Subscribe to Dollars & Sense magazine. Recent articles related to the financial crisis. The Wall Street Coup (Ismael Hossein-zadeh)From the fantastic MRZine.The Wall Street Coup and the Bailout Scam by Ismael Hossein-zadeh The "rescue" plan is not only fraudulent, it is also the wrong medicine for the ailing economy. The Wall Street took the US (and the world) hostage and extracted a heavy ransom. But while the enormous ransom was successfully extracted, there are no guarantees that the hostages will be set free from the shackles of trickle-down economics. On the contrary, there are strong indications that the fraudulent (and perhaps criminal) bailout may turn the current crisis into a protracted agony of a long-bleeding economic depression. Why the Bailout Scam Is More Likely to Fail than to Succeed The bailout scam is doomed to fail because it avoids diagnosis and dodges the heart of the problem: the inability of more than five million homeowners to pay their fraudulently inflated mortgage obligations. Instead of trying to salvage the threatened real assets or homes and save their owners from becoming homeless, the bailout scheme is trying to salvage the phony or fictitious assets of Wall Street gamblers and reward their sins by sending taxpayers' good money after the gamblers' bad money. It focuses on the wrong end of the problem. The apparent rationale for the bailout plan is that, while the injection of tax payers' money into the Wall Street casino may not be fair, it is a necessary evil that will free the "troubled assets" and create liquidity in the financial markets, thereby triggering a much-needed wave of lending, borrowing, and expansion. There are at least five major problems with this argument. Read the rest of the article. Labels: bailout, financial crisis, Ismael Hossein-zadeh, MRZine, Wall Street Please consider donating to Dollars & Sense and/or subscribing to the magazine (both print and e-subscriptions now available!). |
