Ratigan Rips Into Obama, Calls Him Out On His "Free Money" Doctrine And TARP Hypocricy

Tyler Durden's picture

If only there were more journalists like Dylan, the vast majority of America's population may well have been on its way to grasping the gravity and the real implications of our current unprecedented wealth transfer paradigm, which the President, despite increasing "political points" rhetoric and recent attempts, such as the Volcker Rule, to if not stop then at least delay (thank you teleprompters), has been instrumental in blessing. Between TARP, guarantees, direct cash investments, and the trillions in implicit benefits from the record steep yield curve, the only beneficiary from the existing financial environment is the banking system, period. That this money could be put to much greater use elsewhere is without question: if these trillions had been invested in education, tech and research, America could now be on the verge of another technological revolution. But it is now too late (and, yes, this does account for marvels such as the Kindle - now if there was only a cool looking gadget that would force more Americans to learn to read). Looking back many years from now, the sad legacy of this administration will not be some vaunted healthcare reform, but the unprecedented amount of capital that shifted away from the nation's working class to the nation's "financial innovation producing" class.

Ratigan's presentation:

The president continues to say in public that banks have almost paid Americans back. That is a lie. The fact is the TARP which congress approved is only 2% of trillions of dollars in free money being provided to our banks by the Federal Reserve and our Treasury. The American people know this. They know that they are subsidizing our banking sector. And yet the TARP lie continues to be spread by our politicians. Our problem, Mr. President, is either you don't understand it, which I doubt, I'm sure you do. You don't want the American people to understand it, which would be understandable, although I also doubt that. Or perhaps you are doubting no one will notice all the other support and the big spending from the Fed will make the whole thing go away, which I think is what is really going on. But I am here to tell you the problem will not go away until you actually fix it. You see, we know, the American people know, that the CEOs of the banks turned into casinos, like Goldman Sachs, JP Morgan, Citi and AIG have paid themselves hundreds of billions of dollars building the debt bombs I was just talking about and exploiting the zero percent money from the Fed and the free money they get from the Treasury. The rewards for this go to bankers in the form of compensation, particularly the CEOs who decide how much risk the banks can take. Meanwhile the risks those banks take, ultimately the losses on all their gambling, go to us, the people and are harvested from our labor in the form of taxes. And worse the extraordinary returns offered by the bankers' fraudulent practices are like a black hole for America sucking money that would otherwise be getting invested in our country, but why would I go to the trouble of dealing with the investment when I have a funny money machine legalized by the government that's done in secret at the bank. Adding insult to injury the same giant banks are using the free money access granted to them by the political body to lend to foreign countries that seek to compete with us. The banks do this because it's more profitable for the bank CEOs to lend to them than to go to the trouble to lending to America even if it's coming at America's expense. Why would we, the people, vote for you, the politicians, to do that to us. It's beyond my comprehension and I suspect almost every other American who understands it.

The real question is why is Ratigan the only person who not only sees this, but has the guts to say it on national television TV.