Neil Barofsky, head of TARP, says the system is corrupt


The government tried to kill TARP and “justified rage” is needed to destroy the corruption endemic in the big banks and the government, says Neil Baroksky. He was Special Inspector General in charge of oversight of the Troubled Asset Relief Program (TARP) and author of the bombshell book, Bailout. An Inside Account of How Washington Abandoned Main Street While Rescuing Wall Street.

Writing for Bloomberg, Barofsky says:

Americans should lose faith in their government. They should deplore the captured politicians and regulators who distributed tax dollars to the banks without insisting that they be accountable. The American people should be revolted by a financial system that rewards failure and protects those who drove it to the point of collapse and will undoubtedly do so again.

Only with this appropriate and justified rage can we hope for the type of reform that will one day break our system free from the corrupting grasp of the megabanks.

The important thing to remember is that Washington is not somehow a hapless captive but a completely willing co-conspirator. At the top levels, the game is fixed. That’s where our justified rage comes in. Smash the banks. Jail the bankers. When a ruling class becomes grotesquely corrupt, history is filled with instances where it is brought down and broken. That’s what we need to do now. And I’ve no doubt that it will happen. People across the political spectrum are seriously pissed about the federal government sending trillions to Wall Street while ignoring Main Street.

Both parties are equally complicit. There is no difference between Obama and Romney when it comes to supporting corrupt big banks and not enforcing the law. This is not a presidential race between the lesser of two evils but, as Ralph Nader famously put it, the evils of two lessers.

You’ve done a heck of a job, Timmy

Zero Hedge

Lets be brutally frank shall we. From the day he first set foot in the Department of Treasury, this useless piece of garbage called Timothy Geithner has been good for one thing and one thing only: To protect and serve his Wall Street masters.

As the President of the NY Fed he saved the TBTF rat’s nest from the self inflicted disaster also known as Lehman and AIG (the latter at 100 cents on the dollar), then he took the sleaze shuttle down to Obamaworld to take personal charge of the mopping up operation.

What has he done for Wall Street and Main Street? I believe these two charts say it all.

Timmy was really in there fighting for Main Street, right?

Wait for it. Liberal bloggers will be gushing about how much better things will certainly be now that Obama won’t mistakenly be taking advice from that horrid Geithner fellow. They are of course forgetting that Obama appointed him, has done nothing to stop looting by the banks, and is now groveling before them for campaign contributions for 2012. Bought and Paid for indeed.

From the comments

Great skit but the country is a sewer and run by criminals. As we all lose our way of life, these MF laugh their way to the bank.

Karl Denninger on Strauss-Kahn, IMF, and more



His latest 30 minute podcast is on BlogTalkRadio now.

The IMF, Greece, the US Debt position (breach day is today, incidentally) and more. 30 minutes of, well, “grab the popcorn” discussion.

Denninger is co-founder of the original Tea Party, which was founded specifically in opposition to the bailouts of insolvent banks by the federal government. He’s neither racist nor a loony and has nothing but scorn for the Tea Parties who jacked his idea and turned it into “pablum; God, guns, and gays.”

From the show:

Did you know that a woman in Florida had her house broken into twice by thugs from banks with no paperwork and the police did nothing? The house was not in default. Geithner wants to grab money from our retirement funds and increase the debt limit. This so the banksters can be paid off at the full amount on their bonds. There’s no talk of restructuring, the US taxpayer is expected to bend over and take it for the banksters.

It’s like the allegations against Strauss-Kahn, isn’t it? He takes, someone gets raped. How apt that he has raped countries via the IMF for bankster bondholders.

Denninger says if DSK didn’t do it, then someone set him up. This creates a ‘battle of the lions’ whereby they try to destroy each other, something we benefit by as the truth eventually comes out. As an aside, he says, Eliot Spitzer was set up, but you can’t be set up if you don’t take your pants off.

I find Denninger’s bluntness, genuine anger, and courage a welcome change from the increasingly tepid liberal / progressive blogosphere which is mostly preoccupied with blogging about what those horrid Republicans are doing. Hey, Strauss-Kahn is (at least nominally) a socialist, so I guess the problem isn’t just one political faction, is it? Rather, the system itself is rotten and corrupt.

US government led by Geithner gives big banks a free pass

The fix is in. The Financial Stability Oversight Council led by Geithner made sure the big banks will be allowed to do whatever they want, risk and the general good be damned, even as other countries are moving to limit the size of banks. But in the US, the interlocking nexus between the big banks and the higher reaches of government insured the report would do nothing to challenge the power and size of the big banks.

There is a pattern of official behavior here. Central banks in other industrialized countries are at least beginning to confront the ideology that supports the unfettered and undercapitalized growth big banks.

In contrast, the Treasury, the Federal Reserve, and now the FSOC are distorting the evidence to accommodate the views of Jamie Dimon, Bill Daley, and other executives who want to build bigger, increasingly global, highly leveraged, and much more dangerous banks.

This is a crystal clear example of how the interests of a tiny elite are directly contrary to the rest of us. They played a major role in the current implosion of our economy through their greed and criminality, enriching themselves all the while. Now the government has said they can proceed doing precisely as they were – which will led to the precise same results next time.

Inside Job, the movie. A must-see

http://www.youtube.com/watch?v=X2DRm5ES-uA

The global financial meltdown, at a cost of over $20 trillion, resulted in millions of people losing their homes and jobs. Through extensive research and interviews with major financial insiders, politicians and journalists, INSIDE JOB traces the rise of a rogue industry and unveils the corrosive relationships which have corrupted politics, regulation and academia. Narrated by Academy Award® winner Matt Damon, INSIDE JOB was made on location in the United States, Iceland, England, France, Singapore, and China.

Inside Job clearly documents the rise of the power of financial institutions to the point where they now clearly have corrupted both our political and financial systems. They document this in an almost understated way, letting the facts and participants speak for themselves. Both major political parties are equally complicit. The gutting of financial regulation started with Reagan, continued with both Bushes, was heavily aided by Clinton, and Obama essentially hired the same people who corrupted the system to clean it up thus assuring the status quo. Europe and Britain have made substantially more reforms than the US. Obama refused to limit corporate salaries even after 20 European countries did so.

The thought that continually ran through my mind tonight while watching Inside Job was, these people are criminals, nothing more. And the government protects them.

We need a change.