It's really very simple...

The Theft  ( inside job)
Well, here is a quick reminder of how the theft of your money actually happened and in spite of what Obama says it was really, really  simple.  The government ie. the New York Federal Reserve Chairman  agreed  to pay the banks 100% of the price of the swaps that the banks including Goldman Sachs had bought from AIG.

Its simple really, Goldman Sacks bought the “swaps” ( don’t worry about what that means it doesn’t really matter) for 40 cents on the dollar and the  Government gave them 100 cents on the dollar for them. That’s it, that’ s the brilliant “complicated” solution that Geithner’s brain belched out

This theft of your money  was facilitated  directly at by the then  Chairman of the Federal Reserve Bank of New York just  as Bloomberg reported after viewing the documents , “Part of a sentence in the document was crossed out. It contained a blank space that was intended to show the amount of the haircut the banks would take, according to people who saw the term sheet.” (The term  “haircut” is financial slang representing  the discount to par that an assets sells for.  Say you bought a stock for $10 and sold it for $6 you got a 40% “haircut”.)

Clearly the FED initially sought to not pay full price to Goldman Sachs and a few other banks but rather, rightfully, allow them to take responsibility for their mistakes.  The Chairman of the New York Federal Reserve Bank himself intervened and with a magic marker blacked out that sentence and gave Goldman Sachs an instant 60% profit. The total price tag was $62 Billion dollars for assets that were bought  for about $29.6 billion.  Goldman Sachs got the lions share of that to the tune of $14 Billion of our money over a 14 month period.  Isn’t high finance grand when you can steal from the public with the permission and backig of the government? Just buy any garbage you can and if you lose money, hey, no sweat, Obama and the libs will make sure you’ll have a profit.

Be the resistance

The Payoff

The reward that the Chairman of the New York Federal Reserve got for stealing your money and giving it to Goldman Sachs?

Well, well, well, you see, Goldman Sachs had just gotten a $5,000,0000,0000 ( five billion dollar) loan form Warren Buffet. We can’t possibly let Warren Buffet lose money just because you are unemployed can we? Of course not, if you are unemployed and can’t give Buffet any money, why that’s no problem,  the government will just put your children and grand children in debt..while Obama, Buffet and Soros  and Gorelick and Geitner fly around in Air Force One. ( When the hell are we going to see the pics from inside Air force One anyway?)

OK back to the reward given to  the Chairman of the new York Federal Reserve Bank  for taking your and your children and your grand children money? Well, he became the Secretary of the Treasury, Tim Geithner!

Remember how the lib crooks and their lackeys in the media howled like banshees  whenever anyone questioned the logic of giving the treasury job to a crook who couldn’t even figure out his own taxes? Now you know why. It’s because he gave your money and your children and grandchildren’s  money to Goldman Sachs, Warren Buffet, George Soros etc. They in turn give the money to Obama and ACORN and you and your family have become surfs indentured to the cronies in high finance.

Apropos, Buffet gets $500,000,000 ( five hundred million) dollars in interest  alone, every year because they stole your money to bail  out Goldman Sachs, but its OK because we get to hear how brilliant he is.

The Backlash?

Fast forward to now, Goldman Sachs announces that the bonuses will not be cash and the media hails it as the second coming of Christ. Truth is that the bonuses will be astronomical and will be in stock. The future recipients of these bonuses are not worried about losing money if the stocks go drop in price, they’ll hedge against that.  What worries them is what your reaction will be once you find out how much they made and if the financial system collapse because of the plan to cause the “golden crisis”. For that too they are finding ways to hedge, they are buying guns. Yes that’s right Godman Sachs and co. are very concerned that blogs such as this one will put out the truth and you might have objections to quietly selling your children into serfdom so that Geithner can buy another Bently, and Jamie Gorelick can get another ten million dollar bonus  or Soros and  Buffet can buy another private jet. They are buying hand guns.  I bet with all that money they can probably get a very nice set of sequentially numbered Les Baers. Oh and just for the record, unless you are a Goldman Sachs big wig, good luck buying  a gun in Mayor Bloomberg’s  NYC – that’s reserved for the elites not for the likes of us rednecks!

You can see some of the Goldman Sachs Directors here

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• Al Hunt: Obama Economic Team Needs To Get Its Act Together (huffingtonpost.com)
• Watchdog: Gov't May Have Overpaid to Bail out AIG (abcnews.go.com)
• Jill Schlesinger: TARP Audit Finds Geithner Gave Away The Farm (huffingtonpost.com)
• U.S. Treasury didn't understand AIG: watchdog (ctv.ca)
• Treasury said to be unprepared on AIG bonus plans (seattletimes.nwsource.com)
• Fair Game: Revisiting a Fed Waltz With A.I.G. (nytimes.com)
• AIG: The Secret Bailout (blogs.harvardbusiness.org)

Image by Getty Images via Daylife

Perhaps we need a new vocabulary, one that helps us describe a society that promotes the accumulation of vast riches, bails out the rich when they take too many chances, and avoids responsibility for the common good. Even Milton Friedman would have trouble calling that capitalism.

How about the Billionaire Bailout Society?

Here are its salient features:

1. We promote accumulation of vast fortunes without limits.
2. We shun progressive income taxes that could narrow the gap.
3. We keep most of finance deregulated even after it has collapsed so spectacularly.
4. We let the minimum wage atrophy.
5. We discourage unionization.
6. We let middle class jobs disappear.
7. We allow a revolving door between public office and high paying private sector jobs.
8. We let our public infrastructure deteriorate.
9. We belittle government and public service.
10. We promote private gain as the best way to promote the common good.
11. We force our children to pile up debt in order to get an education.
12. We live with a porous safety net.
13. We encourage health care to be a profit maximizing enterprise.
14. We allow institutions to become too big to fail.
15. We bail out the largest financial institutions when they do fail, even if that means transferring trillions to Wall Street.
16. We allow Wall Street to use its bailout money to lobby against the public interest.
17. We let Wall Street keep its bailout-created "profits" and bonuses.
18. We have no clue if the financial sector provides any real value to our economy.
19. We permit financial hucksters to buy up solid companies, load them up with debt, take the cash, and then drive them into the ground.
20. We bad-mouth as protectionist all efforts to keep jobs in this country.
21. We don't have any serious plan for returning to a full-employment economy.
22. We live in awe of billionaires.

Of course, it takes a billionaire to help us understand how the billionaire bailout society really works. Here's what George Soros said recently about Wall Street's latest profit binge:

"Those earnings are not the achievement of risk-takers. These are gifts, hidden gifts, from the government, so I don't think that those monies should be used to pay bonuses. There's a resentment which I think is justified." (Reuters)

Yes, there's resentment, but most of the action has come from the tea-baggers who are the foot soldiers for our new social order. Although the vast majority of Americans are upset about the financial casino, the bailouts and the loss of jobs, we need a progressive infrastructure to mobilize it. Perhaps the recent demonstrations at the American Bankers Association meetings in Chicago signal the start of labor and community mobilizations. It's long overdue.

It would be easy to give up. Apathy is Wall Street's best friend. But we've been here before. It took the populists several generations before they were able to bust the trusts when Teddy Roosevelt rode to office. It took decades of labor agitation and the organization of the Progressive movement before its ideas became the core of the New Deal. It took even longer for African-Americans to build a successful civil rights movement to end Jim Crow. We shouldn't expect it to be easy to build an alternative to the billionaire bailout society.

We drank the cool aid of deregulated markets and private gain as supreme values. We got drunk on its bubbles until they burst. Now we're bailing out the super-wealthy while 29 million of us need work.

Turning that around is going to take hard work and planning for the long haul. It's going to take years of education and organizational development. Twitter is a great tool, but it can't substitute for organizational structures. Most of all, it's going to take a new vision that focuses on the common good, on what ties us together, on something more precious than private gain.

What does that mean? Imagine what we could do if we had the courage to institute steep progressive taxes. Today, the top 400 wealthiest Americans have a combined net worth of about $1.5 trillion. Had progressive taxes reduced their wealth to "only" $100 million each, we would be able to endow every public college and university, two-year, four-year and graduate school, so that all of our children could go to school free, in perpetuity.

Wouldn't that be worth it?