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Wall Street Hopes You’ve Forgotten the Crash Already


#1

Wall Street Hopes You’ve Forgotten the Crash Already

Chuck Collins

Remember October 2008 — the bank bailouts, the spiking unemployment rate, the stock market free fall?

Maybe you lost a job, got a pay cut, or saw your retirement savings or home value evaporate. Maybe you even lost your home altogether, or saw your small business wither and die.

It’s a hard thing to let go. But Wall Street is hoping you’ve already forgotten it.

That’s because their allies in Congress and the Trump administration are poised to scrap the reforms that lawmakers put in place to prevent another meltdown.


#2

Nobody with a brain forgot. Then again most of the people who voted for him are in denial. I did call our lawmakers about this, and one is Warren one of the founders of the cfbp.


#3

Dodd Frank has enabled the five too-big-to-fail Wall Street banks that controlled 25% of US bank assets when they crashed the economy in 2008, to now control 50% with no end of their march to monopoly in sight. Trump and his band of pirates are cherry picking Dodd Frank to get rid of consumer friendly sections while keeping the Wall Street friendly sections.

Congress put US taxpayers on the hook for more than $20 trillion to bail out Wall Street after the 2008 crash, enough dough to fund Sanders' proposed Medicare for all Murkins for a decade and still have money left over. The GOP now needs to gut Social Security, Medicare, Medicaid, and other "domestic" programs to fund the much bigger bailouts when Wall Street stages the next crash.


#4

"Congress put US taxpayers on the hook for more than $20 trillion to bail out Wall Street after the 2008 crash, enough dough to fund Sanders' proposed Medicare for all Murkins for a decade and still have money left over."

While I am no fan of Wall Street, you are confusing being on the hook for money as opposed to spending it. Yes, the Congress did put US taxpayers on the hook to bail out Wall Street but as much as I would like to deny it, they were loans that were paid back with interest. This is very different from actually spending the money, which you would have to do to fund health care for all, which I am also a fan of. The point is that Wall Street should have had to eat their losses and there should have been no taxpayer loans to bail them out. The percieved taxpayer safety net leads to risky investments on the part of Wall Street and the banks.


#5

I think the bailout worked out amazingly well. Without the bailout we might have had an economic catastrophe--we just don't really know. It is totally crazy that we have not shrunk our "too big to fail" banks or somehow made it 100% certain that they were now totally on their own (which is still scary considering their sizes).


#6

We DO know that had the gubmit taken over the bankrupt banks, rather than bailing them out, we would in 2017 have NO too-big-to-fail banks instead of twice as large and twice as hazardous too-big-to-fail banks that have found new profit centers in bailouts. Since 2008 companies other industries are working toward becoming too-big-to-fail so they can hop on the bailout gravy train.

The 1976 creation of Conrail whereby POTUS Ford and Congress took over bankrupt northeast railroads, reorganized them as Conrail, turned Conrail into a profitable, publicly traded corporation and sold it back to the private sector (CSX and NS railroads). Railroading is inherently a far more complex industry than banking, so taking over banks would have been a whole lot easier.

Banking only became complex when New Deal regulations were lifted and the banksters could turn banking into a shell game, to the extent that many Murkins actually believe the "paid back with interest" fake news.

Trump didn't invent fake news and alternative facts, he just took them to a previously unseen order of magnitude.


#7

I'll never forget! They stole all my retirement savings, as they did to millions of other senior citizens! Disgusting, greedy bastards who got away with all their crimes! We are tired of justice being blind to the crimes of the wealthy who can buy their freedom! That is difficult to ever forget.


#8

The loans that were paid back with interest enabled the further growth of the TBTF.

It cemented their status as systemically vital, and thus, guaranteed future bail outs whenever necessary.

The luxury of private profiteering backed by publicly financed bail outs leads to risky 'investing.' If the Masters of the Universe taught us anything, it was that their greed is unbridled. They understand regulatory capture and the mechanisms of the 'revolving door' between Wall St and DC better than anyone.

When we had the chance to liquidate them, we should have.

But the FIRE sector owns our government, both Rs and Ds, so expect more of the same.


#9

I'm wondering if the record Dow Jones numbers now over 20,000,
if this is a sign of fewer people with more money to gamble or invest?
Why does NPR TV broadcast Wall Street numbers daily, if the public is less invested?
Oh right. Warren Buffett over at BNSF railroader of coal/oil/gas wants to hear them. /^: