Friday, April 22, 2011

Happy Easter !!!!

Instead of directly helping the American people, the government threw trillions at the giant banks (including foreign banks) . The big banks have in turn used a lot of that money to speculate in commodities, including food and other items which are now driving up the price of consumer necessities. Instead of using the money to hire Americans, they're hiring abroad (and getting tax refunds from the government).


Ironically, the financial system isn't in great shape according to Standard and Poors:

"Additional fiscal risks for the U.S. include the potential for further extraordinary official assistance to large players in the U.S. financial or other sectors, along with outlays related to various federal credit programs. We estimate that it could cost the U.S. government as much as 3.5% of GDP to appropriately capitalize and relaunch Fannie Mae and Freddie Mac, two financial institutions now under federal control, in addition to the 1% of GDP already invested. The potential for losses on federal direct and guaranteed loans (such as student loans) is another material fiscal risk, in our view. Most importantly, we believe the risks from the U.S. financial sector are higher than we considered them to be before 2008 ".

In other words, the government has thrown trillions at the big banks, but instead of using those funds to shore up their balance sheets and return to prudent banking practices, the big boys have used the money as new gambling chips for speculative commodities plays which are hosing the American consumer at the grocery store, Wal Mart and the gas pump.

Good thing the Easter bunny only eats grass.

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