- Bankers are still committing financial fraud;
- Politicians are still covering up this fraud even when reported by government regulators;
- When the bills come due at these gambling firms…ah…“banks,” governments are still handing taxpayer funds to the banks and allowing the criminals to walk away with their pockets stuffed full of what amounts to stolen cash.
READINGS: For those of you who are masochists, further details are available via The New York Times, an Icelandic financial blog, the French paper Liberation, and this blog. Warning – consumption of these items during meals may cause serious gastro-intestinal upset.
On the secret bailouts Washington handed U.S. banks (beyond the well-publicized TARP bailout), see “Which Bank Is the Worst…”; for brilliant graphs showing the degree to which the rich are stealing the American Dream away from the other 99%, see “The Shocking Graphic Data….”
On the confused, corrupted, and weak-kneed effort of the 50 state attorneys general to hold Big Finance to account, see the critically important analysis by Adam Levitin, “The Sweep It Under the Rug Housing Plan.” Levitin sums up the situation facing U.S. society nicely:
Who should pay? This is basic justice. Those who broke the economy should pay to fix it. You break it, you take it. We bailed out the banks because they are indispensible to the economy as a whole, but that doesn’t mean that they shouldn’t have to pay now. $20-25 billion is a fine price tag for robosigning. But this isn’t and shouldn’t be about robosigning. Robosigning was symptom of a much larger endeavor in reckless lending, in which corner cutting was the order of the day, from MERS to securitization paper work to no-doc loans. All of this was done to maximize profits and to enable a housing bubble that was hugely profitable to a limited number of financial institutions and with extraordinary collateral damage. Simply put, there needs to be accountability for blowing up the economy.