Monday, April 11, 2011

Reprise-- Happy Now?

I was listening to Morning Joe today and they spent a great deal of time again bashing Bankers and Wall St. about the bailouts and the come back of Bank and Wall St. profitability and bonuses, while Main St. has not recovered.

Of course, Main St. is recovering, if not as fast. I also noted that they didn't talk about how well most farmers have done with the rise in commodity demand and food prices, or how well Texas has done with soaring oil prices. Both farmers and oil companies get billions of dollars in direct subsidies from the taxpayer that, unlike the Bank bailouts, don't even have to be repaid.

No all they beat on was the surviving Banks that have returned to profitability and big bonuses. Naturally, they didn't mention the Banks that got wiped out like Lehman Brothers, Baer Stearns, Washington Mutual, Wachovia and all the scores of regional and community banks that went under; along with their executives who lost their jobs and savings.

They also never mentioned that those Banks have repaid all of the "bailout" funds along with a handsome returm to the taxpayers.

Nor did they mention that "recovered" Banks like Citi have a current stock price of $4 ,down from $50 before the crisis.

Since they were so unhappy that the Banks are profitable again and paying bonuses , I thought I'd re-post my post on this very subject back on January 12, 2010. It's truer and more relevant today than it was back then.



Here's a future news story that should make the American public, pundits and politicians happy:

"Banks announce record losses today and cancellation of all bonuses.

The Dow Jones plunged to below 4,000 with resulting massive losses in all 401(k)s, employee pension funds and other pubic investment vehicles.

Housing prices dropped another 40% with complete shutdown of lending by weaken banks.

Jobless rate approaches 20%."

At last the public, pundits and politicians are happy because they really socked it to Wall St and those Bankers. Boy does that feel good.


Posted By Eric Schiller to Meditations at 1/12/2010 12:15:00 PM