Monday, July 27, 2009

July 27,2009/2

Finally finally finally!
For months I have been railing, in NYO and on, that Wall Street was turning a fat profit on the taxpayers' dollar thanks to the subsidies and guarantees made available at the Fed and FDIC. Now, at long long last, the mainstream media has picked up on the greatest bailout scandal of all. An excellent piece by Mark Gangloff in today's WSJ lays it out. You can read it here. The "lede" and "sublede" say it all:
"Banks Profit from U.S.Guarantee/The U.S. guarantee on new debt issued by financial firms will save the companies about $24 billion in borrowing costs over next three years."
Thanks to tax losses, that $24 BILLION! goes straight to the bottom line of GS and other deserving sorts. That's where the profits on which bonuses are based are coming from. It is - to repeat myself - the greatest scandal of the bailout, among the greatest scandals in history. In his grave, Jay Gould must be whirling with envy. Who knew it could be so easy?

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