Subsidizing Wall St. (or Putting It To the People)

As most of us are aware the Fed is no friend to the People. Quantitative Easing is an outrageous outcome of Too Big To Fail. Matt Taibbi elaborates:

“… the thing I want to focus on is the subsidy aspect of QE, pointed out in the video. QE is designed to buy Treasuries and other assets, but the Fed does not simply go out and buy Treasuries itself; it does it through its primary dealers, who include of course banks like Goldman, Sachs. The Fed all but announces when it’s going to be doing this buying and in what quantity, which allows the banks to buy up this stuff at lower prices ahead of time and then sell it to the Fed at inflated cost.

Even forgetting about the obvious insider trading aspect to all of this, the official middleman status of the banks is a direct government subsidy and it is little remarked upon, even by the Tea Party crowd, which is otherwise so opposed to “welfare.” But these sorts of subsidies exist all throughout the financial services industry.”

Read more: http://www.rollingstone.com/politics/blogs/taibblog/quantitative-easing-the-hidden-government-subsidy-for-banks-20101115#ixzz2l0BkcfvL
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About elroyjones

Married, no children, responsibly self-directed, living happily.
This entry was posted in Politics and tagged , , . Bookmark the permalink.

6 Responses to Subsidizing Wall St. (or Putting It To the People)

  1. umm… well I am now sorry about your last post… because after reading this one I am going to need health insurance… for when I shoot myself…

    • elroyjones says:

      The trick is not to be discouraged. There is a statistic floating around that says it takes only 3.5% of a country’s population to force government to change. Imagine if all the disgruntled citizens sent email to their elected officials. We did have success in avoiding a war in Syria when we applied pressure.

  2. Gee, maybe we could put on a play in Farmer Smith’s barn called Putting It to the People.

    • elroyjones says:

      Gosh, that would be a good idea but we might offend some of the far right fundamentalists who enjoy the act of Putting It To the People but don’t want us to talk about it.

  3. Pingback: Cryptoquote Spoiler – 11/18/13 | Unclerave's Wordy Weblog

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