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Bail-out of the rich has begun
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by Mr. Chuckles, Unknown News
Aug. 10, 2007
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The Federal Reserve
has "injected liquidity" in the banking system. The Fed is printing new money and
exchanging it for rotten "mortgage-backed
securities" collateral.
"Injecting liquidity" by buying crappy
mortgages from banks does not stop the
foreclosures and evictions. It simply
guarantees that the bankers will not be
foreclosed and evicted.
And it rewards
incompetence and foolhardy risk-takers
who got us into this mess in the first
place, creating a "moral hazard" (bailing
out market participants who would fail
in a true free market and rewarding
them for their malfeasance and ineptitude.)
All of the collateral accepted by the Fed was mortgage-backed debt. All of it. Bush has said in so many words that there will be no federal help for the huge number of people who have lost, are losing, and will lose their homes. They're screwed. But the banks, the corporations, and
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Teetering banking system gets $38,000,000,000 injection from Fed
Excerpt: The U.S. Federal Reserve provided the banking system with $38 billion on Friday, the largest amount of liquidity since the days after the September 11 attacks six years ago, adding ample funds for the second day running as financial markets fretted over credit conditions.
The Fed also took the unusual step of making a rare statement after the first operation -- the first time it's done so since the September 11, 2001, terror attacks -- in an effort to calm investors' fears. ...
The Fed said all of the collateral accepted in the 3-day repossessions on Friday was mortgage-backed debt.
The Fed added a total of $87.5 billion to its reserves this week, compared with a total of $50.25 billion last week.
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the multi-millionaires will be protected.
I think we can lay to rest the urban myth of
the Bush "free market" economy, which is often
used as justification for not implementing
universal health care, and for allowing corporations
worth tens or hundreds of billions of dollars
and which earn billions of dollars in profits
to receive special tax breaks and government
hand-outs.
Like Halliburton, which received
no-bid contracts, then did substandard work
in Iraq, and has now relocated to Dubai. Or
Exxon, Chevron, Conoco, etc., which receive
special tax breaks for drilling, pay minimal
royalties on "the People's" oil, and then
use the money to buy back their own stock
and pay dividends instead of drilling for
more oil or investing in alternative energy.
The "free market" does not exist in America.
What we have is a partnership between
the U.S. government and the corporations to
decide how the wealth is distributed.
You may apply the label of your choice. My
choice has 7 letters, begins with "f" and
has two vowels.
© by the author.
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I think we can lay to rest the urban myth of the Bush "free market" economy, which is often used as justification for not implementing universal health care, and for allowing corporations worth tens or hundreds of billions of dollars and which earn billions of dollars in profits to receive special tax breaks and government hand-outs.
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