US Treasury. And that’s the scary thing, no one knows where the cash went as the banks were under no obligation, apparently, to state where the money was going. The banks suckered everyone, and global capitalism knew…but didn’t give a damn.
No independence in overseeing the distribution of this large amount of dosh (well, that’s if you call a former banker at Goldman Sachs independent who downplayed the gravity of the subprime-mortgage crisis only months before his appointment, reportedly sending the message to one gathering on bankers, “There’s no problem here”…)
And if you want to keep track of the cash….don’t fret… a $20 million fee to a private contractor such as the Bank of New York Mellon…who will do the work for you. But hey, don’t worry about the further complications such as this specific contractor being in receipt of one of the handouts.
Who cares about conflicts of interests as the US Treasury under Paulson (another former employee with Goldman Sachs) certainly didn’t seem to!
When reading the article my jaw was dropping through shock and sheer disgust at the audacity of this blatant act of day light robbery committed by a colluding Treasury, aided and abetted by a greedy bunch of bankers (known as the Big 9) getting their sticky corrupt paws on billions and billions of dollars. And some of these banks didn’t even need the cash but were told to take it!
There were seemingly no controls, just the stipulation of getting the money out to these banks asap. Plus no accounting was provided by the banks…it seems.
The bailout was one big massive slush fund for the banks with their casino style investments. Why was this allowed?
Now we are seeing a return to form with big fat bonuses coming back into fashion, like they never went away. Obama may state that, We will not go back to the days of reckless behaviour and unchecked excess at the heart of this crisis.
But where the hell did the original bailout cash go?
There are junkets galore, bonuses, buy-outs yet who is paying for this economic shock crisis? Well, it certainly aint the banks…or the neoliberals who got us into this fine mess in the bloody first place.
Oh, and even better the tax havens are crying poverty. The punch line being: ‘We pay taxes so they don’t have it’…..
Hey, here’s an idea instead why don’t the banks fund the libraries in Philly!