Wall Street’s 10 Biggest Lies of 2009

From Huff Post:

Say goodbye to 2009, the worst economic year since the Great Depression.

Say hello to the billionaire bailout society in which the super-rich gamble, lose and get bailed out by the rest of us.

To save the system from total collapse we poured trillions of dollars into the financial sector. The result? Banks still are refusing to lend. Thirty million Americans are looking for full-time jobs and 49 million are skipping meals including one out of four children. But Wall Street again is reaping record profits and bonuses.

Not only are we richly rewarding those who wrecked our economy, but also, we have to put up with hundreds of fabrications about how the big banks got us here. Here is my biggest, fattest lies list for 2009:

1. “Government programs for low-income home buyers caused the financial crash.” Wall Street defenders were quick to blame the Community Reinvestment Act, which urges banks to loan money in minority communities. In fact, almost none of the CRA loans are sub-prime and the vast majority are doing well, thank you. Blaming government programs deflects us from the real cause: Wall Street’s incredibly reckless creation, marketing, selling and trading of “innovative” new securities that supposedly removed the risk from pools of risky debt. It didn’t work. Wall Street, not the poor, crashed our economy.

[Read more at Huff Post]

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  • http://www.facebook.com/dannysherwood14895 Danny Sherwood

    These are some of the biggest lies ever told. We are not a socialist economy. We are a predominantly market economy. The government and business make the decisions as to the economy. However, The fractures in the middle class is deeply disturbing.

    • honu

      The fall out from the financial “collapse” and the way the government handled the bailouts affirms what people who've been paying attention know already. This country's capitalism is not a free market based on the consumers' buying habits and fluctuations. These companies should have been allowed to fail. Why? Because the assholes who are constantly pushing the free market system tout it as the most fair saying that as long as you provide relevant products/services then you are allowed (via consumer spending) to survive and thrive. If a corporation f's up and goes under, that's true capitalism. But not here. If you're 'too big to fail' then by all means let the tax payers keep you afloat. Corporate welfare is what it is but as soon as you start talking about helping the working class or poor, well too bad for you. God forbid people think of our society as having a social contract whereby we take a little care of our citizens. And this new healthcare 'reform' ain't that btw. All this year did for me was put on display the croneyism and rotating door of corporations and politics. Bunch of lying thieving hypocrites.

  • Anonymous

    Exactly – over here in the UK it’s pretty widely acknowledged that it was the de-regulation of the city, brought in by the setting up of what was called the Financial Services Authority,or FSA, which allowed the banks to massively increase their risks, amd lending or investing in high-risk ventures such as the sub-prime market. Guess who was responsible for bringing it in? … good ol’ Gordon Brown when he was chancellor to Phoney Tony Bliar. The fact that this happened on both sides of the pond, triggered by the sub-prime collapse, at fairly similar times kind of backs up the fact that government will basically do anything big business lobbys for at the moment, and then we have to sit through a recession and lose jobs, pensions and money just so WE can bail out those very same rich city fat cats that lobbied for de-regualtion in the first place! It’s utterly SICK! why are we letting this happen? Are we all really this stupid and naive??

  • sidneee

    Exactly – over here in the UK it's pretty widely acknowledged that it was the de-regulation of the city, brought in by the setting up of what was called the Financial Services Authority,or FSA, which allowed the banks to massively increase their risks, amd lending or investing in high-risk ventures such as the sub-prime market. Guess who was responsible for bringing it in? … good ol' Gordon Brown when he was chancellor to Phoney Tony Bliar. The fact that this happened on both sides of the pond, triggered by the sub-prime collapse, at fairly similar times kind of backs up the fact that government will basically do anything big business lobbys for at the moment, and then we have to sit through a recession and lose jobs, pensions and money just so WE can bail out those very same rich city fat cats that lobbied for de-regualtion in the first place! It's utterly SICK! why are we letting this happen? Are we all really this stupid and naive??

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