How about austerity for Wall Street?

wallstreetby Mon Labiaga Ferrer

Bankers will take $5 trillion from American economy over the coming decade
[Via Boing Boing]

How to succeed by failing: be a banker. From CNN World:

For the American economy – and for many other developed economies – the elephant in the room is the amount of money paid to bankers over the last five years. In the United States, the sum stands at an astounding $2.2 trillion. Extrapolating over the coming decade, the numbers would approach $5 trillion, an amount vastly larger than what both President Barack Obama’s administration and his Republican opponents seem willing to cut from further government deficits.

That $5 trillion dollars is not money invested in building roads, schools and other long-term projects, but is directly transferred from the American economy to the personal accounts of bank executives and employees. Such transfers represent as cunning a tax on everyone else as one can imagine. It feels quite iniquitous that bankers, having helped cause today’s financial and economic troubles, are the only class that is not suffering from them – and in many cases are actually benefiting.

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Nothing is being done against these guys. we are continually being divided over pretty inconsequential things so that these guys can continue the same policies that already destroyed the economy.

Best comment I’ve read: “Why are you screaming about Mexicans when silk-suited frauds on Wall Street take all your money?”

I firmly believe that America can never be put back on the right path until these guys are reined in, hard.

2 thoughts on “How about austerity for Wall Street?

  1. Why don’t Krugmen and the rest of the Administration’s czars do away with things like hedge funds and selling mortgages? The Feds gave banks all sorts of money. Why can’t they be forced to pay off mortgages with it? Why are Freddie and Fannie mortgages paid off and dissolve Fannie and Freddie? The AMERICAN DREAM was never about running on credit. It was about having the chance to work to buy. Not be given a credit card from a bank. For that matter, don’t let banks give credit cards!

    1. Because the President is not a King. It takes legislation from Congress to do what you say and regulate Congress. Instead, the GOP wants to get rid of anything that might regulate hedge funds, banks and anything else in the financial sector. Congress made it easier for banks to give out credit cards, allowed them to use usurious interest rates and changed bankruptcy laws ti help the banks.

      Democrats have proposed cramdown mortgages – forcing the banks to refinance the mortgage at the current house price rather than on the old one. This in many cases gets rid of any need for foreclosure.The GOP has stopped it.

      Blame the President for what he does but please put the blame on Congress for doing what they are doing also. – letting Wall Street pull in the highest profits ever while telling the average American they have to do without.

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