1. Always elect a figurehead president
Putin skirted term limits by getting Medvedev elected president. Then Putin was appointed party leader and prime minister, the real power behind the throne. That’s one way power stays in power playing the game. Wall Street is a master at playing this game, as the single largest money donor to political campaigns. Donations assure continued control behind an illusion of democracy, where all politicians are mere pawns.
2. Greed is great in the new ‘Socialist-Capitalism’
In his blog, Matt Taibbi asks “what’s wrong” with Goldman’s $3.44 billion second-quarter profits on top of setting aside $11.4 billion for insiders? “What’s wrong is that this is not free-market earnings but an almost pure state subsidy” as Congress steals our tax dollars giving them “to the same guys who had just blown up the financial world.”
3. Too-stupid-to-fail big banks will always get bailed out
In the New Yorker Joe Haggen described their arrogant culture: “The god is Goldman. You subjugate yourself to that god, and in return we will make you a gazillionaire.” But as recently as last fall “not a single Wall Street executive” Haggen interviewed “believed Goldman would have survived an overall collapse of the financial system. A large loss would have been inevitable as lending evaporated, and Goldman Sachs would have struggled to shrink the company to a fraction of its size overnight.”
Taibbi adds: “AIG owed Goldman about $20 billion at the time it went into a death spiral.” Thanks to Paulson’s $13 billion gift, tax dollars went through AIG straight into Goldman’s pockets.
4. Pretend to be a commercial bank, risk like an investment bank
Wall Street still gambles as investment banks. Worse: Taibbi says when Goldman converted they became “eligible for a new program that gives commercial banks FDIC backing for unsecured debt … a free AAA rating to the big banks and allows them access to mountains of cheap money.” No wonder “Goldman took full advantage of this deal, issuing $28 billion in FDIC-backed debt after its conversion. Exactly how hard is it for a bank to make a profit when it has unlimited access to virtually free money?”
5. American taxpayers are Wall Street’s personal piggy bank
Taibbi notes that Goldman got $10 billion TARP money, claims they’re now paid off. But the Treasury still has warrants which Goldman wants to renegotiate below market prices, and the juicy low-interest loans help them increase their profit margin.
6. High-risk leveraging guarantees high-paid insider bonuses
After converting into a commercial bank Reuter’s reported that Wall Street was “taking steps to reduce leverage.” But since then “Goldman has been emboldened by all its state backing to borrow more and gamble more than ever,” says Taibbi. “This is the equivalent of a regular casino gambler who hears that the house has doubled down on his credit line and decides to stay up at the tables all night, instead of going home and sobering up.”
Meanwhile, “Goldman’s VaR, or Value at Risk, which measures the amount of money the bank puts at risk on any given day” has “soared since last year.”
7. Government-approved CIA-style silence hides ‘The Game’
The TARP Inspector General estimates total new debt for all bailout programs will be a staggering $23.7 trillion. But the Fed Chairman refuses to disclose vital information, even to Congress. Bernanke learned that trick from the CIA, so they can’t be audited.
Taibbi warns that taxpayers are stuck with piles of Wall Street’s “worthless crap assets they acquired while they were playing roulette the past 10 years or so. We just have no idea how much crap they unloaded on the Fed, or how much they borrowed.”
8. New laws secure perpetual power for new ‘Socialist Conspiracy’
Wall Street, under the command of the Goldman Conspiracy, can further consolidate power over the American people forever by making sure Congress and the President (no matter which party wins elections) passes other new laws:
Kill the proposed Consumer Financial Protection Agency. Kill “public option” competition in the health-care reform. Kill all efforts to revive Glass-Steagall. Pass a “cap and trade” law so Wall Street can start gambling trillions in a new derivatives bubble. Pass laws to guarantee Wall Street’s “too-stupid-to-fail” big banks unlimited access to taxpayer funds in the future, as they’ve enjoyed since October.
Final comment: More demands will naturally follow to empower this banana republic dictatorship disguis