Best of the Week
Most Popular
1. Market Decline Will Lead To Pension Collapse, USD Devaluation, And NWO - Raymond_Matison
2.Uber’s Nightmare Has Just Started - Stephen_McBride
3.Stock Market Crash Black Swan Event Set Up Sept 12th? - Brad_Gudgeon
4.GDow Stock Market Trend Forecast Update - Nadeem_Walayat
5.Gold Significant Correction Has Started - Clive_Maund
6.British Pound GBP vs Brexit Chaos Timeline - Nadeem_Walayat
7.Cameco Crash, Uranium Sector Won’t Catch a break - Richard_Mills
8.Recession 2020 Forecast : The New Risks & New Profits Of A Grand Experiment - Dan_Amerman
9.Gold When Global Insanity Prevails - Michael Ballanger
10.UK General Election Forecast 2019 - Betting Market Odds - Nadeem_Walayat
Last 7 days
Weekly SPX & Gold Price Cycle Report - 17th Oct 19
What Makes United Markets Capital Different From Other Online Brokers? - 17th Oct 19
Stock Market Dow Long-term Trend Analysis - 16th Oct 19
This Is Not a Money Printing Press - 16th Oct 19
Online Casino Operator LeoVegas is Optimistic about the Future - 16th Oct 19
Stock Market Dow Elliott Wave Analysis Forecast - Video - 16th Oct 19
$100 Silver Has Come And Gone - 16th Oct 19
Stock Market Roll Over Risk to New highs in S&P 500 - 16th Oct 19
10 Best Trading Schools and Courses for Students - 16th Oct 19
Dow Stock Market Short-term Trend Analysis - 15th Oct 19
The Many Aligning Signals in Gold - 15th Oct 19
Market Action Suggests Downside in Precious Metals - 15th Oct 19
US Major Stock Market Indexes Retest Critical Price Channel Resistance - 15th Oct 19
“Baghad Jerome” Powell Denies the Fed Is Using Financial Crisis Tools - 15th Oct 19
British Pound GBP Trend Analysis - 14th Oct 19
A Guide to Financing Your Next Car - 14th Oct 19
America's Ruling Class - Underestimating Them & Overestimating Us - 14th Oct 19
Stock Market Range Bound - 14th Oct 19
Gold, Silver Bonds - Inflation in the Offing? - 14th Oct 19
East-West Trade War: Never Take a Knife to a Gunfight - 14th Oct 19
Consider Precious Metals for Insurance First, Profit Second... - 14th Oct 19
Stock Market Dow Elliott Wave Analysis Forecast - 13th Oct 19
The Most Successful IPOs Have This One Thing in Common - 13th Oct 19
Precious Metals & Stock Market VIX Are Set To Launch Dramatically Higher - 13th Oct 19
Discovery Sport EGR Valve Gasket Problems - Land Rover Dealer Fix - 13th Oct 19
Stock Market US Presidential Cycle - Video - 12th Oct 19
Social Security Is Screwing Millennials - 12th Oct 19
Gold Gifts Traders With Another Rotation Below $1500 - 12th Oct 19
US Dollar Index Trend Analysis - 11th Oct 19
China Golden Week Sales Exceed Expectations - 11th Oct 19
Stock Market Short-term Consolidation Does Not change Secular Bullish Trend - 11th Oct 19
The Allure of Upswings in Silver Mining Stocks - 11th Oct 19
US Housing Market 2018-2019 and 2006-2007: Similarities & Differences - 11th Oct 19
Now Is the Time to Load Up on 5G Stocks - 11th Oct 19
Why the Law Can’t Protect Your Money - 11th Oct 19
Will Miami be the First U.S. Real Estate Bubble to Burst? - 11th Oct 19
How Online Casinos Maximise Profits - 11th Oct 19
3 Tips for Picking Junior Gold Stocks - 10th Oct 19
How Does Inflation Affect Exchange Rates? - 10th Oct 19
This Is the Best Time to Load Up on These 3 Value Stocks - 10th Oct 19
What Makes this Gold Market Rally Different From All Others - 10th Oct 19
Stock Market US Presidential Cycle - 9th Oct 19
The IPO Market Is Nowhere Near a Bubble - 9th Oct 19
US Stock Markets Trade Sideways – Waiting on News/Guidance  - 9th Oct 19
Amazon Selling Fake Hard Drives - 4tb WD Blue - How to Check Your Drive is Genuine  - 9th Oct 19
Whatever Happened to Philippines Debt Slavery?  - 9th Oct 19
Gold in the Negative Real Interest Rates Environment - 9th Oct 19
The Later United States Empire - 9th Oct 19
Gold It’s All About Real Interest Rates Not the US Dollar - 8th Oct 19
A Trump Impeachment Would Cause The Stock Market To Rally - 8th Oct 19
The Benefits of Applying for Online Loans - 8th Oct 19
Is There Life Left In Cannabis - 8th Oct 19
Yield Curve Inversion Current State - 7th Oct 19

Market Oracle FREE Newsletter

Stock Market Trend Forecast Oct - Dec 2019 by Nadeem Walayat

US Tax Payers Funding Banks Corporate Welfare System

Politics / Credit Crisis 2008 Mar 19, 2008 - 07:52 AM GMT

By: Walter_Brasch

Politics It's a Welfare State—If You're Rich - Listen to conservative talk show pundits and blowhards. Listen to any of the political candidates who proudly amend their names with the phrase “conservative Republican.” One theme resonates in all of the heavy wind—keep the government out of our private lives; let business enjoy a free market economy. Not only should government regulation be minimal, they say, but we must end the “welfare state.”


Of course, what they mean is don't help the individual; help only corporations by giving them significant tax breaks and low-interest loans.

The Federal Reserve last week approved a $200 billion loan program at significantly less than market rates to aid the nation's largest banks. It has also created an almost unlimited credit line for the top 20 struggling investment firms. This past Sunday, it approved a $30 billion credit line to allow financial giant JP Morgan Chase to take over failing financial giant Bear Stearns. Less than a year earlier, Morgan Chase was the recipient city and state subsidies of more than $750 million over a 15 year period; with assets of about $1.6 trillion, it is the nation's third largest financial institution. The $236 million sale, brokered and sanctioned by the Fed and the Department of Treasury, includes Bear's New York skyscraper and about $30 billion in assets of a company days from filing bankruptcy.

Bear's stock one year ago was about $170 a share; Morgan Chase paid just $2 a share. As many as one-third of Bear's 15,000 employees, and several thousand of Morgan Chase's 175,000 employees, are likely to be laid off in the acquisition.
Twice in the past three years, Fortune magazine rated Bear Stearns as the nation's “most admired securities firm. The 85-year-old company had survived the Great Depression of 1929 and several recessions; it couldn't survive the current recession, the one George W. Bush doesn't believe exists.

Bear's problems, like that of dozens of major lenders, stemmed from aggressive sub-prime lending practices. About $1.3 trillion of sub-prime loans is still outstanding, according to the Center for Responsible Lending. The materialistic greed of two years ago, which led to inflated stock prices, has become the financial panic of George Bush's last year in office.

Perhaps the Fed's multi-billion dollar dealings will help the economy. George Bush says he's “on top of the situation.” He says that although there is “a lot of uncertainty,” things are “ not that bad.” He says he wants Americans “to understand that in the long run we're going to be just fine.”

That isn't much consolation to all Americans who are paying more than $3 a gallon for gas, or to the 7.4 million Americans who are unemployed, the two million Americans who were forced to declare bankruptcy the past two years, or the one million Americans, most of whom have unblemished work histories, who have already lost their homes—none of whom are beneficiaries of the government's corporate welfare system.

By Walter M Brasch PhD
http://www.walterbrasch.com

Copyright 2008 Walter M Brasch
Walter Brasch is a university journalism professor, syndicated columnist, and author of 17 books. His current books are America's Unpatriotic Acts , The Federal Response to Hurricane Katrina , and Sex and the Single Beer Can: Probing the Media and American Culture . All are available through amazon.com, bn.com, or other bookstores. You may contact Dr. Brasch at brasch@bloomu.edu

Walter Brasch Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules