Friday, January 15, 2010

There's a bad moon rising

From banker testimony before the Financial Crisis Inquiry Commission:
[A financial crisis is something that] "happens every five to seven years. We shouldn't be surprised." Another CEO likened such things to a huricane nobody could see coming. Heck of a job Brownie. The stock in these august institutions tanked today when their earnings reports came out. Losses from mortgages and credit cards were worse than expected. Do you hear the wind? There’s a bad moon rising, mind the storm surge.

In her testimony, Chairman of the FDIC Sheila Bair, pointed out that the Federal Reserve was given jurisdiction over these shadow banks that were beyond the reach of the FDIC and the Fed did exactly nothing. Why should the Fed regulate, they covered the losses with trillions in new paper. Profits are at record levels, these institutions are bigger and stronger than ever. Just look at their bonus schedule! Do you hear the voice of rage and rain?

President Obama wants to recover the losses to the TARP by charging these parasites a small fee that will take twenty years to recover a hundred billion. The bankers shot right back with the standard response that they will just pass it along to their customers. Of course they will, the only thing that holds Wall Street bankers back is that they can’t take more than a 100%. It’s estimated that they will give out bonuses of 145 billion for 09 alone. We’re in for nasty weather.


Darlette said...

Don't get mad; Get f*cking even!

Move your money OUT of the Big Banks and go to either smaller, community banks or credit unions.