How did financial geniuses on Wall Street have gotten US with the derivatives scam?

It goes like this:

1) Make billions on investors on shaky derivatives. Basically a pyramid scheme.

2) When the pyramid collapses, push off the shaky loans on the taxpayer.

3) Use taxpayer money to post profits. GS repaid TARP money but not all the subsidies they took to buy out Morgan Stanley.

4) Go into bankruptcy threatening other smaller businesses, insuring yet another bailout or merger sweetened with taxpayer money.

5) Management walks away with very nice golden parachutes.

6) No accountability for those who created this mess in the first place (see point #1) since their “skills” are needed to unwind the deals. In fact they end up with pay raises so that they stay on to do the job.

7) Higher taxes for the very businesses this is supposed to save and crippling public debt.

I hope you got all that.

Pued

Related Posts:

• It is NOT the job of the government to prop up the stock market.
• WHAT HAS THE FED Reserve (19l3) Done for AMERICA by setting Interest Rates and Regulating Banks?
• There’s a new way to express your outrage at the Wall Street bailout..
• Manufactured fraud called the US stock “market”:
• Lehman was leveraged 80 to 1. They lied about the value of their assets, they lied about the huge risk they took.

Leave a comment