Government Says No to Helping States and Main Street, While Continuing to Throw Trillions at the Giant Banks

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Sat, 01/15/2011 - 07:52 | 878509 Weisbrot
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why support states that arent onboard with health care and other federally mandated pograms?

Fri, 01/14/2011 - 22:19 | 878145 essence
essence's picture

And the President of the United States presiding over all this

Barack Obama ...who ran on a platform of "hope & change".


Don't nobody EVER forget this.


Fri, 01/14/2011 - 11:39 | 875956 cramers_tears
cramers_tears's picture

So the Fed made 81 Billion in earnings in 2010.  Now is that with "mark-to-market" in place?  And should I hold my breath for that big dividend check to come in the mail?!?!  $81 Billion / 340 Million US Citizens = $238.00 USD.  I could buy a week's worth of food for sure!

Fri, 01/14/2011 - 11:59 | 876033 Bob
Bob's picture

Love the way Mark To Myth allows payment of $144B in bonuses, too.

Recapitalization?  What's that?

Fri, 01/14/2011 - 09:47 | 875698 ATG
ATG's picture

Best yet, GW and ZH

Why play against loaded dice?

Fri, 01/14/2011 - 06:41 | 875556 chindit13
chindit13's picture

Never have so many sacrificed so much for so few who deserved so little.

Fri, 01/14/2011 - 07:11 | 875571 nmewn
nmewn's picture


Fri, 01/14/2011 - 04:20 | 875508 killben
killben's picture

I am waiting for more after the Ibanez verdict. Change of laws to screw home-owners and save the banks from their misdemeanors.

This is a banana republic .. plain and simple.


Fri, 01/14/2011 - 03:34 | 875482 BankRiot
BankRiot's picture

I don't think the Federal Reserve will bail out the States and Muni's on fair terms.  States rights are a threat to the FED power, therefore I think they will either let them dry, or offer userous loans to them. 

Fri, 01/14/2011 - 02:54 | 875465 bunkermeatheadp...
bunkermeatheadprogeny's picture

You can go right down the list and show the losers on all the above bailout programs:


The tax payer, small banks and credit unions that are at a competitive disadvantage, the large banks that Uncle Same chose to let fail.

Mortgages and Housing:

Homeowners, buyers, sellers, renters, local tax revenue, condo associations because government intervention creates uncertainty and continues to depreciate the housing market.


I would have kept going, but the list of losers that Uncle Sam picks and chooses for the benefit of TBTF is endless.

Fri, 01/14/2011 - 02:49 | 875463 GreenSideUp
GreenSideUp's picture

Since you're talking about Main Street:

Fri, 01/14/2011 - 02:21 | 875448 ebworthen
ebworthen's picture

It's simple.

States contain citizens with assets.

Why bail out the entities that contain the assets you want to confiscate?

It's the end run for the banks and the states and the feds, they just don't want it to look that way.

The new found "Austerity" is blood in the water for conservatives just as "Hope and Change" was blood in the water for the liberals.

Either way the banks get their money, and the political elites keep their power.

Politics is the distraction.

Fri, 01/14/2011 - 02:13 | 875441 Bringin It
Bringin It's picture

Thank you George.  I've been waiting for this day.  The day when even the most comatose sheeples can plainly see that the wealth and largesse of the country goes to the bankster owners of the Fed and not the well-being of the sheeples.

What will the Obummer devotees make of things when they realize they may never have a chance at owning an iPad after all?

Now, watch what happens.  [Sadly] nothing, IMO.

Another shining moment arrives soon when the newly elected tea partiers join in the vote to raise the debt ceiling.

Americans could not possibly have been so stupid in the past, could they?

Buy more silver.

Fri, 01/14/2011 - 00:19 | 875318 Trimmed Hedge
Trimmed Hedge's picture

If you can't beat 'em -- join 'em!


Nothing is stopping you from racking up some credit card debt at 0% interest for 12-18 months, and using the resulting float to your advantage.

Nothing, that is, except a shitty credit score.

Fri, 01/14/2011 - 02:14 | 875443 Bringin It
Bringin It's picture

I'm tempted. 

Thu, 01/13/2011 - 23:47 | 875272 onlooker
onlooker's picture

The Great Financial Genocide of America.


Freedoms World Wide are constricting (today Drudge Report).  Freedom in the USA is taking a hit from the lack of the rule of law. The ZH reports of fraud and criminality and mischief are frequent and not restricted to ZH. If the major criminals are not brought to justice—which will not happen, The Freedom of equal justice, equality of law, and the laws themselves are broken.


All of the Amendments are important but the most destructive problem now is lack of Law, recognition of Law, and enforcement of Law.


We are becoming a Lawless Nation. One of the problems is that this lawlessness is destroying the financial structure of this Nation. When the people loose everything, there is nothing left to loose. When there is nothing to loose, the fabric of society dissolves.


I don’t know if it has gone so far that it can’t be saved. However, this is America, the land of the risk takers and survivors. Some will make it. Looking at some bonus packages, I guess some have made it. 


The Great Financial Genocide of America.              just sayn

Thu, 01/13/2011 - 22:48 | 875185 Bob
Bob's picture

Quite a list, Geo!  Many thanks for pulling it all together. Wow.  That was a lot of work!

Thu, 01/13/2011 - 23:06 | 875214 Dexter Morgan
Dexter Morgan's picture

Agreed.  Outstanding work!  That's a better horror story than Edgar Alan Poe ever wrote!

Thu, 01/13/2011 - 22:42 | 875174 ShankyS
ShankyS's picture

Best most comprehensive post I have seen yet covering the issues top to bottom. Thanks for this and all your superior work GW.

Thu, 01/13/2011 - 21:50 | 875092 Mad Mad Woman
Mad Mad Woman's picture

Excellent post GW. Well, it won't take much more to get the tax payers to revolt against the major banks. This is getting more and more obscene. I'm sick of it & mad as hell.

Thu, 01/13/2011 - 21:44 | 875079 MarketTruth
MarketTruth's picture

The private Federal Reserve does not benefit their members/owner by bailing out States. The Fed does benefit their owners/members with POMO, etc. 

Thu, 01/13/2011 - 21:44 | 875078 MarketTruth
MarketTruth's picture

The private Federal Reserve does not benefit their members/owner by bailing out States. The Fed does benefit their owners/members with POMO, etc. 

Thu, 01/13/2011 - 19:33 | 874772 Clycntct
Clycntct's picture

Here's some more horseshit confirmation to make you hold your nose

Thu, 01/13/2011 - 20:30 | 874897 knukles
knukles's picture


A common sense investigation by Joe Sixpack costing absolutely naught concluded that Citibank was wanking the old knob raw inducing the goober-ment to administer a taxpayer blow job.  Sixpack's only comment was; "Great day's self-abuse if you can get it." 

Thu, 01/13/2011 - 18:55 | 874660 topcallingtroll
topcallingtroll's picture

If those big spending states and municipalities dont have any cake, then let them eat shit...NO BAILOUTS!!! Enough already!

Thu, 01/13/2011 - 19:11 | 874717 DosZap
DosZap's picture


Here is a GREAT reason for your rant..................

Home of the POTUS EXTREMIS,and we wonder why they are wanting a Bail out?.

Thu, 01/13/2011 - 19:57 | 874819 topcallingtroll
topcallingtroll's picture


Thu, 01/13/2011 - 18:47 | 874640 midtowng
midtowng's picture

A tour de force

Thu, 01/13/2011 - 18:59 | 874676 DosZap
DosZap's picture

A Bidet to be reckoned with!

Thu, 01/13/2011 - 18:59 | 874674 DosZap
DosZap's picture

A Bidet to be reckoned with!

Thu, 01/13/2011 - 18:30 | 874585 max2205
max2205's picture

TBTF will be healthy when the market crashes next. They will be prepared to profit from it with all the cash leveraged this time damn it!

Thu, 01/13/2011 - 18:23 | 874563 Rogerwilco
Rogerwilco's picture

Disraeli advised that we should never believe anything until it has been officially denied.

Thu, 01/13/2011 - 18:20 | 874552 f16hoser
f16hoser's picture

God I love this country. To think I've devoted over 30 years to military service. Game over!

Got any banannas?



Thu, 01/13/2011 - 18:21 | 874556 f16hoser
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...and another thing, BUY SILVER!!!!

Thu, 01/13/2011 - 18:03 | 874495 geno-econ
geno-econ's picture

Just finished watching Bove on cnbc . Buy ,buy, buy all financials during this sweet spot with Citigroup now legitamite over $4.00 a share and going to $7.00. Certainly cant lose as much as in the past etc.  Lots of sound bites but no detailed discussion of potential losses, derivatives exposure, balance sheet inaccuracies .  Of coarse he said same when price was $22.00 . 

Thu, 01/13/2011 - 18:01 | 874489 hugovanderbubble
hugovanderbubble's picture

Great Job GW, i like ur articles.

Thu, 01/13/2011 - 18:01 | 874488 Spigot
Spigot's picture

About 3 weeks ago I realized that the United States of America (the real nation, not its purported national government) was basicly dominated/subjugated by a financial elite that has so cooped the government that both could now be considered a organized racketeering operation of immense proportions.

Thu, 01/13/2011 - 18:50 | 874649 DosZap
DosZap's picture

Do you mean Unconstitutional?,NO SHIT!.

Thu, 01/13/2011 - 19:06 | 874691 Salinger
Salinger's picture

Fed Govenor Fisher (Wednesday jan 12) talks about congress and its role:

Those lawmakers who advocate “Ending the Fed” might better turn their considerable talents toward ending the fiscal debacle that has for too long run amuck within their own house. The Fed does not create government debt; fiscal authorities do. Deficits and the unfunded liabilities of Medicare and Social Security are not created by the Federal Reserve; they are the legacy of those who control the purse strings?the Congress, working with the president. The Fed does not earmark taxpayer money for pet projects in local communities that taxpayers themselves would never countenance; only the Congress does that. The Congress and administration play the dominant role in creating the regulatory environment that incentivizes or discourages job creation.


I think I have said enough, if not too much. In the musty, time-honored tradition of central bankers, I am now happy to avoid answering any questions you might have.  Thank you.

Thu, 01/13/2011 - 20:22 | 874885 knukles
knukles's picture

Great comments, way to go Fisherman.
Betcha a few goober-mental concritters ain't takin' this none too kindly...

Thu, 01/13/2011 - 20:45 | 874955 nmewn
nmewn's picture

"Betcha a few goober-mental concritters ain't takin' this none too kindly..."

I don't really blame the young ones (ignorance)'s the old ones I go off on (willful stupidity combined w/arrogance).

Thu, 01/13/2011 - 20:20 | 874881 knukles
knukles's picture

I thought that was "butt" instinct.  Thanks for the clarification.

Thu, 01/13/2011 - 19:36 | 874781 Clycntct
Clycntct's picture

Opps sorry for the dup post below.

Was reading coments from the bottom up.

Well I am half ass backward.

Thu, 01/13/2011 - 18:03 | 874496 Widowmaker
Widowmaker's picture

Salinger Assange?

This just in: 


Thu, 01/13/2011 - 17:45 | 874426 proLiberty
proLiberty's picture

The answer for this is simple: the government now fully owns the states, so it doesn't have to give in to their demands for bailouts.  The government is dependent on the Federal Reserve to keep the fiat, air-backed, "liquidity" to fund its power-buying schemes.  The Federal Reserve is owned by the member financial institutions in proportion to their capital.  So, who gets the juice?  Government keeps the owners of the Fed in business and the Fed in turn makes this government possible.



Thu, 01/13/2011 - 18:48 | 874641 DosZap
DosZap's picture

MindMelt, well, the states can say FU, and not pay any taxes to these bstds.

I am a Texan, and the govt does NOT own Texas.

Be fine with me if we dissolved this bitch before THEY destroy it all.( what if everone said, NO MAS!!!)

IMHO, the states, forced to provide and live within their means, would get their ass in gear,budget, cut back the uneccessary shit, cause  we know D.C is never going to do that.

Quit feeding the Oxen, and they starve.

Thu, 01/13/2011 - 19:06 | 874701 proLiberty
proLiberty's picture

As a fellow Texan to another, if the federal government did not own all the states, since when have exactly ZERO states been able to opt out of federal dependent programs like the highway trust fund, aid to education, medicare, medicaid, block grants, sewage and water improvement grants, airport grants, etc?

I would love to see a state just say no to taking a penny from Washington. . The last time that I can recall a state seriously talking about doing just that, it was Montana and the money was federal highway money, and the reason was that they wanted tell the feds to stick their 55 mph speed limit where the sun does not shine.  IIRC, the federal political -MSM establishment went bananas, that it was impossible for a state to refuse to accept their money and their limitations on state's rights, etc.

Does anyone know of a state saying NO since then?


Thu, 01/13/2011 - 23:41 | 875270 AssFire
AssFire's picture

I think we would need to subdivide in 5 states.. We tried to quit the central government once cicil war and they forced their own people (with force) to impose their taxes and controls on us. But we are "free" by their definition.

Thu, 01/13/2011 - 17:45 | 874425 whatz that smell
whatz that smell's picture

poverty + austerity + unemployment + taxes = wall street bonus

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