Crony capitalism is a pejorative term describing an allegedly capitalist economy in which success in business depends on close relationships between businesspeople and government officials.You say FASCISM can't happen here. Well it is, and has been happening here for a long time. The most egregious example of this cronyism is the creation, and execution of the TARP bailout. It was the most expensive bill, and largest bailout in American history. It was designed hastily behind closed doors, with only a few select power players. When they met resistance from We the People, they fabricated fear mongering threatening Marshall Law, and the end of the world. The American people opposed the bailout 99 to 1, and to make their voices heard called Congress shutting down the switch boards on numerous occasions. But, the so called CRONIES knew better than us. We The People were too dumb to understand the systemic risk to our economy if the big Robber Barons on Wall Street failed. So with enormous arm twisting and threats, the $750 billion TARP bailout passed.
Goldman got $10 billion straight from their friend in Treasury Hank Paulson. But little is known about the $13 billion they got from the AIG bailout. AIG is an insurance company that insured gambling debts on Wall Street through Credit Default Swaps. First thing to note is the FDIC has no obligation to bail out Insurance Companies. They only bail out banks. So why did we bail out AIG? Could it be that Goldman Sachs got into trouble gambling on the market, and their insurance policy with AIG was going under? Perhaps, because a funny thing happened. AIG got bailed out to the tune of $85 billion of our tax dollars, and Goldman Sachs got their $13 billion insurance policy from the AIG conduit - 100% on the dollar. It's sure good to have a crony in government.
Hank Paulson had to face Congress last week regarding the bailout, and the merger of Bank of America & Meryll Lynch. What he did in forcing this merger is Criminal! What he did with the bailout is Criminal! In a lawful country he would be in jail. But in our current America, land of Crony Capitalism, Hank Paulson lives in a castle. His friends on Wall Street, Goldman Sachs and JP Morgan, just enjoyed their best quarters in history, and will receive record bonuses. While we Americans experience historical unemployment, foreclosures, and are stripped of our wealth - Wall Street lives in luxury. Will anything happen to these bastards? No! We live in a Fascist country remember. They only take care of their own. But at least we can get some pleasure from watching him squirm a bit at the Congressional Hearings, or should I say the Congressional Theater of the Absurd.
Act I - Paulson Squirms!
Act II - Paulson LIES!
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