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

George Washington's picture

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Weisbrot's picture

why support states that arent onboard with health care and other federally mandated pograms?

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.

 

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!

http://www.bullionbullscanada.com/index.php?option=com_kunena&Itemid=122...

Bob's picture

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

Recapitalization?  What's that?

ATG's picture

Best yet, GW and ZH

Why play against loaded dice?

chindit13's picture

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

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.

 

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. 

bunkermeatheadprogeny's picture

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

TARP:

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.

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.

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.

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.

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

Bob's picture

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

Dexter Morgan's picture

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

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.

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.

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. 

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. 

Clycntct's picture

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

http://www.huffingtonpost.com/2011/01/13/citigroup-was-on-the-verg_n_808...

knukles's picture

Reuters-

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." 

topcallingtroll's picture

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

DosZap's picture

topcall,

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

http://chicago.cbslocal.com/2011/01/12/is-treasurer-maria-pappas-wasting-your-tax-dollars/

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

midtowng's picture

A tour de force

DosZap's picture

A Bidet to be reckoned with!

DosZap's picture

A Bidet to be reckoned with!

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!

Rogerwilco's picture

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

f16hoser's picture

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

Got any banannas?

 

 

f16hoser's picture

...and another thing, BUY SILVER!!!!

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 . 

hugovanderbubble's picture

Great Job GW, i like ur articles.

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.

DosZap's picture

Do you mean Unconstitutional?,NO SHIT!.

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.

 

http://www.dallasfed.org/news/speeches/fisher/2011/fs110112.cfm

knukles's picture

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

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)...it's the old ones I go off on (willful stupidity combined w/arrogance).

knukles's picture

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

Clycntct's picture

Opps sorry for the dup post below.

Was reading coments from the bottom up.

Well I am half ass backward.

Widowmaker's picture

Salinger Assange?

This just in: 

THEY ALL ARE TO THIS SECOND IN MARK TO UNICORN ACCOUNTING!

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.

 

 

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.

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?

 

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.

whatz that smell's picture

poverty + austerity + unemployment + taxes = wall street bonus