Everyone is out bombing Obama for attacking the banks. Well, looks like Bernanke attacked his own financial system and is making fools out of those who are defending the banks. Here is what he said:
BERNANKE: “I would just say very generally, I think people are quite unhappy with the state of the economy and what’s happening. They blame, with some justification, the problems in the financial sector for getting us into this mess, and they’re dissatisfied with the policy response here in Washington. And at some level, I can’t blame them. Certainly, 9 per cent unemployment and very slow growth is not a good situation.”
OK, Tea Party Bank Pimps, or Tea Pimps for short, you cannot defend the banks when the head banker says it is the banks’ fault. Your story is corrupt, your reason for being is questioned. The man spoke, the banker to the bankers. He knows whose fault it is. So all you followers of Ricky Santelli are broken and exposed for the mean spirited liars that you have always been. You make me sick, all of you rotten apples. Santelli, you should be ashamed.
So, now that I have that off my chest, it is certain that the libertarians, who I am at war with, will somehow figure some excuse for the robber barons, since they defended the last batch of robber barons in the late 1800’s. But know this, libertarians, the last robber barons, as dastardly greedy and predatory as they were, at least furthered industry. The current crop of robber barons has done nothing but tie up the world in knots with derivatives and gambling. Surely Mises would not have wanted deregulation to come to this? Or would he? Seems like the libertarians want the banks to play any sort of speculative game they want to play. And you really think you will not blink as the next financial meltdown occurs and capital leaves our nation?
We are like Tweety in a cage, so that if it collapses, we get eaten by Sylvester. Do we really want to destroy our cage? We all hate bank bailouts. But no bailouts could be a cure worse than the disease. Yes, the bailouts should have had more of a payback to the US government, but without them we could have had all major capital disappear from the USA!
So as far as blame goes for this mess, don’t go blaming the borrowers, the minorities, the poor or anybody else for the financial system excess. You need to go to the representative of the bankers to get the skinny on the problems in the financial sector. The easy money toxic lending and the hedging of risk and speculative games should be blamed for getting us into the financial mess we are in. Obama has been too nice to the banks and Geithner should step aside and let the prosecutors prosecute.
One would almost think that libertarians hate justice. I think they hate anything that gets in the way of their perverse notions of economic freedom. And they have a lot of influence among the Tea Pimps, like Eric Cantor, the hedge fund’s man in Washington. Just like Blankfein, Cantor must be doing God’s work in trying to keep the hedge fund boys from paying a dime more in tax and in trying to keep the funds off the Dodd-Frank to big to fail list, which would disqualify them from playing in the next hurtful housing bubble.
And for predicting the next housing bubble, I have been called a flake here by comments coming at me like daggers. Well, then why are the banks so opposed to Elizabeth Warren, who wants to let people know that their mortgage will be toxic?
Why would the banks want to stop a woman from exposing something the banks don’t want to do anymore, unless of course, they really want to do it again? The banks want toxic loans to flow again! Is that ok with you libertarians who never saw a scam you wouldn’t fall for? You say you can stop the scam but I say you cannot. Elizabeth Warren could stop the scam, or at least slow it down, but you libertarians will never stop it because you are so mamby pamby about government, even though you hate the scams.
Why don’t you libertarians just grow up? Grow up!
And speaking of Eric Cantor, he skirted the issue of the Civil Rights Act, when asked to comment on Rand Paul’s refusal to support it. You see, Rand Paul and the libertarians believe in voluntary relationships, or voluntary associations as being the law of the land. That wipes out the Civil Rights Act of 1964 which holds that you cannot discriminate regarding public accommodation based on race, religion, creed. That is a pretty important law that is important to America. But the logic of the libertarians and of Cantor, who in his heart of hearts showed his disdain for the law by not affirming the law, is bankrupt.
It is time that the libertarians, the Tea Pimps and Wall Street be relegated to the dark side where they normally reside in times of calm. They are all birds of a feather, and I am not talking about an eagle. The only two ways to stop the future predatory behaviour by bankers is to prosecute and regulate. Anything short of these two methods is doomed to failure. Regulation includes vastly raising margin requirements everywhere on every bet. Obama has an opening here and instead of pleasing no one he perhaps could please main street by tough action against the banks so that this gambling stops.