Posted on December 11, 2014
by Jerry Alatalo
erhaps those who were behind the provision for bailing out financial gambling addicts, slipped in at the last-minute into the United States Congress’ omnibus spending bill, thought nobody would notice. Well, they should have known better. After hearing about the attempt to cover the losses incurred from derivatives, credit default swaps, and other complex financial instruments’ “bets” – the same fraudulent transactions which crashed the world economy in 2007/8 – one is left in a state of various emotions including incredulity, astonishment, resentment, disappointment and, for 99% of the people, sadness.
The “Trojan Horse” language of the provision was originated by lobbyists from Citigroup, according to Senator Warren (D-Massachusetts). Imagine that you traveled to Las Vegas to do some serious gambling, knowing that the Federal Deposit Insurance Corporation was there to cover all the money you lost while playing the “games” in the casinos, and you have a good idea why Elizabeth Warren and many other elected representatives in the U.S. Congress are strongly opposed.
Probable 2016 presidential candidate Hillary Clinton – whose husband was president in 1999 when he signed the bill to eliminate the Glass-Steagall Act, which prevented bankers from gambling with money from customer deposits – would be advised to speak out in great detail her thoughts on the bailout provision. Citizens from every state would be advised to demand from their Congressmen and Senators a detailed explanation of how they view the attempt to put taxpayers on the hook for who knows how many potential billions, or even trillions, of bank bailout dollars.
Elizabeth Warren shares the feelings of most Americans when she says, “let them gamble with their own money, but not with taxpayer money.” Ms. Warren points out the real intent held by those who tried to slip the provision through by using deceptive, deliberately confusing language about how farmers’ ability to receive loans was the benefit sought – not mentioning the real motive: bank bailouts.
The level of audacity and arrogance of those who – after the massive public backlash against government bailouts of banks in the hundreds of billions in 2008 – tried to pull off this tremendous scam leads one to accept the fact that essentially worthless derivatives holdings of the largest banks still add up to tens of trillions of dollars, and that the Federal Reserve’s purchase through quantitative easing of some trillions of the toxic assets from banks didn’t come close to solving the “problem.”
One could accurately predict that the bailout provision will not become part of the spending bill. Americans won’t accept another bailout of the banks; potentially much, much larger those in 2008. There will likely be a number of large bank failures ahead. At that point, the American people would do well to demand that a monetary/financial commission with the nation’s wisest experts on necessary reforms become organized as soon as possible to arrive at permanent solutions guaranteeing such a national financial crisis never occurs again.
What is worth noting is that what Elizabeth Warren and others expressed in the U.S. Senate, as well as members of the House of Representatives, should not be surprising to the American people. The United States of America is in dire need of serious and permanent monetary/banking reform. It has become virtually impossible for Americans to ignore the message woven into Senator Warren’s strong statement, “It is time for all of us to stand up and fight.”
These are truly historic days.
(Thank you to Senator Elizabeth Warren at YouTube)