Bought and Paid For. Obama and Wall Street

With liberals currently foaming at the mouth about the Koch brothers, Bought and Paid For; The Unholy Alliance between Obama and Wall Street, by Charles Gasparino becomes even more significant. The book details how Obama was backed by Wall Street very early in the 2008 election and with much more money than they’d ever given a candidate before. Obama amply repaid their investment by giving the TBTF banks sweetheart deals, backstopping them against failure, and allowing them to borrow from the Fed at ultra-cheap rates then reinvest it in government backed securities at a higher rate, thus guaranteeing a no-risk return. Further, he allowed accounting rules to be changed for the big banks so they no longer have to mark-to-market. Instead, they can value their toxic securities at whatever price they want.

But that’s not Gasparino’s main point. Instead he focuses on two points. 1) Much of the top management of these banks are Democrats. 2) Wall Street likes big government. Say what? Sure, Wall Street detests any attempts at regulation but in reality is intertwined with and dependent upon big government. Here’s why:

Wall Street loves big government because it can feast off its programs, make money off “infrastructure” spending, and earn its fees selling government bonds to finance the deficit. (pg. 176)

Plus, when the banks co-exist so closely with D.C. that they can determine policy then they also get such perks as mentioned above, like being able to borrow and invest risk-free with a guaranteed profit.

So, it’s hardly just billionaires on the right that are plundering the country. Plenty of liberal Democrat bankster billionaires are doing the same.

Gasparino is a conservative. I disagree with some of his views but they seem principled enough to me. Plus, he is genuinely concerned by the effect the corrupt nexus of Wall Street and DC is having on the rest of the country.

I’ve tried to lay out how much damage has already been done, just how much Wall Street got for its investment when it bought candidate Obama, and how much worse it’s going to get unless and until ordinary Americans wake up and realize how close we are to destroying so many of the values and institutions that have made this country great.

Bought and Paid For. Obama’s unholy alliance with the banksters

What liberals don’t get is that the government is allied with the banksters in the ongoing destruction of the economy. It’s quite purposeful and deliberate, this looting of our country. Politicians grease the way for plundering by the banks.

So says Charles Gasparino in Bought and Paid For. The Unholy Alliance between Barack Obama and Wall Street. He details how investment banks contributed mightily to Obama’s rise and eventual presidency. He has repaid them hugely, giving them practically everything they want. It sure gets cozy. Goldman Sachs pumped $20 million into a little failing bank at no benefit to themselves either, a mighty odd thing for a vampire squid to do. Oh, but wait, Obama was making noises against Goldman and the bank, little bitty Shorebank in Chicago, was politically connected with definite links to Obama. What a coincidence.

Gasparino’s primary point is that the government for decades has been enriching bankers at the expense of the rest of us. Now, with foreclosuregate, it’s just blatant fraud, out in the open, and the federal government is doing next to nothing about it. It’s not because they are stupid or plodding. It’s because that’s how the government wants it to happen. That’s what those on the Left often don’t understand. The government is not our friend here.

Gasparino is a conservative, but the book isn’t about left vs. right but rather about how an obviously corrupt system is working to the detriment of most of us.

People ask me, why are you so down on the Democrats, why not vote for them against the Republicans? This book provides a clear answer. Both parties are equally corrupt. The solutions will not come by voting for one against the other. Our problems are too serious for that. Rule of Law apparently no longer applies to the ultra-wealthy. Politics is flooded with money, and you bet they want something in return. Our economy is being plundered. These are non-partisan issues, and both parties are deeply complicit in all of this.

(All this is just from the Introduction to Gasparino’s book, I’ll be blogging more about the book as I read it further.)