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FIX This Mess

Bank on Big Bonuses for the Boneheads

By Mike Botta

It’s amazing that Americans coast to coast aren’t absolutely outraged over last week’s news alert that Wall Street intends to dole out billions of dollars in bonuses this year to the very people who caused the whole big financial mess to begin with.

The very same people who subsequently were rescued from oblivion with taxpayer money, then turned around and hit the taxpayer with huge increases in credit card interest rates and penalties, bumped up all sorts of ATM and other nuisance fees and made it very difficult for the average citizen – even those with stellar credit -- to get a simple car loan.

Sure you hear people grumbling and attending occasional “tea parties.” Whether picking up items at the grocery store, strolling through the mall, waiting in line at the movie theater or settling in for dinner at a local eatery, people are mumbling and grumbling about the nonsense taking place at taxpayer expense.

Kicked So Much It No Longer Hurts

But, it’s almost as if members of the middle class – the only ones really paying for all the rescues and bailouts – have become so numbed by getting kicked in the backside so often that now they’re even resigned to getting kicked in the front-side without making more than a whimper.

There’s been no huge backlash against the big banks, the legislators who gave away the taxpayer money without demanding line by line accountability on how all the dough was being spent, or the mainstream media outlets that largely continue to sweep any criticism under the rug and out of the public view.

Not About the Bailout

This is merely an observation, not a condemnation of the bailout program that over the year certainly has rescued – if even only temporarily – the country from the brink of financial collapse. One could probably make an argument that had Washington done nothing at all, we all might be living in boxes in public parks today counting the ants climbing hills.

No, this is about the arrogance of the money marauders who took the taxpayer money, righted their own personal ships, threw the taxpayer overboard and now plan to pocket oodles of cash in the form of big holiday bonuses. All this while the unemployed engineer in Detroit is wondering how to make it to the holidays and still have a roof over his or her head.

Those Who Can Fix It, Don't Feel the Pain

This is also about the Washington types – both Dems and Reps –  who routinely don the makeup, go on the Sunday talk shows and yap about how Wall Street needs to be reigned in, but never really get down to doing anything about it while the mauled middle class gets hammered.

Of course, maybe those in power aren’t doing anything to fix the big mess because they don’t live within the middle class masses they represent and, thus, don’t feel the pain.

Besides, instead of fixing the banking system, health care and all the other important issues of the day, it’s a heck of a lot easier to just draft some new taxes. That always fixes everything.

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Comments

  • Dave O'Leary on Oct 19 2009 5:43:29:000PM

    Your article seems pretty accurate in it's description as to the reason for the lack of response, and the shock that has taken over. When I realize that there is no sense to object to, or resist- I look at alternatives. How can I make choices that will remove power from these insane bankers? How about economically- taking my business elsewhere. Loans? How about Peer-To-Peer lending, such as www.prosper.com or www.lendingclub.com this is one of the ways I have considered as ways to object to this madness.

  • Christopher Hahin on Oct 19 2009 1:59:58:000PM

    The principal mistake was made by Sec. Paulson of the Bush Administration and Federal Reserve Chairman Bernanke. When Paulson insisted on major banks taking the bailout funds, he never insisted on placing federal monitors on the boards of directors, replacing the greedy folks who approved those egregious bonuses. Nor did Paulson insist on the same for AIG, even though the US now owns 80%. Now if you own 80% of the stock, wouldn't you have complete control of the corporation, including pay, and the ability to terminate? Isn't it interesting that a corporation can abrogate any of its "contracts" for poor performance so that executives can "pursue other interests", yet the government is powerless? The reality is that the financial industry is virtually uncontrolled, in spite of federal regulation and the legislators who draw their contributions from the same industry. In the words of one senator, "They own the place".

  • Dave Chekouras on Oct 19 2009 1:20:40:000PM

    Dear Ed, Don't you know that only the government can be blamed for anything and everything? These Banks are "private"! They don't even need "Privatizing"! All corporations are people now, endowed by their creator with certain inalienable rights, freedom of speech-spending and so on, aren't they? Soon, corporations, including banks will all be baptized, just like people, which they are, and THEN we'll see ethics! They'll fight and die for our country too, won't they? I forgot. They'll privatize that by sending in Wackenhut. Socialism is NOT wrong when you're too big to fail. Socialism is wrong for individuals because it leads to moral hazard, but not for Banks. People though, will think that the government will be there to bail them out when they make financial messes because they think that they are people, you know, like a "bank people" for God's sake! The "top" 25 banks now hold twohundredthreetriliontwentyeightbillionnintyeightmillion dollars (and no/sense) of notional value(think "face" value) in derivative contracts, according to the office of the comptroller of the currency. (Government! They lie!!) How about we just call it $203 Trillion, OK? (Kinda makes Single Payer look cheap.) These are SOLID investments with NO CHANCE of counter party default. There just can't be any default, because just 1% default would be what, $2 Trillion and they wouldn't do that to us! They're too big for that! The GDP of the whole world is about $55 Trillion, according to the CIA. (Government again! They lie too!!) It's all OK of course. Safe in the hands of the "too big to fail" and not the cursed government. Adam Smith's "invisible hand" has been giving us all the finger for 30 years. FOX "Movietone" tea parties indeed! Dave Chekouras

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