…Fed Chairman Ben S. Bernanke’s unprecedented effort to keep the economy from plunging into depression included lending banks and other companies as much as $1.2 trillion of public money, about the same amount U.S. homeowners currently owe on 6.5 million delinquent and foreclosed mortgages. The largest borrower, Morgan Stanley (MS), got as much as $107.3 billion, while Citigroup took $99.5 billion and Bank of America $91.4 billion, according to a Bloomberg News compilation of data obtained through Freedom of Information Act requests, months of litigation and an act of Congress…
Describing it as an effort to stave off depression is being overly generous…though, giving the benefit of the doubt, Bernanke, himself, might have thought that is what he was doing. The reality is that a bunch of well-connected banks gambled, lost and then were bailed out by the taxpayers. The whole effort, in reality, was to ensure that those at the top of the financial industry heap didn’t pay the price of their folly…and they managed to get all that money because, as I’ve said, Big Government and Big Corporation are two sides of the same coin…they are run by the same people and have the same basic worldview: the people are lunch.
We have to ensure that in the future no one ever falls for “too big to fail”. If a corporation has screwed up, then let it fail. In this, there is a gigantic issue we Republicans can run on because, right now, Obama and his Democrats are hip deep in this nonsense. There was no fundamental difference between the bail out of GM and the bail out of Morgan Stanley…both were run by idiots who deserved to lose and both were bailed out because of excellent political connections.
We can tie the whole nauseating mess in to a neat, little package and explain to the American people that the “Bigs” have to go, because both of them are bad. Thing is – do we have the courage to do it?