The con is on. Look! Crisis! Bailouts!

[kpete]

You’ve read a lot about how what's going on in Wisconsin is not local. It’s about finishing the long national looting begun in 2008. It's true. The Big Con is on.

It's on when D.C. floats a proposal to allow banks to “reduce the loan balances of troubled borrowers who owe more than their homes are worth.”

Look at that! Bad loans! Troubled borrowers!

Because the proposal also says this:

“The cost of those writedowns won’t be borne by investors who purchased mortgage-backed securities.”

No, those poor unfortunates will be held blameless.

Who are they? The very Wall Street banks that, as Matt Taibbi points out ,
http://www.democracynow.org/blog/2011/2/22/matt_taibbi_why_isnt_wall_street_in_jail%3Cbr%20/%3E

when they flooded the market with these phony securities…were smart enough to realize that they were eventually going to blow, so they started betting against them. They went to companies like AIG, and they took out trillions of dollars of credit default swaps and pseudo-insurance policies on these mortgages. The bailout wasn’t really to pay off real losses in these mortgages. It was really to pay off the bets on these mortgages. So, not only did they flood the market with a trillion dollars of defective merchandise, they got the United States taxpayer to pony up $5, $6, $7 trillion worth of bailout money to pay off their bets on all this stuff.

With Wall Street off the hook, who will bear the burden for these massive losses?

MORE:http://www.dailykos.com/story/2011/02/24/949401/-The-Con-Is-On

[OHdem10]

1. The Middle Class. The Republicans are successfully blaming

Teachers, Union Contracts and Pension Benefits.

Have we not been listening???

[Major Hogwash]

2. When do we storm Wall Street? And get our money back?

Oh, wait, that would make too much trubble.

[cdsilv]

3. The big money is now just 1's and 0's in some computers somewhere.....

....very easy to make it all go 'poof' in an instant. Remember the beginning of the Clancy book 'Debt of Honor' where the 'reconciliation' computers were sabotaged very successfully. The velocity of money went essentially to zero as no one knew what they had or what they owed. Froze the economy. Still not very hard to imagine that happening even today.

[RandomThoughts]

4. That was already discussed.

http://www.youtube.com/watch?v=XkUaV9GZDuk

http://www.youtube.com/watch?v=LzzAjSg9vYs


Although that was after he got rid of the bad rider. But much of that movie is messed up.