Nomi Prins, the author of “It Takes A Pillage” and former Managing Director at Golman Sachs, just put in an appearance on CNN to say “we’re sitting on a pile of subsidized public risk” that’s only going to get worse. Prins says the amount of risk being taken by Wall Street has increased and so have their profits. That’s why the price-per-share value of the Wall Street firms has been rising. At the same time all the indicators on main street she says, point to things getting worse, with more people falling behind in their mortgage payments and an increased number of foreclosures. The situation out on main street she says, is worse now than it was before the feds forked over all that cash to bail out the banking industry.
” The Second Great Bank Depression has spawned so many lies, it’s hard to keep track of which is the biggest. Possibly the most irksome class of lies, usually spouted by Wall Street hacks and conservative pundits, is that we’re all victims to a bunch of poor people who bought McMansions, or at least homes they had no business living in. If that was really what this crisis was all about, we could have solved it much more cheaply in a couple of days in late 2008, by simply providing borrowers with additional capital to reduce their loan principals. It would have cost about 3 percent of what the entire bailout wound up costing, with comparatively similar risk.” -From “It Takes A Pillage”
Most troubling perhaps, is that according to Prins the government hasn’t done much to bring the situation under control.
Kinda sounds like a runaway train, doesn’t it? What a shock. Could it be there has been no meaningful legislation to control the financial industry because lobbyists for the bankers have sent truckloads of cash over to the hill? You know, the same thing the insurance and pharmaceutical companies have been doing to shoot down meaningful health care legislation? In any other environment it would be called exactly what it is. Bribe money.
Time for a reality check. This is now a nation of, by and for investment and commercial bankers, insurance companies, multi-national pharmaceutical manufacturers and anybody else with millions to throw at the House and Senate. The rest of us are basically screwed. And the greed driven train wreck it would seem, is on the way.