Sunday, 28 September 2008

Wall Street Bail out is a fraud on the ordinary people.

The "Wall Street Bail Out" being proposed by the head of the US Treasury is a fraud on the people - in my opinion.

For the life of me I cannot see the point - let alone the moral justification of this vast expenditure.

Firstly, people who ought to know say that the US$700 Billion "rescue plan" will go nowhere towards covering the funds which have been lost. So, the US$700 billion will be gratefully received by the bankers, who will use it to comfort themselves, as they cry about how much more they have lost. Then they will ask for more, to cover their real losses.

But losses is the correct term. These people are NOT INVESTORS, they are SPECULATORS, or put more prosaically, GAMBLERS.

Therefore, I ask, why bail them out? - with taxpayers money?

When they won big - and trust me, they did, over the last 30 years - did they offer to give that money away to anyone else? I don't think so. Certainly not to the taxpayers, or the Government. These people led the way in covering their profits inside tax havens, and by accounting ruses. They invented the phrase: "Paying taxes is optional" - and by and large, it has never been an attractive option to the mega-wealthy.


In biological terms, I am an evolutionist, and to me it seems that these people are like dinosaurs, objecting to a cloud of dust blocking out the sun - because it will lead to their extinction. However, they have ignored the fact that the huge comet, or asteroid, has already hit the earth. The process has already started.

The analogy breaks down, however, because these people brought this disaster upon themselves, unlike the dinosaurs, who did not ask for the asteroid or comet to hit the earth.

I am not the only "crazy" arguing against the "bail-out" of the Bankers. (source: Mike Adams - of the suspiciously named "Truth Publishing")

  • "The key tipping point here will be when foreign banks stop buying U.S. debt or, just as dangerously, when foreign banks start SELLING OFF U.S. debt.
  • "Either one will trigger a landslide rush to dump U.S. debt, flooding the market with useless paper that no one wants to buy.
  • "Germany, China and many other countries are already calling for an end to the American Empire. And sadly, China actually has a way to accomplish that end. All they have to do, right now, is start a fire sale of U.S. debt, and the American empire crumbles within days."
DJW Comment: The only thing which may save the Americans is the fact that China needs the Americans to keep buying the cheap consumer goods which China is producing.


Gouldiae said...

Spot on Denis.
I can't imagine anyone bailing out you or I if we overdrew our accounts. I have concerns that the bail out won't do anything except perhaps, over time, foster the greed that encouraged the mess in the first place - 'No need to worry, if we go belly up the tax payers will step in and cover our arses'.

Denis Wilson said...

Thanks Gouldiae
I don't want the market to collapse, but a little bit of justice wouldn't go astray.
Maybe they should bail the companies out, but jail the Directors and high-flying traders.
That might seem a reasonable compromise.