History shows that theFed and the bankers who own it have stair stepped their way to power via a policy of we broke it, you pay for it, and give us more control of it.
And so it was with TARP, that the weight of the bankers leveraged risk was dropped on the taxpayers back. No one wants to tell you but bankers had that baked into the cake at least before Henry Paulson became Treasury Secretary. And they continue to get everything they want under the Obama, administration, just as they did at Bush before him.
Paul Volcker and senior Harvard economist Jeffrey Miron both testified to Congress this week that the government is trying to make bailouts for the giant banks permanent.
Writing Wednesday in The Hill, Congressman Brad Sherman pointed out that :
That is a huge gravy train to the top 20 [financial institutions] because it allows them to borrow money at a lower rate. Think of what this does to moral hazard.But this is just the beginning of TARP as the bankers seek to make it permanent. In essence the bar to casino its pouring free drinks and all the bad bets will be covered by the taxpayer. How long will the party last? At least until they can pull the TARP up over the taxpayer's stone cold body.
I’m not looking for a TARP on steroids with oversight. I’m looking for an end of TARP.