The first video features Dylan Ratigan of MSNBC talking about the testimony before congress regarding new regulations aimed at alleged “too big to fail” banks.
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He hits the point:
He is NOT happy with Geithner’s plan, it would “Let the banks steal all the money”. The banks are allowed to take infinite risk with taxpayer money, where the banks take the upside and we take the downside.
“WHY is it legal for the US banking system to take infinite risk to use money for the largest gambling machine in the world?”
His guest does come up with a way we could possibly partially solve the problem we’re facing : “The bankruptcy law nowadays is that you had to protect the people that lend the money to the banks for 100 cents on the dollar.(…) But you can change that, if a bank gets into trouble you suddenly transfer this debt to equity. This way we could take care of the capital problem.”
I actually don’t really agree, I think it is good that the people that lend the money to the banks are secured: the banks just need to be forced to use the money they get to get more solvent instead of gambling around with it!
Another interesting video I came across is a video featuring two members of the House Financial Services Committee, Congressman Brad Sherman and Congressman Scott Garrett.
Brad says: “TARP on steroids, unlimited, permanent bailout authority vested in the executive branch of government.”(…) “If you listen to the secretary, and you don’t read his 253 page proposal, you may come away with the wrong information.”
This makes me think of the scheme that was used to start the FED in 1913.
This is one of the problems nowadays: The treasury department bombs people with pages of information that are not really worth reading, “If I would be able to cross out three pages I’d be happy”.
The focus lies in a few pages, and that is where the clue is : “The fact is that section 1109 allows the executive branch to loan unlimited amounts of money to any solvent financial institution, while 1604 allows them to make unlimited investments in any insolvent financial institution."
That’s exactly what the Dylan is talking about in the first video in this post! We are giving the Treasury Department the power to take money from US taxpayers in unlimited amounts and hand it over to financial institutions, solvent or insolvent.
I am seriously concerned about Geithner’s plans, how is this going to save the economy?
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