Wednesday, September 17, 2008

'by the people for the Corporation..."

Equity and currency traders love this market volatility. I wish I could train more people to trade. This is the biggest redistribution of wealth in our generation. But as the Financial Sector fat rats run for cover and point fingers at each other it's the American taxpayer who will ultimately be left paying/taking the hit.

"by the people FOR the people ...." is a joke as it has been all about the Corporation in America. Most economic systems stand up well when times are good . It is in times of trouble and turmoil that it's clearly spelled out: American Capitalism is FLAWED and Failing, apparently it works only when there is a market to exploit, ie. foreign labour, natural resources etc. and no real oversight, as has been the case for the last 150 years. Now it all comes Home to roost, unfortunately the US will drag many other countries into the quagmire.

"We're essentially continuing a system where profits are privatized and...losses socialized," said Nouriel Roubini, a professor at New York University's Stern School of Business, adding that auto makers, airlines and other struggling businesses would no doubt be asking for government help too.

Between the $29 billion the Fed pledged to swing the Bear Stearns sale to JPMorgan in March, $100 billion apiece to rescue mortgage finance firms Fannie Mae and Freddie Mac, up to $300 billion for the Federal Housing Authority, Tuesday's $85 billion loan to insurer AIG and various other rescue deals and loans, taxpayers are potentially on the hook for more than $900 billion.

Where does the average Joe Taxpayer go to get bailed out.?

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